Valuation question

Gav,

I have found that regardless of who you get to do the valuation the bank (one of the major ones anyway) will insist on doing there own. Typically they won’t rely on a real-estate agents view because they know that they over inflate anyway.

Maybe you could contact someone from the Australian Property Institute (Valuers Institute). The bank may respect there result more.

I would be very wary on trying to overvalue the property to begin with as its adding greater risk overall.

Another think to note is that the bank will typically not include the full amount at which it is valued in the calculation as to how much you can borrow. For example if you had a house valued at $100,000 the bank could likely only say its worth $90,000.

The reason for this is because if you were to do a runner or go bankrupt the bank estimates that there will be approx $10,000 in fees and other charges.

Hope this isn’t too much info,

Nigel.

Gav

You could find out who the bank has on their panel and get it done yourself, but there is a danger that the bank will reject it. It works with some banks though. Also when you do get your loan application in, you should have the bank get the valuer to ring you to arrange access. That way you can meet them onsite and show them any comparable sales and research you have done. Basically talk up the price a bit. Also ask them what you could do to the property to make it worth more. eg if I put in a carport, have much would the value go up? etc

Terry