Hi Guys,
something ive always wondered is why do valuers ask for the purchase price before they do a valuation???? Whats that about???
I believe if yr paying for a valuation ,it should be them that tell you how much the property is worth ,
not related to how much you are paying.I have bought before for under value but when they find out what yr paying the bank wont lend any higher a figure.
I have just recently learned their are some lenders that will use valuers that dont request purchase price so thats the way im looooking at moving now.
Love to hear yr thoughts.
Kind regards
LukeLuke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
How would they know what to put down if they didn't know the pp?
They would have to do some work.Why not tell them a higher price at the time of valuation – and they you could use your negotiation skills to get a reduction!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I spoke to an ex-valuer once. he said they were only required to do an actual valuation on properties over $500k. their job is not to value each property, but to verify the property exists and is not outragously overpriced. many times they do a drive by and thats all.
that makes us all angry since we are paying good money for their service. grrrrI paid a valuer for a 'valuation' 6 months ago, they said $390k. I sold 2 weeks later for $442k. oops
The valuation provided reflects the brief – if you ask for a market valuation for the purpose of purchasing a property, then you do not need to provide a 'purchase figure', you are paying them to come up with it.
If on the other hand a bank is instructing the valuer to provide a val for 'mortgage purposes', they are essentially confirming that what you have paid is market or below market value they will not provide a val which is higher than what you have paid as you have just proven the basic valuation tenet of 'willing buyer/willing seller'. A bank val is often done on a drive-by basis, as noted above to confirm that the property exists. It generally does not include a thorough inspection of the premises.
Valuers have great hindsight – all of their valuations are based on what has happened in the market ie backed by sales evidence (completed purchases) then they take into account more recent transactions such as what has recently traded in the current market (through networking with agents). They are not paid to crystal ball the future price of a property (unless they are involved in assessing an off the plan development).
If you are so concerned about the bank not financing the value of the property for what it is worth, buy it on a line of credit secured on another property, then go to the bank to arrange finance on the property for what it is worth not at the purchase cost.
They would have to do some work.
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