I have found it seems to make a difference to bank valuers if you have had a real estate appraisal done,& they always ask:
A)How much did they appraise it for?
B)Who was it?
I am curious (any valuers out there?),do bank valuers ever actually call the real estate agent in qu,to check? & what dif, does it make to bank valuer’s report??Hi Misty,
I’ve always been under the impression that the banks didn’t regard RE valuations too highly. The main reason in their minds being that the agent would most likely give them an inflated price (hoping to encourage them to sell). I’ve noticed in general from my experience that bank valuations seem to always come up short compared to what the real market values of properties are. With a unit I own here in Sydney for example, it was valued @ $205k late last year by a valuer organised by the bank. My unit has been renovated and is probably the most modern and nicest in the block. There have been two sales in the block since then, both units un-improved (this block was built in the 60’s mind you) and both going for $235k! I don’t like banks..A Bank valuation is different to a realestate valuation…the banks value the property on what the value is in the area at that time,
The realestate value on what they think they can sell the property for and are usually inflating the price hoping you will put the property on the market, of course this is not all realestate agents , but the banks always do their own valuation, what you must ask them to do is a full inspection and not a drive by, which some valuers do. If you get a private valuation even if its from the same valuer that does the Bank Val it will still be different, because you are looking
at the property for a different reason[buz2]Misty,
no I don’t check with the real estate, I expect all clients to tell the absolute truth !! and besides, I don’t think anyone would make up an appraisal????!!!.
We always ask because sometimes we have no flipping idea what it’s worth ![confused2]Hi Misty,
Valuers produce reports for a whole raft of reasons one of which is for financial reasons (new purchase, refinance etc) and as such they are required to undertake ‘research’ to ascertain the true worth of the property.
Some valuers are more thorough than others and will study records of comparable sales in the area – they may well contact local real estate agents to see what recent sales (not yet on records) have taken place to assist with their valuation. This way they have the necessary proof to substantiate their figures.
I am also aware that some purchases do not necessitate a bank valuation and the bank will use the real estate agents sale price as good enough. Obviously your individual situation and the location and price of the property have some bearing on this.
Derek
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[specool]We had a situation ealier in the year where 2 vals that were done on 2 places in QLD came in at the same price we paid 14 & 18 months before. After speaking to the valuers they reckon that the market in this area had dropped by 50% in the last 6 months!!! The area is still the hottest spot in s.e. QLD and i reminded them that 2 units in one complex had sold for $50,000 above what he had valued them at. They both worked for the same company and i had no joy out of them so i complained to a government body who have been teriffic in the way they have gone about dealing with my complaint. Some severe action is now taking place against them and i expect a favourable reult soon. There is always a way!!!
Chefman
It was may understanding that vaulers have to show how they have come up with the figure.
And the valuer must use 2 out 3 methods of calculating the price ( comprative, replacment cost or cap rate)
the crux of all this is that a vluation is just an opinion. no one has a crystal ball so the only true way to test it’s value is to sell it!
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