Of course, it could have ended up very unfunny. Thought I’d share it with everyone.
I had to get a bank val on a Port Macquarie unit that I settle on next month. The val came in on Friday morning at $340K. Now, I know valuers tend to drag the chain in a rising market and lead the charge down in a falling market, but I thought this val was way too low.
The lender at the bank was sympathetic, but said that he’d already quizzed the valuer and he wasn’t going to budge. I got stroppy and said I bet the guy hadn’t even visited the property. The lender said unfortunately the guy had – the bank pay $197 for a detailed val and $110 for a drive-by. They’d paid this guy $197.
I asked the lender to read the rational for the low val to me over the phone. He sighed, but humoured me and read it aloud. There was the usual guff on comparative sales + the unit inclusions and block amenities.
When he’d finished, I asked him very patiently, if it wasn’t too much trouble, whether he’d be able to call the valuer and ask him if he visited the unit how he managed to miss the third bedroom and the second bathroom.
There was a long silence.
I’d love to have heard the subsequent conversation.
The val came back an hour later at $415K. (An I think the valuer may have overcompensated.)
Please note (Hot Valuer in particular) that I’m not having a go at valuers in general. There are good ones and lousy ones, just as there good and lousy quantity surveyors. I think valuers have been squeezed on price so much by the banks, and undercut eachother to win contracts, that they struggle to make a quid without taking short cuts.
Funny, depreciator!
Is that perhaps the reason lenders often are being so secretive about their valuation disclosures?[biggrin]Hi Scott,
Nah it could never happen – methinks you’ve written a piece of fiction.[biggrin]
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
One thing I have learnt is that the Unit number on the physical units, as compared to the lot number on the Title of the property can sometimes be different! Perhaps this sheds some light on the mystery??? I have seen this happen to a valuer before – i had valuer on one phone saying he was knocking at the door, and client on other phone saying she was at the door and nobody was there. It was because the valuer had looked at the diagram of the blocks on that big sheet diagram…(damn what are they called??).
You guys get my drift anyway I’m sure.
Liz
Mortgage Lender
It’s worth checking though. I had a valuation done last year on 4 x 2 br flats. The valuation came back as the block having 2 x 2 br and 2 x 1 br. The rental figures were also incorrect. The valuer cliamed he ahd valued another block in the same street and it was word processing error
Good for you for investigating. Keeps us on our toes !
Originally posted by depreciator:
When he’d finished, I asked him very patiently, if it wasn’t too much trouble, whether he’d be able to call the valuer and ask him if he visited the unit how he managed to miss the third bedroom and the second bathroom.There was a long silence.
That’s priceless!! I wonder if that guy/girl got any more business in a hurry from that bank!
Cheers
MelI think there are only 2 valuers in town. They’d both be on the panels of most lenders. And they’re probably overworked right now – lots of activity up there.
I’d say the broker in question is probably being pretty conscientious right now.
There was no excuse. He knew the unit number and he knew it was on the 3rd floor, south east corner.
The painters were finishing off last week and the access wasn’t an issue.
LOL, great story.
I can never get the valuation figure off the bank though, no matter how much I argue with them, they just won’t give it.
We have a weekender and used to have a block of land in the same street, which were both “Lot 5” but different DP/Subdivisons. We were selling the block of land for $25k at the time, and the buyers solicitor said it is mortgaged and you have to clear the mortgage first. We had mortgaged the weekender not the land!! And the old shack came in at $54k. It seems the conveyancer had sent the wrong title to the bank as security after it was stressed in writing which DP to send! The bank just rubber stamped it and never checked the title against the valuation! So we asked “which bank” to please return the land title and we will send the correct title via our new solicitor after we receive the new mortgage documents and a letter aying there would be no charge whatsoever for the reregistration of said mortgages etc. No letter was forthcoming, and nether was the title, so we went to St George, explained the situation, and mortgaged the house again!!!!!! And the valuation was $100k this time……The land deal fell over as the contract was yet to be signed, so we sold it for $98,500…..and that makes the val on the house a bit sick….
And now for the other side on valuations…
I had my PPOR valued last week and it came in over what I expected and over a the local agents estimated.
I did a fair bit of preperation for the valuer, but it still took me by surprise.
Scott
Always get numbers for the valuers from your property managers who the valuers have to contact for access if it isnt s drive by shooting. This means that in most cases You can actually talk a valuer up a bit.
Ok situation recently, had to do 6 vals on IP’s to release a ppor from same loan. All vals came in reasonably but I needed another 10k to ease the payout. So I go to the valuers I have previously dealt with last year on other properties and ask for a clean 5k on 2 of them only.
One said yes straight away and the other took a fax with projected minor fixups to convince. I got 10k of upped vals and that means 8K less cash to release title. Nice world sometimes, and it does pay to be nice when approaching stressed valuers.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
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