Valuation of property, help needed……

Hi Bobby,

This is typically known as a ‘drive by’ valuation. In my experience ‘drive bys’ aren’t usually out by a huge amount. Valuers should do research on recent similar sales of similar properties in your area. Physically looking at, or in, your property is only a part of the research they would normally do.

Some valuers do undervalue to protect themselves from being sued by banks for an over valuation. I found out after getting a low valuation that it is acceptable in most cases to prepare your own evidence to present to the valuer. I have even seen services that you can pay for and they say that they will prepare evidence that will ensure that you get a higher valuation than normal or they give you your money back.

One thing you could try is to contact the bank and say that you are not happy with the fact that the valuer didn’t even come in to see your property and ask if they have another valuer that could do a thorough valuation (most have access to more than one valuation company). They will probaly want to charge you again but the bank has plenty of money so I think they should pay for it. Next time a valuer comes be prepared with a list of major features that your house has and as much reliable similar sales information that you can muster. If you are friendly with the valuer, make his job easier and prove that he is fairly safe to give you a true market valuation, then you might do OK.

Otherwise just go to a good mortgage broker and get a better deal with another lender.

Todd Burns
http://www.freepropertyhelp.com.au

Hi Brahm,

Yes, I am a dreamer and many of my dreams come true. Think about this… Competition is fierce in the mortgage market now…If the bank is going to lose a mortgage from a valued customer over a $150 valuation, don’t you think there is some leverage there? It’s all about negotiation and being bold enough to ask. Just try not to burn bridges and always have something else to fall back on as a back up plan.

The customer may have to always pay in your world but not in mine.

Todd Burns
http://www.freepropertyhelp.com.au

I am with Stephen look around at comparative sales and present these to the Bank’s inhouse valuer.

In saying all of this I think you could obtain a lot better pakage than what NAB are offering dependant on what you are trying to achieve from your lender.

Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]

Yep great except everyone here seems to have forgotten the Nab have their own Valuers employed and only outsource them if and when it is absolutely neccessary i.e; they don’t have one in the area.

They also tend to run with Drive-bys as the norm too. Which is great and shouldn’t normally pose too much of an issue except they consistently come in low on them. The culture amongst the staff at the NAB I’ve dealt with is ultra conservative, so I wouldn’t imagine too much outside the square thinking there…

If you’re unhappy you can always leave, as other suggested, or approach the bank after appointing a valuer to do one for yourself.

Try McGaw Hogg – they’re a national company which outsources their Valuation requests at random meaning you pay the bill, but they choose the Valuer for you. It keeps it truly independant and gives you something to show the bank…

Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055

Hi All

I’m new to the forum – and being a property valuer I thought I might come on and defend the minority here !

Drive-by valuations are usually performed if the loan to value ratio is lower than 80%. There are various other reasons they are used.. One thing came to mind when I read your post … Did you buy off the plan ??? You may have paid a premium ?

If you disagree with the valuation – get a copy of the report – look at comparables and see if they are within the past 6 months.. see if they are in fact comparable. Also look at the description of the property – it is accurate.

As holdencommodore said is it possible that you’re a bit biased in your view? The market hasn’t done too much in the way of positive growth in the last year (in general).

Just keep an open mind when you read the valuation..

You should a full inspection if you want one – but be prepared to pay for it – and it will be more than a drive by.

Bobby

I agree with you.. If the valuation was instructed by the bank they are within their right to say no – as they were the party who instructed the valuer, not the home owner.

On the other hand, I do know of some banks, more lenient ones, who have no problem providing the owner with a copy.

To be honest, the valuation is for mortgage purposes and provided to the bank for this purpose and of no use to the owner/third party.

If however, you do disagree with the valuation and it compromises the loan approval its worth requesting a copy and an explaination from the valuer to shed some light on his analysis.

The valuer is just doing his job – he’s not trying to compromise a loan – I don’t think they would have a problem with explaining the analysis.

Stuart

Feel free to vent ![biggrin]

In my time as a residential valuer (I now value gas pipelines, substations, docks – lg ind pty), driveby vals were not popular, even discouraged by the industry body – but were thought to be safe for loans with low borrowing. Unfortunately, I cannot comment on each banks valuation policy.

You’ve have had a bad experience with a couple of Valuers, thats unfortunate. Did you raise your queries at that point ? I would have mentioned those sales he failed identify. Only thing that comes to mind is the SOME databases used to idenitfy comp sales are sometimes behind by 3-6 months BUT this is no excuse, as you can make your own enquires with local agents who may have also sold within the immediate vicinity who are usually very helpful.

We are all working towards the same objective, I generally had a fantastic relationship with the brokers and bank reps I worked with. If a property came in under the estimate, I would always let them know why and it was never a problem.. Sorry to hear you had some bad experiences.