Interesting Valuation ranges.

Thought I'll share my experience on valuation reports on a refinance and cashout on 80%lvr

My broker submitted 4 val reports with different companies and was suprised on the discrepancy of them

All short form (full inspection) and came in at:

Val report 1: $660k
Val report 2: $880k
Val report 3: $700k
Val report 4: $750k

Market value from Agent said 860-900k if were to sell up now.

These ranges are so far spread.

 

Did any of them have a valuer come out or are they all desktop valuations?

 

They were all fully inspected valuations being a valuer coming in to the property

 

30% variation

 

Does it cost to valuer shop? I didn't know this was an option- I thought you just had to go with whoever the bank use

 

And oodles of borrowing capacity to enable you to pick from a broad range of lenders.

 

$660k to $880k - that's a huge range!

What area is the property located in? Are comparable properties limited? Either way - that's a big gap.

Cheers

Jamie

 

Yeah, that is a wide variation. Wow...

 

Hi

Wow that is a large range of valuations. I would have hoped that the range was no more than 10 or 15% but up to 30% is a huge difference.

Regards,

alicudi

 

This is in Melbournes West a suburb called Caroline Springs.

 

Well that is just bizarre!
Their is nothing unique about the housing in Caroling Springs to cause such a variation.

Every house is nearly the same given it is a huge house and land development with still plenty of land around!

 

Maybe it's wrong for me to say this, but it really makes me question how reputable and professional the industry is, when there are such a discrepancies in the vals.

 

I can't comment on Melbourne, but in Perth we've had similar stories on a number of occasions, although not quite as large a spread.

When we've quizzed the valuers who have come in way under they'll typically give a generic "the market has dropped by X in the last 6 months". They're being super conservative which I ASSUME is because someone has given then the stick for being too liberal with their vals.

 

Hi

May I ask are these valuation figures directly from the valuer or are they from the finance companies directly? If the valuation figures are from the finance companies I wonder if they have altered/manipulated the value to take into consideration what risk profile they have assessed you under and whether some finance companies want to give you less $$$'s than the other. Maybe a finance company that is happy to give you more $$$'s will put a higher value on your property?

If the values given are in full and completed valuation reports that you have given instruction directly to the valuer to perform and have paid for yourself and you have copies of all of these reports from each of the 4 valuers, well I am absolutely shocked and I would say it undermines the credibility of the valuation industry and you will in fact be able to search through each report to see how each valuer came to their final valuation figure.

Regards,

alicudi

 

These were instructed by different banks and assigned by different valuation companies. Its funny that all the reports had half of the same comparables but the other half is what swayed the decision on a high, conservative and low figure.

My property definitely fits in the large block, 50 sqr house range, but those val reports are definitely fire sale figures haha

 

Not completely uncommon to have that sort of variance. Property valuation isn't a science. Valuers have a 10% variance.

 

Wow - thats a huge variance.

I would say that this is more of an anomaly - especially for full valuations.

This isn't all that uncommon for desktop valuations - even so that range is larger than most.

Does highlight the value of valuer shopping where possible (meet servicing/policy requirements of lenders & seeking maximum equity pull/loan amount).

 

Ask for their comparables and see what they used to attain a clearer understanding