Hi Guys
I am using the following online valuation tools and i’m finding dramatic variation on property’s across the three..
onthehouse, domain property reports & “property value” by core logic.
Some variations between onthehouse and property value are 100k on the same property.
Looking at my PPOR that recently had valuers visit it and place two valuations of 570k & one of 590K, domain property report is on the money with onthehouse very close. Property value has it at what we purchased it at two years ago.
I am looking at a property that I am getting 70k variation across the valuations. the lowest has my offer 10k higher than valuation & the highest 58k above my offer. I have researched the aria well and i’m happy with the buy, it is very tidy & cash-flow positive with a couple of value adding options. I just want to be more confident in the value.
When I refinanced my PPOR there was a large variance in value. Is this normal?
Can I just get my broker to send out the valuers to the IP in 6 months and expect another wide range of numbers and just go with the highest for a refinance to go again?
Cheers
S
Hi Simon,
Can I just get my broker to send out the valuers to the IP in 6 months and expect another wide range of numbers and just go with the highest for a refinance to go again?
WOULDN’T that be nice !! :p Unfortunately there are or two points that you need to consider.
When wanting to have a property valued to be able to withdraw some Equity, it is a whole ‘nother ballgame. You are getting a “valuation for Finance” and not just a “market appraisal” (as per onthehouse, property value, or similar).
If wanting to redraw Equity, you would either be limited to re-using your current lender, or you would need to go for a complete re-evaluation with a different lender – with associated Application Fees, solicitor’s fees, etc, etc. So not quite as easy as first thought.
What WOULD be a good idea would be to connect with a good Mortgage Broker if you haven’t already. This kind of “dance” becomes a lot easier when you have someone on your side who knows all of the rules !! ;)
Benny
Hi Benny
Thanks for that, I do have a broker who unlocked 50k in equity from my PPOR through a refinance as my bank (NAB) was telling me the house was still valued at purchase price two years earlier. I am quite aware of the market in my area & I knew they were just being lazy / extra conservative. I had bought well & the aria had 7% increases both prior years, though this did not reflect on RP Data which I am quite sure is where they did there”research”.
My broker had three appraisers come to the property, two valuations came back at 60k above my bank & one at 80K. These variances are also reflected across various online tools. This is what I am getting at.
Valuations for my PPOR came back from various lenders at the following numbers 1x 510K (NAB), 2x 550k (desktop valuations) 2x 570k & 1x 590k. The last three visited the property. Property was “as purchased”
When I initially spoke to the broker I stated “I am not looking for a better rate, I am looking for a good valuation” Of course we looked at rates but I was clear that was not my primary focus. They delivered :)
I am seeing the same wide range of prices on the online tools looking at a potential IP that I had with my PPOR, including a low valuation on RP data even with the area performing very well the last two years, the last three months 6% increases alone.
The rules, as I have seen them played out over the last 8 weeks is get the broker to send in the valuers. Some refinancing fees were well worth the reward I feel. The reduced rates alone was worth the refinance, the equity was the cheery on top.
Cheers
S
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This reply was modified 7 years, 9 months ago by
Simon.
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This reply was modified 7 years, 9 months ago by
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