Just wondering if anyone knows whether different property valuers generally come up with close to the same results or is there a wide variation. Is it worth getting second or third valuations done? Do independant valuers come up with different results to those appionted by the finance company? In my case the bank’s valuation was much higher than I expected and I’ worried that when/if I want to refinance/change lenders/use equity that a second valuation won’t be so generous. Not that I’m complaining and I’m not actually about to pay for an independant valuation but I’m just curious as to how accurate these valuations are.
Regards
SonjaFrom my experience the valuations are usually a bit under what I’d expect to get ie: the last house I sold was valued at $235,000 by the banks valuer but sold at $250,000. (I guess if you take out cost of selling then it’s about right).
Regards
PKHi Sonja,
Property valuations can be significantly different – and can be influenced by a range of factors; valuers understanding of the current market state, how comparable the comparable properties are, their level of due diligence and research, the recency of comparable sales and the level of experience of the valuer – to name but a few.
Valuations are not as scientific as some will have us believe and I have seen (and experienced) considerable variations on my own home valuations.
Once a lender has sighted a valuation – you will usually have a great deal of difficulty getting them to accept a higher valuation. It can be done, and is more likely to succeed when you have a broker working with you – individuals can succeed but it largely depends upon your relationship with your lending manager.
Lenders will only accept valuations from valuers who on their panel – so there is no point commissioning an independent valuation unless the valuer is on the banks panel of approved valuers. This information is readily available from the broker or by ringing the valuers and asking them if they are on a lenders panel and are they prepared to value a property and make it suitable for finance security by the same bank.
Derek
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Hello Sonya
I once put my ppor on the market after appraisals from 3 different agents and going with one. I was told to expect 210-215k as a selling range(this is about 4 years ago) Any way, our house did not sell and there was not much significant interest to speak of.I was moving for work reasons shortly after and my accountant advised me to have the place valued prior to moving for cgt reasons. The valuation came in at 250k!
What do you think I learned from that expierience?
I still own the property but I think it might just be worth having valued first if ever I contemplate selling eh
regards
ShawnHi Sonja
I have found that valuations and appraisals for residential properties tend to fall within a fairly narrow range especially if there is nothing unique about the subject property. In contrast there is normally a wider range for valuations of commercial properties.
Regards
YarwoodI’ve known valuations to differ by up to $100K on a ~$400K place in Sydney!!!
Someone said on the forums recently:
Give me 5 valuers, and I’ll show you 8 different valuations.
Valuations are very much opinions of the valuers – after having done their research. Also, noting that there are drive by valuations, kerbside valuations, and valuations where they actually go INTO the house, you can see how they could probably come up with differing opinions.
Cheers
MelRe valuations!
a few years ago i refinanced PPor to put a pool in and my Then credit union refused to do it as they said the valuation did not support the loan???
When queried as to who why and when for the valuation as no-one had contacted us to do one – we were told the valuer had not bothered to see the property as there was not a property in our suburb worth over $250K – this despite the fact my friend had sold his house for $450K and it had settled 3 months earlier and there was 15 -20 houses currently on the market or under offer well over $300k.
To cut a long story short we offered to pay for a new valuation by a valuer of the Credit unions choice if the value came in under $250K.
The valuation was subsequently done and 3 days later we received a letter of approval for the new mortgage.
When queried we were told the valuation was above the required amount and we would not be charged for the valuation.
The deal was done and the pool went in.
We never did find out the valuation but it goes to show you should not accept any valuation if you really think it is wrong and there are ways around things like this
rgds
Cobra
[suave2]One other thing though Sonja, if you’re getting your proerties valued to get another loan, then make sure you use one of the valuers that the bank accepts and it’s assigned to them, otherwise they won’t accept your valuation anyway.
Regards
Pk
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