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IP valued today - disappointed with result

Discussion in 'General Property Chat' started by BCR, 26th Sep, 2016.

  1. BCR

    BCR Well-Known Member

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    Hi all,

    Had my apartment valued today and was a little disappointed with result. I keep my eyes on nearby sales and know the area very well (Drummoyne, NSW)

    Valued 15/07/2015 @$750k (St George)
    Valued 17/07/2017 @$730k (CBA)

    Valued 26/09/16 @$750k (CBA)

    They have included older sales in the next suburb (Rozelle) vs actually recent sales around the corner less than 3 months ago, both selling for over $815k & $850k with similar floor sizes.

    Trying to understand next steps I can consider, lots of sales activity in the area with some unique qualities of the apartment expected to have at least seen ~3% CG over 14+months.

    Desktop valuation? (broker advised these are fairly inaccurate and may not work in my favour)
    Seek valuation from less conservative lender?

    Any suggestions or advice would be appreciated.
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    What LVR are you looking to borrow to? If under 80% a desk top valuation might be a better option, especially with CBA.

    If not, get your broker to do a valuer shop - they can vary between lenders.
     
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  3. jins13

    jins13 Well-Known Member

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    Seems like it's becoming very normal for vals coming up short (myself included). Hope it works out for you.
     
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    As Jess mentioned - LVR will determine whether a desktop can be used.

    Have those recent sales been registered yet? I assume so if they were three months ago.

    If they're directly comparable - get your broker/banker to contest the result using those sales as comparisons. You'll need three comparable sales to contest. Provide the addresses and property details (links to the sold listings online will help).

    Cheers

    Jamie
     
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  5. BCR

    BCR Well-Known Member

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    Hi Jess, I am not completely sure yet - I am considering going to 90% LVR with LMI this time round... It would not be below 80%.

    I have asked my broker for another valuation and he has mentioned NAB for the next round.

    Is a valuer shop simply the broker sending out a few valuers to the property?

    Thanks
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Yep that's exactly what it is - although with different lenders and different types - ie, desktop, kerbside stc. If servicing is okay ANZ may also be worth looking at - however with a couple of proeprties possibly not an option.
     
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  7. BCR

    BCR Well-Known Member

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    Thanks Jamie, I did exactly that & sent through the comparable sales for the 3 properties. They are definitely comparable and more recent, I sent two selling above and one selling at a lower value, I think I would sit somewhere in the middle of those.
     
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Best to send three higher if possible

    Cheers

    Jamie
     
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  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    You guys need to be aware that Valex is flagging duplicate valuations. Same property, same owner, etc and subsequent requests get cancelled unless you you can give them a good reason not to. Valuation shopping may be a thing of the past.
     
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  10. Greyghost

    Greyghost Well-Known Member

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    1. You had it valued only 2 months ago.
    2. Valuations can differ +- 10% every time.
    3. Most importantly it is an apartment, valuer a are very very conservative at present when valuing apartments, so your valuation reflects their sentiment at present.

    I see the val as fair and reasonable.
     
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  11. tobe

    tobe Well-Known Member

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    Yay. Not only do we have essentially the same calculator for most lenders, similar policy settings we now get the same valuation. Fantastic.
     
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  12. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    That seems like an odd thing for them to do - considering their revenue will drop as a result of it.
     
  13. BCR

    BCR Well-Known Member

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    Valuation was completed 14 months ago not 2 months ago. Low stock, low days on market.

    I would say based on sales activity and unique qualities of apartment that this is reasonable reflection of value nor is it accurate with market sentiment in the area.
     
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  14. BCR

    BCR Well-Known Member

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    Thanks for the heads up - Its worth trying this time. Happy to accept my BNE property has only moved 2% in 6 months. Am finding this one a little off tune though
     
  15. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    You are onto something

    Middle term I expect some ASIC influence here too.........

    Right now there is still some latitude between Valex VMS and some of the Mortgage Managers that allow directs and choice of valuer.

    ta
    rof
     
  16. dabbler

    dabbler Well-Known Member

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    Have you read any of the threads on apartments in the East coast capitals ?

    You do realise that they are only going to value at a level that would get a quick sale, not sit on it if the market turns. Not all properties have gone up a lot either.
     
  17. BCR

    BCR Well-Known Member

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    Valid points and do agree the valuer has a job to do - there is some reasonable disparity between 3 properties sold down the road though that were on market for less than 30 days (same floor size and selling between $70k - $100k more) Of course I will be biased however I think it's worth in this instance to shop around a little.

    The whole ESB unit oversupply affecting CG piece is limited in my instance, my property is literally surrounded by heritage properties & houses and is small block of 30 units 4 levels high - not the typical high rise apartment block
     
  18. dabbler

    dabbler Well-Known Member

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    I do not think it will matter, they will be thinking of area/s in general, and a unit is a unit. They also all must be, like many of us, thinking it has to stall or maybe even pull back soon.

    There was a pull back earlier, then picked up again lately, I really think many of them are being cautious.

    not much you can do besides hoping another valuer may see it different.
     
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  19. BCR

    BCR Well-Known Member

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    Yes agree, I've got NAB and Westpac valuers out there next week so will interested to see what comes through.

    Not expecting much difference - max $20k