Online Valuation variances?

Discussion in 'Property Finance' started by TomRK, 10th Oct, 2016.

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  1. TomRK

    TomRK Member

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    Hi All,

    just wondering if anyone had noticed the differences between property valuations on different websites?

    For my 1bdr in Top Ryde, Sydney;

    real estate.com 550k - 690k
    on the house.com 430k - 525k (477k)

    is it a case of different providers having different agendas (ie realestate.com would want to encourage an owner to sell?)

    Cheers, Tom.
     
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  2. gman65

    gman65 Well-Known Member

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    REA valuation within 25% ? I could throw a dart at the wall and get a better indication than that.. :rolleyes:

    OTH not worth the electrons it is printed on. I believe they were winding up their public site anyhow? Data seems to becoming more and more out of date.
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Why do you need a val? Depending if you're looking to buy or get equity etc, speak to a broker and they should be able to hook you up with something to help.
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Most of these vary between WFG and NFI. None of them are worth much unfortunately.
     
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  5. TomRK

    TomRK Member

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    Understood, thanks guys.

    Hi Jess, Will certainly be doing that.

    Cheers, Tom.
     
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  6. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Free online valuation tools like those are just fluff which are very basic as they need to cover a broad spread of properties across Australia. They may give a very basic understanding of what a property can go for, but for the most part are of little value to anyone trying to extrapolate from the figures.

    As Jess has said, get a broker to issue a valuation on the specific property, that will be a lot more telling and valueable in terms of showing accessible equity available.
     
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  7. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Generating which type of val & when is an art-form in and of itself that a savvy broker will understand simply through experience, holistic thinking and trial and error.
     
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  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I wouldn't rely on them at all.

    Even some lender desktop vals will vary dramatically from bank to bank.

    Jamie
     
  9. L3ha7

    L3ha7 Well-Known Member

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    If one has done some small work in the property , does the updated valuation will reflect that if I organise from bank/broker?

    Thx in advance.
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    If it's a desktop, no.

    If I go to two Accountants, lawyers, valuers, engineers or other professional, I also get three different answers. First world problem (there are too many professionals).
     
  11. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Not if it's a desktop - but desktops sometimes can be more generous than a real one, so it's not always helpful to order a full one, even if reno's have been done. It depends why the val is required - do you need cash out? Is a PPOR turning into an IP? Are you substituting a security? Do you need to move lenders and have the val reflect 80% to avoid LMI? Lots of reasons for ordering vals, and what we do for each is different.
     
  12. Redom

    Redom Finance Strategist Business Plus Member

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    If it means anything, it’s not uncommon to see desktops outside a 10% bandwidth of each other too. It’s a bit funny and doesn’t make too much sense, as they technically pull from the same data source (comparables) and its a algo from there, yet there’s wide differences in results On the same property.

    May be best to order multiple desktops if eligible/option exists.
     
  13. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    I have seen the ANZ val tool give different outcomes when a unit is selected over a villa and vice versa.

    Also the CBA desktops have spat out different figures a week later for same property.
     
  14. L3ha7

    L3ha7 Well-Known Member

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    Thanks @Jess Peletier

    I wanted to see for myself where do the property stand. I tried domain, commbank,on the house and some others and no consistency whatsoever and the price range is too wide and vague.

    Anyway, no dramas.
     
  15. Lifeinonemotion

    Lifeinonemotion Member

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    Valuations are an art, not a science :)
     
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Valuers would argue vehemently

    Objectively, most purchases are NOT valued, and a large chunk of refis are simply auto valued or desk top val at best.

    that says to me, we are moving into more AI style data rather than science or art per se

    ta

    rolf
     
  17. Tom Simpson

    Tom Simpson Well-Known Member

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    If you need real figures a broker is the best place to go because they'll be able to select the best type for your purpose. As Jess said, it depends on why you need the val. You don't want to order 1 type of val and shoot yourself in the foot.
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

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    When the market got to pot and the vals that the banks have relied upon are fiction (sorry WFG based on AI algorithms) the next Royal Commission will ask "why?"
     
  19. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    On a large enough sample, data beats humans EVERY (almost) time .

    ta
    rolf
     
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  20. Scott No Mates

    Scott No Mates Well-Known Member

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    @Rolf Latham however the only times that the issues will arise will be when funds achieved by sale of foreclosures fails to clear the mortgagor's commitments ie borderline compliant loans (no LMI) with optimistic automated vals.