Online Valuation variances?

Discussion in 'Loans & Mortgage Brokers' started by TomRK, 10th Oct, 2016.

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  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Yup

    Again, which statistically would be rare, on an average foreclosure.

    Id much rather hold a security with an 80 % lend, where the val is up and out by 5 % and the value has dropped 10, vs a 95 % lend with a "human" val ( which varies by 5 to 8 % often) and a 10 % drop

    One provides exit cover, another leaves the lender high and dry and reliant on an LMI provider. If there is a significant collapse like that in the broader market.......... there are bigger reasons than desky vals.

    80 % or so of purchases dont go through any vals process..................



    I dont think thats going to be an RC issue per se in the future , more so APRA.



    ta
    rolf
     
    Rolf Latham, 10th May, 2018
    #21
  2. Ben John1

    Ben John1 Well-Known Member

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    how about the "statement of information" provided on realestate.com is it reliable?

    or how about RP Data?
     
    Ben John1, 13th May, 2018
    #22
  3. hieund85

    hieund85 Well-Known Member

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    SoI is often misleading esp in a rising/hot market. It is based on 3 comparable sales in the last 6/12 months. From late 2016 to 2017 in Melbourne and in particular the Western suburbs of Melbourne that I followed, 95% of the houses were sold at auction for at least 5-10% higher than the top price shown in the SoI.
     
    hieund85, 14th May, 2018
    #23
    Ben John1 likes this.
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