If the bank sends out a valuer, is their valuation sent to corelogic?

Discussion in 'Property Finance' started by Dan Donoghue, 2nd Jan, 2019.

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  1. Dan Donoghue

    Dan Donoghue Well-Known Member

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    Out of curiosity is the data shared from a valuer? Our online valuation was pretty spot on then we had a valuer come out and get it COMPLETELY wrong, 3 weeks later all the core-logic driven online valuations drop 200K off our valuation and have moved from high confidence to low confidence, whilst I know these valuations are to be taken with a grain of salt I was wondering if this data can be affected so easily?

    What sort of checks are in place to keep valuers accurate?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Valuers are the standard, they do not share their information with core logic as it would breach the conditions of their professional indemnity insurance.

    The valuation prepared by the Bank's valuer is for the benefit of the bank based on the bank's specific instructions and use, it cannot be relied upon by any other party unless the valuer has provided express authority for another party to use the information contained and within the entire context of the valuation.

    You cannot simply pluck the number from the report without context.
     
    Last edited: 2nd Jan, 2019
  3. Morgs

    Morgs Well-Known Member

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    Why'd you get an online valuation and a full valuation?

    3 weeks is long enough for core logic to update their data - and month on month the data is getting worse so that'd explain the decline in AVM/online valuation.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Most lenders obtain valuations through Corelogic who then sub-contract the job to local valuers. The report is then issued to the bank back through Corelogic.

    I don't really know what the internal processes are, but it is reasonable to assume that a valuers report could influence an online valuation.

    Problem is, everyone assumes that a full valuation is going to be more accurate than a full valuation. After all an online valuation is just a statistical estimate, the full valuation takes the same information and applies a brain to it.

    Hard experience tells me that sometimes one is more accurate, and sometimes it's the opposite. In a falling or soft market, if an online valuation is satisfactory to your needs, I wouldn't pursue it further.
     
  5. kierank

    kierank Well-Known Member

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    Can you expand on this please :D
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I should have used the word, "Banks", instead of, "Everyone".

    Lenders give priority to different types of valuations. The hierarchy is as follows:

    Desktop valuation < Kerbside valuation < Short form valuation < Full valuation

    The banks will ignore a valuation to the left if they hold a valuation to the right of this list. Full valuation overrides everything else, desktop valuation overrides nothing.


    Desktop valuation: An online statistical report. Usually one page with almost no details at all (a broker's CMA reports have more useful information).

    Kerbside valuation: A valuer will drive past the property, make a few notes and rely on local knowledge and desktop statistics. Comparable sales may be quoted. They don't enter the property.

    Short form valuation: The valuer will enter the property, prepare a templates report of about 5-8 pages on the property in its current state. Report contains comparable sales and qualifying notes.

    Full valuation: The valuer will enter the property, consider the property as it is and include notes on the highest and best possible use of the property. Comparable sales and detailed analysis is included. Report is usually 20+ pages.
     
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    more so ING I suspect

    ta

    rolf
     
  8. kierank

    kierank Well-Known Member

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    @Peter_Tersteeg, I was having a bit of a laugh when you stated:

    “Problem is, everyone assumes that a full valuation is going to be more accurate than a full valuation.”​

    Especially the bits in bold ;).
     
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  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Doh!

    You know what I meant.
     
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