Hi y’all,
Is there really any advantage in having my own valuations done as the banks Valuations are generally considered conservative?I am refinancing setting up a L.O.C. with ANZ to use as deposits on new property investment this year.The bank says thay will not consider valuations i provide even though i am using their Panel of Valuers.They say why not get my own Vals and they will compare, (though they will more than likely go with the lower)I say what is the point? Anybody with some experience or ideas?cheersHi Benderfile,
I always commission my own val from a bank panel valuer and include it with my application for a loan. I explain to the valuer that I need the val for a loan and do my research re which loan product at what bank I intend applying for whilst the val is being competed. When it is completed I tell the valuer which bank I want the val assigned to.
I meet the valuer on site and have a folder prepared for him which includes comparable sales details, features of my property, the title, planning certificate and a location map on which I highlight all relevant local facilities such as shopping centres, schools, transport, child care facilities, sporting facilities, parks etc.
By taking this approach I have never had a bank not use my valuation and I have never had an application refused for the type or amount of loan I was applying for. If you are having difficulty with one person in one bank on this issue, try another branch of the same bank or another lender. By approaching a bank with your own homework done and your own valuation you are showing the bank that you know what you are doing. Therefore if one bank does not value your custom it won't be long before you find one that does.Cheers
Thanks JaneS,
i will try speaking to another branch, your methods seem sound, it is what i am trying to implement.Do you believe you get a higher valuation this way?cheersBender
Get your Broker to organise the valuation for you and you supply the valuer with the mentioned information.
They will only use their panel valuers and you do not get to choose who that is but at least as long as the valuation is
a "Fair Market Value" valuation who should be ok.We organise them for clients all the time so as mentioned your Broker should be able to do this for you.
Richard Taylor | Australia's leading private lender
Hi Benderfile,
Yes, I find I do get stronger valuations by instructing a valuer myself. Generally speaking for spending about $450 – $550 for a val on a residential property I will achieve a val about $30,000 to $50,000 higher than leaving it to a lender to instruct. When one achieves an 80% LVR, the expenditure of $450 – $550 for the val provides a loan of $24,000 to $40,000 higher than leaving to the lender, not a bad return on the price of the val!
Cheers
Hi JaneS,
i have spoken to ANZ financial section, they say they do not influence the Valuer in any way, but that is not what i am hearing, you obviously believe otherwise.Also what price property are you basing the 30 to 50k amounts on eg: a percentage of how much more you believe can be achieved this way?cheersHi Bender,
Generally I believe I achieve a val that is about 5% better. I had a loan approved last month where, by instructing the valuer myself, I received a val of $700k. I ended up with an excellent rapport with this valuer and in conversation after the event he gave me to believe that under bank instruction he would have valued the property at $650k. I carry out enough research to reach my own opinion of what a property is worth and then set out to obtain the loan amount I need to meet the financial goals I have for the property. Instructing a valuer myself is part of my strategy of eliminating the risk that a lender will not lend me as much as I have calculated I need to borrow as part of my plan. I use a finance broker who is an active property investor and who works in a similar fashion.
Cheers
Hi JaneS,
Thanks it is sounding like it is worth the effort!cheers
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