Valuations in current market

Discussion in 'Loans & Mortgage Brokers' started by Synergy, 1st Jun, 2020.

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  1. Synergy

    Synergy Well-Known Member

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    Looking at getting a 2nd IP.

    Since the media is saying 30% decrease in property value recently, I guess its a bad time to get a valuation of ppor and first IP?

    Or would you guys just go ahead and try?

    Is getting a valuation a step forward in the right direction for buy ing 2nd IP?
     
  2. Thomacino

    Thomacino Well-Known Member

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    Firstly, forget the funny papers.. I haven't seen any property prices in Sydney drop as much as the predicted 30% drop.

    Depends on the purpose of the valuation.

    Chances are you're intending on leveraging your PPOR then its for mortgage security purposes and the PPOR valuation is dependent on the valuer, available comparable sales evidence that have occurred in the area in the last 3 to 6 months.
    For instance your neighbour's property sold for $1m and your property is more or less similar to your PPOR then the valuation will come in at $1m.

    In terms of direction i.e. steps, speak to your broker/bank. Afaik it doesn't cost money for your broker to initiate a valuation on your PPOR which will give you a clearer position re LVR and other factors.
     
  3. Hetty

    Hetty Well-Known Member

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    Did a valuation a few weeks ago and came back much higher than I expected. Both ANZ and Macquarie came back with the same figure.
     
  4. Canyon

    Canyon Well-Known Member

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    Same here. 3 properties in Melbourne. CBA desktop valuations each came back $100-$200k more than what I think they are really worth. The valuer just went with my highly inflated estimates which was surprising! This was for a refinance.
     
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  5. Thomacino

    Thomacino Well-Known Member

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    I've done valuations for the same property for 3 different banks, luck of the draw I'd guess.
     
  6. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Getting a valuation wouldn't hurt you. Especially when it's an upfront Val and it's for free.

    Youd rather do it now then do it in the next 6 to 12 months when it drops.
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Valuer shop via a broker will ease the concern

    Most banks direct arent keen on upfronts because it doesnt suit their sales process

    ta
    rolf
     
  8. ChrisP73

    ChrisP73 Well-Known Member

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    What are Macquarie like for revaluations? IP purchased July 2019, Brisbane inner/middle southeast, approx suburb median price.
     
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Like any bank :) Luck of the draw of the panel valuer.

    Im 99 % sure their desktops arent done in OZ, because some of the drivel that comes back is amazing.

    Recent one was a equity pull loan for existing Mac loan.

    Place was a KDR 2 years ago.

    Deskie came back with Pics from 10 years ago - a 30 second incursion into Google Maps would have added 500 k to the val :)

    ta
    rolf
     
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  10. ChrisP73

    ChrisP73 Well-Known Member

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    So what's the recourse then, can you request a site visit or challenge with additional data?

    Also, any scope negotiating a bit off their fixed rates. I managed to get 10bps off cba 3year recently for a sub 500k loan, so wondering if about experience with macq in this regard
     
  11. Thomacino

    Thomacino Well-Known Member

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    You can't challenge a desktop assessment because its a 'desktop'. If you want accurate valuation report, best to request a site inspection.

    When the val amount is below what was expected, the job gets escalated to a shortform (internal inspection).
     
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  12. ChrisP73

    ChrisP73 Well-Known Member

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    Thanks, that's the clarification I was after.