Hi there,
I have recently had a valuation done on my house which i believe is totally incorrect. I know valuations are generally less than what houses sell for but this one used figures on houses that did not relate to mine and were old.
I have provided my bank with the last years worth of 4 bedroom houses in my area and what they sold for and put across that my house is larger than most and has a self contained flat attached to it.
Do i really stand a chance of having them change their decision or do they just take what the valuation came in at and leave it at that.
Hi
There isn't really anyway of appealing it.
Only advice would be to get your own independent valuation, if this is considerably higher, send that and your other supporting evidence to the original valuer and maybe ask the bank to get another valuation done by someone else.
Although its clearly never going to be admitted the banks(LMI's) control the true values. Valuers in this market are puppets to a certain degree.Also there are really great posts on valuations in these forums. have a search and see what you can dig up.
Hi sienna
Not every client likes the valuation their lender comes back with and appealing it with the current lender is probably futile.
Nothing to stop you looking at taking your business elsewhere and getting a new valuation.
Depending on the figures and what you are trying to achieve may well be worth it.
Let me know the security address and who did the valuation and i can probably give you some options.
Understand if you want to take the response off forum and email as it will contain personal info.Richard Taylor | Australia's leading private lender
Hi Sienna,
Matt is most correct on this one. Being from a lender it is extremely difficult if not impossible to have the valuer adjust his valuation. Most lenders will not allow a 2nd valuation as the process will just continue if your not happy with that one also.
Most people make the mistake of getting a real estate appraisal and honestly the lender/bank does not care. They will forward this onto the valuer and there is no chance of getting it changed. Although sometimes it does happen if there is such a discrepency in the valuation figures if the 2nd report is extremely different, but you need to weigh up the costs as most lenders will not use a valuation done by the borrower as there may be a conflict of interest.
Kind Regards,
AM
Having had a number of valuations both on private, investment res and commercial property I know how hard this is to get a good val. However I think that our current attitude to just "rolling over" is also not correct. For example: when getting a bank loan, we as the borrowers usually pay for the val. Therefore we should be able to see the full report, however this is not the norm and most people don't ask for it. It is an unfortunate result of many of us "needing" the bank more than they need us – which results in most of us doing exactly what they want – paying for it and then shutting up!!!
I think you need to ask questions of your bank and then put forward clear (non emotive) reasons why they need to re-evaluate. We should all be asking for the copy of the val as well – this way banks will start to get the message that we are all abit smarter than they think….if you don't ask then you don't get.
Susanne
You are incorrect in most cases you the borrower do not pay for the valuation.
Certainly you may pay an application fee which covers the lenders costs of undertaking whatever type of valuation he deems fit and on what basis he requires. (i.e 60 forced sale, market val etc etc)
The valuation is done for the lender and the borrower has no legal right to sight the report.
Richard Taylor | Australia's leading private lender
To clarify Richard's point, the mortgagee engages a valuer to determine how much they should lend against the security (your IP) in case of default and based on the banks experience it will issue instructions to its valuer accordingly. There is no contract or other relationship between you and the bank's valuer and the valuer has been engaged to protect the interests of the bank, not you.
Basically, it is done for the purposes of lending for the lending institution. The borrower has no legal right to have the report released. It is the lending institution who ultimately decides.
I have only managed to successfully challenge valuations three times in 8 years. It is near impossible and you will need to provide comparable sales that the valuer hasn't used in his report. You may also want to find out if the valuation was a desktop, kerbside or a full valuation. If it is was a kerbside or desktop you may want to request that a full inspection is carried out.
Cheers
HI everyone, and thanks for all your responses. I put my appeal to the banks and provided all the data for the suburb and the fact the valuer used the 2 lowest priced properties to guage mine against. They just gave the details to the valuer who said if my house was fully renovated he would of priced it at that but he would not change the valuation. My price i had valued at was as is and would have been way higher if renovations completed. Currently there is not a house in the suburb for sale under $500k renovated or not so it is a slap in the face but maybe with a little help from Richard we can progress.
fingers crossed.
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