I am in Perth and recently had a very low val come back on my house. Unreasonably so even considering past sales albeit a small no. of them.
Is it just in Perth due to the local market or is it across the board and possibly due to lenders being wary of serviceability etc with increasing interest rates?
Im so gutted!
i really want to do some further investing.Who did the valuation? Your bank or a registered valuer? I know that we had a valuation with one bank, Westpac, some time ago and the valuation came in at $850,000. Based on these figures, they wouldn't loan us the money we wanted to buy another property. However, the ANZ bank valued it at $1,000,000 (shortly thereafter) which was enough to allow us to do what we wanted. Perhaps you need to try another bank.
Jacqueline
hi Hybrid. Sorry to hear. Valuations may be getting done a bit on the conservative side it may seem, and yes there will be differences between some lenders/valuers, although usually not that major.
What you may not be aware of, is that some similar properties nearby may have sold cheaply, or been 'firesaled'. It always amuses me when people say, 'I just got this great $500k property for $400k!. ' Unfortunately, unless you sell for $500k or hold for long term, it is only worth $400k, because that is all you paid for it, and that is how most valuers justify their figures – base purely on comparable sales.
THat said, a second opinion , whether via another lender, or an independant val (ie paid valuation, not apprasiel from an agent)surely will not hurt. All the best.wow Jackie that is a huge difference between the banks. Gives me some hope… I asked my broker what they thought of trying a different lender. They said that it wouldn't make any difference.
The valuer was Ray White Valuers in Perth, for Aust Central credit union. Plus i hate to say this but i had a gut feeling it was going to come in off the mark after they sent a nervous young recruit to do the valuation.
I was to rethink, plus haven't asked broker the question but are they going to charge me for the val if i dont go ahead with them?
Hi Hybrid ,
Banks usually have a list of valuers they use . You can ask who is on their board of valuers and try another valuer . (will cost ) .The banks sometimes won't be too happy to do this . If you have supporting evidence as to what the property is worth it can help . If you can be on site at the time of the valuation it can also be worthwhile .Some valuers are very cautious particularly in circumstances like now. My experience is that Herron Todd White are very conservative . As v8 ghia said you could get your own valuation but using a valuer on the banks list .( they can't argue with that )
Rodeo
does anyone know if when valuing an investment property they take into account the rental on it? Because this valuation was done on my own home i think i missed out on the accuracy.
I have an investment property that i believe is valued at about $200k+, it is rented for $180pw. The yields in Geraldton are around gross 4% (if not less) now so working off that it would be valued around $208k.
I might just take that route if it could work better, means i get access to more equity than with my current home val.
Hi there,
I am also in Perth. What suburb are you in and which valuer did you use. I am looking to get a valuation done soon and I know some pockets are not doing as well as others. Maybe if I choose a different valuer and get a better result I can let you know who I used, Otherwise if I get a low Val as well we will know it is the market.
Nat
Just a couple of points – price and value are not the same thing ie you can buy a property which due to a number of factors you have paid a lower price however its value is intrinsically higher (eg sale between related parties, distressed sale etc). Valuers in preparing their valuation for the banks (or other clients seeking CMV) have to assess comparable sales using the most recent/reliable data available ie completed sales not those which have not settled, not 'out of line' sales or other sales which may skew results – this has a tendency to lag behind a rising market and be higher in a falling market so that adjustments are made according to market sentiment, current conditions etc.
In answer to your question hybrid, yes and no. If you are talking residential property it is generally not the case – as tenants & property managers are such variable beasts two val methodologies are used: summation and direct comparison (DC being the primary method) and S as a check method. Eg a 5 bed house rented to 5 students would have a higher combined rental (and require more intensive management) than say leasing the same house to a large family.
In commercial/industrial/residential/special premises the methodology used revolves around the analysis of cashflows (capitalisation of net income) ie net market rent based on the zoning and permitted use.Hi Nat the valuers the bank used were Propell Valuers – formerly Ray White Valuers. I wish you well with your valuation. Would be interested to know how you go.
formerly known as Ray White Valuers
i really want to do some further investing.
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