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Valuation coming under

Discussion in 'The Buying & Selling Process' started by jins13, 12th Sep, 2016.

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  1. jins13

    jins13 Well-Known Member

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    Hi,

    Apologies in advance for doing this topic to death.

    For myself, having experience with the vals coming under the contract price for properties in NSW. Is this the norm for all investors at the moment with valuers being conservative? And yes, have disputed vals and provided comparable properties that settled, which were comparable homes but to no avail.
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Not so much for established - but can happen for OTP.

    Just had a VIC OTP come in $100k lower :-(

    Cheers

    Jamie
     
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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I haven't seen a purchase come in lower for as long as I can remember (which generally is the past 24 hours).

    Often happens with refinancing estimates though.
     
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  4. jins13

    jins13 Well-Known Member

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    Thank you Jamie and ouch $100k under!

    Maybe I am unlucky as the properties (established homes) I am interested in are coming under by $30 to 50k from the contract price. I don't mind $10k off the contract price but having that much differentiation is killing me.
     
  5. jins13

    jins13 Well-Known Member

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    Actually had a go at one of the val company and informed them to sent out a professional to do the val and not an intern or a kid who is new in the job.
     
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  6. Brady

    Brady Well-Known Member

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    Just had a H&L package come back $63k short.

    When you say you provided comparables why were they ignored, I've never had a issue with challenging a valuation when there are genuine comparable sales. Worst case can usually request an secondary valuation from the same bank from different company.
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    This won't help your cause! You have to be professional too.
     
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  8. jins13

    jins13 Well-Known Member

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    Tried that approach first..... with comparable sales in the area. They used last year's data and one April figure.
     
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    That's ok then! Nothing to lose.
     
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  10. jins13

    jins13 Well-Known Member

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    I never had this issue as well before, but for some reason, they just refused to accept or adjust their figure.
     
  11. Brady

    Brady Well-Known Member

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    Who's the bank? What's your banker/broker had to say about it all? They can't just ignore comparable sales when a dispute it lodged, need to give reason why they're not deemed comparable.
     
  12. jins13

    jins13 Well-Known Member

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    Liberty and the broker is a renowned fellow in SS.
     
  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    That explains it!
     
  14. jins13

    jins13 Well-Known Member

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    Please explain and btw l am not a supporter of Paulie
     
  15. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Liberty is considered a lender of last resort. More risky for valuers...
     
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  16. jins13

    jins13 Well-Known Member

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    Thank you terry and was advised the generous and competitive rate of 4.99% became 5.83%.
     
  17. jins13

    jins13 Well-Known Member

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    Hopefully my next val is going to be on the contract price and can allow alittle variation. Fingers cross!
     
  18. MTR

    MTR Well-Known Member Premium Member

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    Depends what OTP product it is

    When we mention OTP product that is higher risk I think its apartments where there is an oversupply.

    MTR:)
     
    Last edited: 21st Sep, 2016
  19. RetireRich101

    RetireRich101 Well-Known Member

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    I hear this a lot from Lenders "we don't have much influence on the report that was handed down by the valuer"..... the comment above implies Lenders do have a direct/indirect influence on the valuer? Maybe the valuer 'knowingly' that Liberty is a conservative lender.....
     
  20. House

    House Well-Known Member Premium Member

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    What was the reason for this?!!

    Even their comparison rate is 3.86% now.