Valuation not accurate

Discussion in 'Loans & Mortgage Brokers' started by Patricia, 7th May, 2020.

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  1. Patricia

    Patricia Well-Known Member

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    We are in the process of refinancing and broker sent a valuer for our townhouse. Issue here is the valuer gave us the price (600k) of an even lower than the villa (605k) sold 1 month ago in the same complex.

    Should we tell the broker about this? We just borrow about 50% LVR, but not sure if this price from the valuer will affect us in the future?

    Thanks for your advice.
     
    Patricia, 7th May, 2020
    #1
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    A lot has occurred in a month. Val's will reflect that. Are you disputing 5k...lol. I would take it
     
    Paul@PAS, 7th May, 2020
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  3. Patricia

    Patricia Well-Known Member

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    Townhouse is valued better than a villa. If a villa was sold at 605k, I would expect townhouse in the same complex to be sold at 630k at least. Not to mention we just upgraded our garden area with 70 sqm of pavers.
     
    Patricia, 7th May, 2020
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    If you are borrowing just 50% it should have no effect on the loan
     
    Terry_w, 8th May, 2020
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Have I missed something? I've been in lockdown for about a month and a half. :rolleyes:
     
    Scott No Mates, 8th May, 2020
    #5
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Your broker will know

    Is the low val relevant to your outcomes ?

    If yes, a valuer shop may solve this

    ta
    rolf
     
    Rolf Latham, 8th May, 2020
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  7. Trainee

    Trainee Well-Known Member

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    If you think its 630k and you want to borrow 315k. It vals at 600k and you can borrow 52.5% (315k).

    Does it matter? The valuation is not part of the sales records. Valuation should be what the valuer thinks it would sell for now, and its pretty crazy out there ‘now’.
     
    Last edited: 8th May, 2020
    Trainee, 8th May, 2020
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  8. Lindsay_W

    Lindsay_W Well-Known Member

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    Nope, valuations aren't valid very long, typically 6 - 12 months max but you're certainly not the first person to think their property is worth more than what a valuer says it is :)
     
    Lindsay_W, 8th May, 2020
    #8
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Valuations don't affect price you can sell the property for. The only ones that know the amount are the valuer and you and the lender.
     
    Terry_w, 8th May, 2020
    #9
  10. Stoffo

    Stoffo Well-Known Member

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    Everytime I've requested a valuation as part of borrowing for another purchase I have never been told the determined value :oops:

    As I have paid for it I have requested a copy from the bank, and when that didn't happen the valuer directly, only to be told that as the valuation was organized by the bank the valuer couldn't disclose and the bank wouldn't disclose as they weren't required to :confused:

    So you are fortunate to have been provided this info :cool:

    The valuer has clearly put in a very small buffer :p
    Considering the current recession, Covid-19 and the very uncertain economic future for the next 2+ years (possible depression) it could have been a 15% buffer :rolleyes:
     
    Stoffo, 8th May, 2020
    #10
  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Brokers can order them and receive and control them. Prob not supposed to give them out though
     
    Terry_w, 8th May, 2020
    #11
  12. Patricia

    Patricia Well-Known Member

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    I have been provided with the valuation reports not once. My friends have the information when they refinance too. Those reports from the brokers and mobile lenders.
     
    Patricia, 8th May, 2020
    #12
  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    If its a concern for you, vote with your feet

    ta
    rolf
     
    Rolf Latham, 8th May, 2020
    #13
  14. New Town

    New Town Well-Known Member

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    An agent friend says valuations are coming in we'll below purchase prices.

    Have your broker shop around with different lenders if required
     
    New Town, 9th May, 2020
    #14