Dear fellow investor,
just wondering whether is it in our right to request copy (hard copy) of evaluation that bank has done on behalf of us? i found it very hard to believe without evidence and it is in our nature to just follow what bank told us of what the property might valued at. How has others experience in this matter?
The valuer is a consultant to the bank. There is privacy of contract between the bank and the valuer and although the bank will in most cases divulge the amount of the valuation it will not produce a copy of the valuation. As the bank has engaged the valuer, it is only the bank which can rely on that valuation unless the valuer extends the valuation to yourself (or some other interested party).
You should be aware of the brief that the bank has provided to the valuer and understand that a valuation for mortgage purposes is not a market valuation as a sale which is forced by the bank does not meet the principle of willing buyer/willing seller hence the valuation reflects a price which is indicative of what a distressed sale may generate.
Thanks for the input, i am just sure i heard in on of John L Fitzgerald seminar that it is in our right to obtain those copy hence most of evaluation done by the bank is at client's cost anyway.
In my point of view evaluation is one of the key to your investment property, if you can keep track the growth of your property's price it is easier to structure your loan especially in re-financing so you have enough money to buy another property.
That is why it is necessary to commission your own valuation and to provide specific directions to the valuer – ie you require a valuation for "sale" or "mortgage" or "insurance & replacement" or "sub-divisible interest" or "market rental" or "reversion" or "compulsory acquisition" etc. Each has its own specific methodology.
I never had a problem obtaining the valuation from the bank.. Just ask
As I have pointed out, unless the bank has requested that the valuer also extend the valuation to yourself, you have no comeback against the valuer should you sue them for a fault in the valuation or should someone sue you in respect of the information that you have provided to them eg another financier.
Thanks for the thought guys…. Yeah I did try and ask but the bank say it is in bank interest to keep it discr
eet for bank purpose, my brooker told me that certain bank we can challenge their evaluation with our own. I might wait for this another lender on what figure do they come up with.With some lenders your Broker can order the valuation and then he can always show you a copy.
Very few lenders will accept an alternative valuation report unless it is from a valuer that is a Bank panel valuer.
Richard Taylor | Australia's leading private lender
Hi there,
Ive bought 2 properties in the last 4 months. The CBA bank took forever to get things sorted, but finally it all happened. The one thing that intrigued me was that on both occassions when I asked about the valuations, they said it was valued at EXACTLY the same amount of the loan I was applying for……
In both instances the people living in respected properties said no one came and had a look at the homes. On one of the properties I was told all the bank does is 'a drive by'. Im actaully having both properties now professionally valued ( for depreciation purposes) so it will be interesting what they come in at.Neety
Your Quantity Surveyor will not provide you with a registered valuation as he is not licensed to do so and only a registered valuer can perform this service.
It is common these days for Banks and lenders do either do a full valuation, driveby or even used computer operated systems like Australian Property Monitors to carry out their appraisals.
Remember in most cases they cover the valuation cost so get to choose what risk appraisal steps they take.
Richard Taylor | Australia's leading private lender
That is the point that I try to make here that most lender value the property on the safety level (considering the risk etc) but without the copy of evaluation disclose to the client it is make it harder to structure or planning our goal with the investment property. For most of us CG is very important and that is one of the key to obtain deposit to further our investment level. Afterall they are the lenders and I guess if we are not happy then just have to switch to another. Thanks
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