We bought our house 16 months ago for $185,000 and have spent $40,000 renovating the property. The house has been valued by the real estate agents to sell around the $260,000 mark. We have just had the property revalued by St George for only $235,000 and rental appraisal of $225 per week.
I know I can sell the house tomorrow for $260,000 and rent of atleast $250 minimum. We live in Toowoomba- 1 and half hours west of Brisbane and the market here under $300,000 is HOT!!!!Has anyone else noticed that property valuations are extremely under done at the moment?
The loan total is $215,000 and we are on a no deposit quick start loan- this enabled us to utilise the $7000 FHB grant when we bought the property. Could we get the property valued by another company and submit that to the bank? or do the brokers have any other suggestions?
I hope this all makes sense!!!!
Jason
Regretfully no you dont have much choice as the Dragon has it is own panel of valuers and in Toowoomba this will be limited.
I guess the valuation is only an issue if you need to access the equity and if not well is probably not an issue for the time being.
Remember there is a big difference between an open market valuation and a valuation for Bank purposes.
Richard Taylor | Australia's leading private lender
I’m not sure what you can do in that situation (maybe someone else could help?) But its an excellent thing we you can roughly value your own property to see if the bank sounds right..
well that is the problem- we are looking at making our next move to buy a block of land and then build on it the next 6 months.
I'd swap your scenario in a heart beat – our bank valuation came back $15k less than what we paid for it 2.5 years ago and we sunk $50k into reno's.
Furthermore, a few weeks later we had a cold call from a local real estate agent for a client who was interested in the property (it's not for sale) offering $50k more than the bank val.Thanks Richard, a market valuation for sales purposes and a bank valuation for mortgage purposes are two totally different things (with different outcomes). Likewise the REA can only give a market appraisal (there is a less stringent criteria on REA) hence the higher numbers (more a sales pitch and reflective of his opinion of the market).
If you did appoint a valuer to determine market value, you may be able to get the banks valuation revised if there was a large discrepancy between the two valuations (but the vals should be for the same time eg march 09).
Do the valuers purposely value the property below market value, or are they simply being cautious?
Do you think it would help if you provided the valuer with recent sales history and also politely mentioned you are going to get an independent valuation to compare. Would this entice the valuer to be more accurate, or simply aggravate him/her and probably get an even lower valuation?
I have been told a valuer walks into a property with general "instructions" from the bank on how to value a property. So the same valuer could provide different valuations for the same property, depending which bank the valuer is acting for. Does anyone know if this is true?
Hi Guys am in the same boat….. i am thinking of getting a suburb recent sales report that is likely to cost 50 odd bucks before engaging a pvt evaluer and pay him approc $500 for the valuation…. i have heard rp data reports are good… any suggestions?
At the moment at this point of reccession the prices have crashed down.
Why dont yoou stay put for some time till the things go well.
G'day jaglions,
There are few things you could do if you aren't happy with your val…
1 get another val. But before you do spend a weekend spruicing up the place eg. mow lawns, new mulch on garden beds, water blast drive way, wash marks off the walls, vacuum, etc. Present your house as if you were selling it
2 do your own CMA and give this to the valuer. RP Data's great but always a couple of months old so back it up by talking to a few local agents aswell and see if they'll give you some more recent comparitive sales to work with. They should be more than happy to help
3 get your banker or broker on your side and have them talk to the valuer to persuade them to be a bit more leanient. I did this with my last val and got an extra $10K out of em
4 was your REA appraisal in writing? If not get it in writing on their office letter head and give that to the Valuer.
At the end of the day a val is really just an opinion and opinions are flexible. The banks are clamping down at the moment so it's now alot more important to ease their minds as to the risk they'd be taking by lending you more money. Having your finances in good order can also help with your val as it helps to limit their risk. You need to look at it from the valuers point of view aswell as the banks and then look at how you can solve their proplem with giving you the val you want.
If anyone's got some other suggestions id love to hear from you for my own valuation purposes, cheersGood luck jaglions
I have just been told by the bank to not even bother getting another valuation as they WILL NOT listen. There are massive number of defaults occurring and they need to tighten policies. Come back in 6-12 months
we had the same problem when getting our house valued for a loan. what i did was supply a list of every house for sale in the area going for the price i valued it at and also a list of the rents going at that price. it was current info and they asked him to look at it again. it came up trumps. i also got 2 agents letters stating what the estimated rent would be. I ended up getting $15 a week more than the estimate and almost instantly.
if u think your right dont just sit there.. get them to relook or change lenders.
You all seem to be missing a very big point ….. It's the banks money, not yours, and they are not obligated to lend you anything just because you have lodged an application.
No point bitching about valuations, property prices have moved and your strategies have to move with it.
jaglions wrote:The house has been valued by the real estate agents to sell around the $260,000 mark. We have just had the property revalued by St George for only $235,000 and rental appraisal of $225 per week. I know I can sell the house tomorrow for $260,000 and rent of atleast $250 minimum. We live in Toowoomba- 1 and half hours west of Brisbane and the market here under $300,000 is HOT!!!!You know what you should do ? You should become a valuer and value your own house at $500,000 instead of that lowly $260,000. You would be making $240,000 in a single day.
I don't understand why not everyone who has a house just values their own house. And while they're at it, they might as well value it at $1,000,000 , so they can buy more homes for $185,000, and value all of those at $1,000,000 each !… after all , everyone knows that they will sell their homes for the price that the valuation came to , right ?
jaglions wrote:We bought our house 16 months ago for $185,000 and have spent $40,000 renovating the property. The house has been valued by the real estate agents to sell around the $260,000 mark. We have just had the property revalued by St George for only $235,000 and rental appraisal of $225 per week.
I know I can sell the house tomorrow for $260,000 and rent of atleast $250 minimum. We live in Toowoomba- 1 and half hours west of Brisbane and the market here under $300,000 is HOT!!!!Has anyone else noticed that property valuations are extremely under done at the moment?
The loan total is $215,000 and we are on a no deposit quick start loan- this enabled us to utilise the $7000 FHB grant when we bought the property. Could we get the property valued by another company and submit that to the bank? or do the brokers have any other suggestions?
This is also happened to me. My IP house should worth at least $275k. I try to refinance and the bank came up to me with only 245k. I asked my mortgage consultant, and he said that the bank want to be very safe (especially in recent situation). So they have a tendency to under-quote the valuation.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
