SO I PAID FOR A VALUATION SO I COULD BE SURE HOW MUCH EQUITY I COULD PULL OUT FOR MY NEXT PROPERTY PURCHASE.. CAME BACK 25 PERCENT UNDER THE 2 MARKET APPRAISALS WE GOT FROM 2 AGENTS THAT WE SUBMITTED ALONG WITH THE COMPARABLE SALES DATA FROM THOSE AGENTS WHICH MATCHED THEIR APPRAISALS.VALUER USED SO CALLED COMPARABLE SALES. OUR PROPERTY IS A 3 BED 2 BATHROOM 1GARAGE FULLY RENOVATED PROPERTY. THERE COMPARABLES WERE 2 BEDROOM 1 BATHROOM NO GARAGE, JUST A CARPORT, 1980'S DECOR PROPERTIES.. WE HAVE DISPUTED IT BUT WHAT ARE OUR CHANCES OF THEM RECOGNISING IT IS INCORRECT? VALUATION CAME BACK AT 185K, WE WERE EXPECTING 240K ROUGHLY…. SORRY ABOUT CAPITALS, MY PHONE IS HAVING A PERSONALITY OF ITS OWN TODAY…
We’ve had valuations revised for clients. It’s generally a matter of providing three recent comparable sales which support your argument. Sounds like the valuer has botched this one up as they are using smaller dwellings, etc as comparisons. I’d use that as an argument as to why their valuation was inaccurate.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Goldies,
As Jamie has said – they can be revised.
Key issue is to stay composed in discussions and only use current comparables.
Would also be to your advantage to have evidence of the errors (as stated in your post) so you can show the bank.
WE SHOULD FIND OUT RESULT TODAY. ALL THE EVIDENCE FROM AGENTS WAS SUPPLIED FOR THE DISPUTE SO I CAN ONLY HOPE THEY GET IT RIGT. EVEN IF THEY CAME IN 10% UNDER THE AGENTS OPINION AT 215K I WOULD BE MUCH HAPPIER. WILL LET YOU KNOW THE OUTCOME. SHOULD I USE A DIFFERENT LENDER IF THEY DECIDE TO KEEP THE VALUATION AT 185K AND HOPE FOR A MORE ACCURATE VALUATION SECOND TIME ROUND?
Hi Goldies,
Are you doing this through a broker?
Reason I ask is that your broker is best placed to recommend a response if you don't get the response you want.
A few years ago Westpac would accept a valuation from their panel valuers if it was submitted with the loan application – CBA wouldn't. I used to organise my own valuations (using Westpac valuer) and then work with my broker to develop a strategy when we knew the result. This was a few years ago and I am not sure whether Westpac and others do the same now.
The difficulty you have with multiple loan applications is that they are recorded on your credit report – too many declined or rejected or withdrawn and other banks start to look a little 'harder' at your application to see what you are 'hiding' from them. The other thing to consider is will the next valuation be any better?
So many variables and that is why I suggest you speak with your broker.
OK… RESULTS ARE IN. VALUATION HAS STAYED AT 185K. I AM WAITING ON THE EMAIL SO I CAN SEE THEIR COMMENTS. YES WE USED A BROKER AND THIS WAS DONE BY CBA'S VALUER – WHOEVER THAT WAS. THINKING WE WILL DISCUSS STRATEGY WITH BROKER AND POSSIBLY END UP USING ANOTHER LENDER. LAST TIME WE USED CBA WE SUBMITTED APPRAISALS AND RECENT DATA AND THEY MATCHED THE AMOUNT OUR AGENT GAVE THEM. THIS TIME THEY HAVE GOT IT VERY WRONG WHICH IS UNFORTUNATE AS I WILL PROBABLY GO ELSEWHERE NOW. IRRITATES ME THAT THIS IS HALTING MY NEXT PURCHASE. THE RECENT SALES DATA THEY ARE USING IS FROM OCTOBER, OUR AGENT SUBMITTED NOV AND DEC DATA AND THERE HAS BEEN A SMALL INCREASE IN VALUES IN THIS TOWN AND HIGH INVESTOR ACTIVITY COUPLED WITH INFLUX OF WORKERS AND I AM THINKING MAYBE THE FACT THAT THE INCREASE IN VALUE IS SO RECENT THAT ITS NOT REFLECTED OR RECOGNISED AS YET. I DONT KNOW. I AM AT A LOSS WITH THIS ONE
If you go to a diff lender; make sure to order an UPFRONT valuation first BEFORE any Credit checks- else you end up with muti credit checks.
It doesn’t affect your approval as such. just a different order of how things are normally done.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Goldies,
Your not the first and last person to have this experience. I used to work as a real estate agent a and i used to value homes based on what has been sold in the area for the last 6 months etc.
But i think at the moment valuers are being conservatives. Also don't forget the Agents are lending you the money the banks are.
So if you defaulted they want to make sure they can recuperate there loss.
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Michael's point above is a good one. Your broker should be able to advise on which lenders provide this service.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
update on the saga, got a reval from ANZ for free, no application required as part of one of their packages – came back today $210k which is spot on. How could they be so different?
And to refer back to previous comments, we have no put any applications in at all. The CBA valuation we paid for upfront before submitting application to ensure we had enough equity so no damage to credit have been incurred at all.
our broker has sent this reval to CBA with a second dispute to see what they say. We would like to stick with CBA so we are hoping this dispute will go our way. $25k difference is rather large considering the actual value of the property. its more than a 10% difference.
What an interesting world property investing is. I am learning so much!
Investing is like one big game of chess!!
It's a good result. If CBA don't accept the valuation challenge then you can always jump ship to ANZ (providing the costs of doing so are worth it).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Ok so CBA have left the reval at $185k even after the 2nd dispute.
Will ask my broker about ANZ costs etc. See if it is worth it or not. Such a shame really!
Hi there
It's not so much the ANZ costs (unless LMI is payable again).
You'll need to get a payout figure from CBA so you can make an informed decision.
There's also some govt fees (not huge – but worth noting).
You also need to look at the opportunity cost of not switching. I assume the equity was going to be used to fund another IP?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I think we will stick with CBA but just have less funds to withdraw for next project. It just means our reno budget for next project comes down a little for the time being.
I guess it is ok in one way, we can still draw money out for next IP, but we have more room to move in the future if the property could sell for $210k then in 12 months time or so, CBA may recognise the growth in our area and we may get a reval of $220k or more in the near future purely because they have underestimated its current worth.
So we can still progess with next IP, just with less funds, but have more equity to use later if correct valuation is done.
I would have jumped over to ANZ so that CBA did not get there way – CBA are only good for one thing and that is to hold onto your cash and thats all they do for me, they get none of my main business
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