not happy with valuation

Just suppose you were going thru a messy divorce and you wanted to buy your partner out, would you be happy with this valuation? well honestly would you?

BC

Hi Kooringal

In this current market, valuers are extremely busy and in carrying out a valuation will just look at recent sales which in most cases are in excess of 6 months old. This is a problem in a fast moving market.

To ensure you get the valuation needed, YOU have to do the homework for them; ie provide them with 5-6 recent comparable sales. Provide the address, type of property, sale price, real estate agent details and date of sale; ie provide COMPELLING evidence.

All this should be handed to the valuer BEFORE the valuation, they will be grateful for this and in my experience this almost always ensures that you will get the valuation you need.

There’s little point complaining after the valuation… the horse has bolted, although in some cases they can be persuaded to change their mind.

I think it would be worthwhile doing the above and then paying for another valuation. If it costs $300 to pull out the extra $80k that you think the property is worth, that would be money worth spent?!

All the best

David U

Kooringal

No probs. Real estate is essentially a game; play by the rules, you get what you want… Everybody is happy.

Also forgot to add, in putting together comparable sales, EXCLUDE any recent sales that will not benefit you; eg property a few doors down sold cheaply due to a distressed sale will NOT add to your case, so do not include it in your handout.

Once the valuer sees a clear pattern of sales and values, it’s generally a no-brainer.

Also ensure you put the RE agent contact details (phone no) who sold the properties, the valuer will phone them up to check.

All the best

David U

Kooringal,

Just one month ago we have moved from our PPOR and rented a couple suburb away. Therefore, we turn our PPOR into an IP. The tax dept also asked us to get a professional valuation to value the property for base value due to cap gained in the past. I am very happy with the price that I got from the professional valuer.

Here is how I did it and get high valuation price:

1. Must use local valuer as they know the area much better than other
2. Do a research in the area for the property similar to your with max sold value
3. Contact valuer and explain to him your situation tell the valuer what you think it worth. If the valuer agreed then go ahead with that valuer. if not try another valuer until you are happy with the valuation price and finally ask him to come and inspect your PPOR.
4. Prepare your PPOR as it is for sale, look clean and neat.

5. Be their when the valuer come to inspect the property. Point out the good point about your PPOR. Also tell him the house next door if any sold at this particular price.

6. Before he leave make sure ask the valuer what he think it is worth? and convince him to the value you want.

I think you should spend another $300 for a new valuation price.

Hope this will help.

Regards

Chandara

Hi guys,

Kooringal, while I sympathise with your predicament – I really do – I have to respectfully disagree with the method that Chandara has suggested.

Firstly, the valuer’s job is not to get the highest or lowest value for the client. The valuer’s job, and the valuer’s duty to the client, is to arrive at a fair and reasonable value.

Secondly, even if a valuer is “local”, wouldn’t he or she still have to do some homework in order to be satisfied with the valuation that you want? It’s a chicken and egg thing. You’re telling the valuer that you won’t hire them unless they agree with the valuation they want, but if they are to do their job properly, they can’t say yes without doing the work they would have to do to arrive at a valuation.

Thirdly, if there are in fact valuers who are willing to accommodate the method you described (ie agree on a value over the phone or without thoroughly researching comparable recent sales in order to get the job), then wouldn’t that degrade the integrity of valuations?

Don’t get me wrong – I totally agree with what Chandara and others said about getting the research done and providing written evidence, as well as doing your best to persuade the valuer to agree with your opinion on your property’s valuation. But it’s this “valuer-shopping” that worries me. One of the key causes for the finance brokers scandal in WA (where thousands of investors, many of them retirees and pensioners, lost their life savings investing on dodgy property development deals with pumped up valuations) were valuers who were prepared to compromise their integrity in exchange for getting the job. I’m not saying it’s going to come to this, but if more and more valuers started doing this kind of thing, the reliability and credibility of valuations will start becoming eroded.

That’s just my view. You obviously have the prerogative to adopt a different view.

Cheers
M

Kooringal,

I would reccomend getting another valuation done. I bought an investment property in april this year and the guy who done my valuation was totally un-professional. He thought he was there do sign off the final payment to our builder for our extension that we had just done. After I highlighted the fact he was there for a valuation he said he would return to do it properly. He didn’t and the Valuation was well below what it should have been.

I was a little upset as in the end I had to pay mortgage insurance due to the fact I was over 80% LVR. Even when I explained the situation to the bank they were more prepared to go with his valuation than hear my story even though I felt I was far more accurate.

Well 3 months later I am buying another investment property and the valaution on my house with nothing being done to it since the last valuation 3 months ago has risen by $45,000. This valuation was done by a different Valuation company but with the same bank – that is why I would go for a second opinion.

Carl

My experience with valuers is thay tend to be conservative. Possibly in-line with the financial institutions policy? (there is a history lesson here that I won’t go into) I would not say they roll-over to the lenders wishes but they do get work from them if you know what I mean.

So giving the valuer proof of the property next door selling for …. is factual and perhaps the valuer being between a rock and a hard place may give you a more accurate price, in your eyes at least?

So putting forward proof is not an attempt to get an inflated price and erode the ‘valuation system’, but it increases your chances of getting what you know is closer to the correct price based on your facts.

I suspect it still will be conservative though. lol

Regards
Tony