Can anyone pls explain the difference between a "fair and open market" valuation as opposed to what other type of valuation a bank valuer would give??
I recall at a seminar the speaker suggested when ordering a private valuation, to ask for a fair and open market val, that should work i favour of the person ordering it, not the banks, yet the bank should accept it (if the valuer is on the banks panel).
Please explain the reasons and confirm if this is true??
Thanks.
There certainly can be different valuations, and I have a property on which the "valuation for mortgage security" purposes is significantly below "market value", therefore I've had to keep much more equity in it than I'd like
This link is somewhat helpful to we novices in understanding valuation a little better: http://www.independentvaluers.com.au/content.asp?pid=1746
in my opinion, simply a valuation is a valuation, it is simply a number written in ink on a valuation report. yes, you would think that if you ordered the valuation and used a valuer that was on the lenders panel (i am in qld so it would only be valid for 90days….other states could be different) it would be accepted, but not always the case. happy to offer you an idea for your next investment purchase. put a clause in your contract to state that 'whatever' the valuation is, you decide if it suits you, if not dont proceed………allows you to control the purchase. hope that helps
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