I’m confused… How do you go about getting a true valuation of your property (after a major reno) with a view to refinancing when the banks only do a drive by and dont even look inside…But they wont allow you to use an independance valuer!! Go figure… how do you manage this issue??????????P.S also, if I refinance, cause I have not paid off much of the loan but I have increased the value of the place through a reno…..If I refinance and purchase another IP, wont that just increase the mortgage on the first house and this reduce your CF????????HMMM please someone shed some light….I’m sure its there but I Ive just missed it[inlove]
Snowflake
Sometimes you can argue the case, and get them to do a full valuation.
If you are increasing your loan, then the repayments will naturally increase, but these extra payments should be attributed to the new purchase.
Terryw
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Change banks and stop using the NAB…
All I can say…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
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Mob: 0404 056 055My sentiments exactly Stuart.
Richard Taylor
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I agree too. Don’t know which is worse, this one or the one starting with C.
Terryw
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A Valuer should always internally inspect a property. If not a special circumstance (bank requested restricted assessment etc), it is a breach of API ( trade associations) guidelines. [angry2]
Sounds like you got the good old branch manger to do a “valuation” for you. Hope you didn’t pay anything for it, because it isn’t worth anything, especially not to you.
Ask the bank what is really going on, and if not happy, let your legs do the talking!!!
Regards
Investor1313Investor, many banks just do drive bys. These can be good in some ocaisions – if the place is a dump inside, but nice outside.
Terryw
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NAB will do internal inspections for loans that require mortgage insurance (as do many other lenders). Therefore, just tell the bank that you want to borrow 90%. When the full valuation comes back, adjust the loan amount down to 80% to avoid mortgage insurance. You could also provide the bank with a listing of what renovations were undertake and how much they cost. If you did the work yourself, then list the cost it would have been if you paid someone else to do the work. Include receipts/quotes if necessary. That might help getting a higher valuation.
Cheers
Stu
Its not so easy to get the valuation to match your expected figure but doing things may get answers right for you. I did massive reno on my property to increase value to get more loan thru equity and greater rental potential..The bank valuation came close to my expectation..firstly make sure the valuer or the bank you going with does inspect the property inside out. Arrange a time when you are availabe to take the valuer through the property..please be friendly and make them feel interested in what you say ..can be anything. The house should be neatly presented as if u getting a buyer in..initial photos can be of great help when justifying your effort s to bring the property to a newer look. In detail show everything that has been done regardless of how small it can be.. Keep reciepts for all the expenses. Talk about condition of the property when you bough the place and compare . Have few appraisals done by the realestate sales people and have a written valuation ready for the valuer. Compare your property with the one sold close to yours. You will be surprised. If possible do a profile for your property an d include every detail about the property including photos..This can be time consuming but can bring big dollars back. Hope all goes well..cheers
Manoj
Thanks Manoj… very help ful info…..
The loan for this IP is with the ANZ….They have already told me They dont do internal inspections for valuations… Do I refinance with another bank????[inlove]
Snowflake
Snowflake
ANZ let the brokers order valuations direct, so just get your broker to order the full valuation. If that doesn’t work maybe consider another bank.
Terryw
Discover Home Loans
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Geez…..sounds like most of the Broker’s don’t like any of the big guys….walking from N, C and A.
That only leaves W…..hopefully we don’t put them in the same pot, otherwise the whole thing turns into a big WANC ?? [blink]
For me, I’m happy with the “drive by”, as it’s the dirt I concentrate on.
We got a valuation done just 2 months ago on our PPoR. It’s a 5×2 with a major reno happening right now.
A drive by was done, and then the value proferred was identical to the 2×1 1940’s house sold 3 doors down the week before. Same land size, aspect etc.
Then, a month ago, a vacant block sold (same land size, same aspect, one street across on a busier street) for the same price.
In my unlearned opinion the bricks and mortar occupying the dirt, regardless of how flash, how big, or how much you’ve spent doing it up, aren’t worth 2c and never have been. Hence, my opinions of units and apartments aren’t too high, unless you own the entire block of dirt underneath them all.
It appears a few of the Big Banks agree with my view……hang on…..maybe I’m in the wrong business ?? [biggrin]
Originally posted by Manoj:Its not so easy to get the valuation to match your expected figure but doing things may get answers right for you. I did massive reno on my property to increase value to get more loan thru equity and greater rental potential..The bank valuation came close to my expectation..firstly make sure the valuer or the bank you going with does inspect the property inside out. Arrange a time when you are availabe to take the valuer through the property..please be friendly and make them feel interested in what you say ..can be anything. The house should be neatly presented as if u getting a buyer in..initial photos can be of great help when justifying your effort s to bring the property to a newer look. In detail show everything that has been done regardless of how small it can be.. Keep reciepts for all the expenses. Talk about condition of the property when you bough the place and compare . Have few appraisals done by the realestate sales people and have a written valuation ready for the valuer. Compare your property with the one sold close to yours. You will be surprised. If possible do a profile for your property an d include every detail about the property including photos..This can be time consuming but can bring big dollars back. Hope all goes well..cheers
Manoj
I’ve been doing alot of valuations lately for people who take my valuation to the bank. Yes I agree bank valuations are conservative but when another valuer sees my valuation they tend to trust in it or come pretty close to what I’ve estimated a property to be worth.
As for being overly friendly to the valuers……..[inlove] what can I say…………..
I would love people to have a list of what has sold in the area within the last 3 months and provide before and after photos. It all helps.Originally posted by Dazzling:Geez…..sounds like most of the Broker’s don’t like any of the big guys….walking from N, C and A.
That only leaves W…..hopefully we don’t put them in the same pot, otherwise the whole thing turns into a big WANC ?? [blink]
For me, I’m happy with the “drive by”, as it’s the dirt I concentrate on.
We got a valuation done just 2 months ago on our PPoR. It’s a 5×2 with a major reno happening right now.
A drive by was done, and then the value proferred was identical to the 2×1 1940’s house sold 3 doors down the week before. Same land size, aspect etc.
Then, a month ago, a vacant block sold (same land size, same aspect, one street across on a busier street) for the same price.
In my unlearned opinion the bricks and mortar occupying the dirt, regardless of how flash, how big, or how much you’ve spent doing it up, aren’t worth 2c and never have been. Hence, my opinions of units and apartments aren’t too high, unless you own the entire block of dirt underneath them all.
It appears a few of the Big Banks agree with my view……hang on…..maybe I’m in the wrong business ?? [biggrin]
Ok. Now I totally disagree with the valuations you received. They were done in error obviously if the valuer didn’t consider how many bedrooms your property had compared to the 2 bedder !
The improvements on the land make a BIG difference.
Drive by or desktop valuations are a load of rubbish…….
You heard it from an expert.Hey,
Dont hate now, but my fiancee is actually a lender for a big bank, and their valuers always go inside the property.
But that doesnt always help, i recently did exactly what you did, reno on my property, got the valuer round so i would have more finance, but she valued it only 20k more! And thats after 18monthsfrom the last val, so she has really only allowed for the growth in the area, not even taken into account whats on the land or what it looks like.
There have been so many recent sales in the street, i know what its worth and its so far off the mark, but how do i complain when we work there?!
How do i know what its worth? Im also a non-practising qualified real estate agent, and i have acess to the street sales, and she is about 50k off, and that is being realistic.
Maybe dazzling is right, maybe they only take into account the land – in that case, we should all be getting hotvaluer to value all our properties if she says she takes into account the improvements!
This isnt my only experience either. We bought a unit specifically to renovate, had it valued before we did it as it was a condition of finance, and it came back at 160k. we spent a few thousand doing it up, and it looked spectacular, but she came back and valued it at 160k again! What the? so this deal was no good to us at all, and were now selling it to make a loss [crying]
My point here is that if a low valuation can happen to us, it can happen to anyone! It has definately made me rethink the purpose of renovating, unless you bought at an extremely good price going in, and increased the value that way, i truly believe that valuers only take into account the land value,not even recent street sales, because our valuer sure didnt!Valuers have access to information on what you prevoiusly bought the unit for. If the Valuer didn’t know that you had renovated it, then she stupidly did you a diservice. A good Valuer would know the difference in value between an unrenovated unit value and a renovated unitsvalue. Unbelievable.
I also can’t believe that any Valuer would not take into consideration the value of the improvements ! If you had seen the mortgage valuation, it states the value of the land and the value of the improvements and the two are added together to give the total value.
Sorry but some of you have been done like a dinner.[thumbsdownanimOriginally posted by audrey123:Hey,
Dont hate now, but my fiancee is actually a lender for a big bank, and their valuers always go inside the property.
But that doesnt always help, i recently did exactly what you did, reno on my property, got the valuer round so i would have more finance, but she valued it only 20k more! And thats after 18monthsfrom the last val, so she has really only allowed for the growth in the area, not even taken into account whats on the land or what it looks like.
There have been so many recent sales in the street, i know what its worth and its so far off the mark, but how do i complain when we work there?!
How do i know what its worth? Im also a non-practising qualified real estate agent, and i have acess to the street sales, and she is about 50k off, and that is being realistic.
Maybe dazzling is right, maybe they only take into account the land – in that case, we should all be getting hotvaluer to value all our properties if she says she takes into account the improvements!
This isnt my only experience either. We bought a unit specifically to renovate, had it valued before we did it as it was a condition of finance, and it came back at 160k. we spent a few thousand doing it up, and it looked spectacular, but she came back and valued it at 160k again! What the? so this deal was no good to us at all, and were now selling it to make a loss [crying]
My point here is that if a low valuation can happen to us, it can happen to anyone! It has definately made me rethink the purpose of renovating, unless you bought at an extremely good price going in, and increased the value that way, i truly believe that valuers only take into account the land value,not even recent street sales, because our valuer sure didnt!Hi Audrey123,
I have heard similar to this numerous times. It seems to me as though renos to add value only work when the market is going up. I have read all those reno books; ‘reno kings’ , that guy called ‘Spann’ (can’t remember his first name – Gary or Greg I think), Ben Venuti (I think that’s how you spell it) and others, and they all quote deals they did that seem to have just happened during or just before the last boom – surprise, surprise.
I did a reno on my own place just before that boom and it worked well, but was a total fluke that I didn’t plan for. I have since done 2 other renos on my I.P’s during the boom and basically the value only increased by the cost of the work and fittings – not to mention my many hours of labour.
Having said that, I think that it can work, but you have to buy a real ‘clunker’ for much less than market value – basically the land value, then do the cheapest but good quality reno you can.
So you have to annoy r/e agents with ridiculous low-ball offers and hope for the best. What fun.
I think at the moment the main value out of a reno is going to be to increase the rent return on the property a few dollars.
By the way; why is everybody not naming these banks? Is it against the law or something?
Cheers
Marccant name banks, it is like swearing or kicking grannies when they fall over cracks in the pavement that they wrote a letter to council complaining 2 weeks ago.
Socially unacceptable, PC and all that jazz.
I spit at them, (although I will take their money)
Originally posted by lifeX:cant name banks, it is like swearing or kicking grannies when they fall over cracks in the pavement that they wrote a letter to council complaining 2 weeks ago.
Socially unacceptable, PC and all that jazz.
I spit at them, (although I will take their money)
Just call me reckless and politically incorrect – NAB, CBA, Westpac, ANZ, HSBC, MacQuarie.
There; I said it.Cheers,
Marc.
[email protected]WANC?? Dazzling, your wit makes me smile[biggrin][biggrin]
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