When I purchase my property bank never came out to my place to value my property. How did they decide value of my property? RP Data Automated Valuation? Or Banks have their own data to make this decision?
Accuracy of RP Data Auto Val? Can it be taken at face value? Any due diligence required after obtaining RP Data Auto Val?
On the RP Data Auto Val report what does below mean,( this might sound self explanatory but I want drill a little more
)Estimated Value: $xxxxx
Estimated Low: $xxxxx
Estimated High: $xxxxxThanks in advance.
If a valuer didn't physically inspect the property then it was either a desktop (RP data, etc) or a kerbside.
It all comes down to the security type, location and LVR – for some purchases, a contract of sale will suffice.
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: info@passgo.com.au
In my experience they just do a desk top eval.
The value is that- the value of a typical house like yours. The low one would be if your house needs work. The high one if it has extra features.
If you need a better value I think they need to go in and actually look at it.
We bought a place for $218K We totally renovated it with new kitchen, bath etc. According to the agent it would easily sell for $295K. The bank gave us a val of $250K. You couldn't even get a standard 3 bed for that. They didn't acknowledge that there had been a huge extension (brick) on the back of the house making it a 4 bedroom and 2 living room house. They just did the val on what was listed on the net -3 bedroom.When you first purchase they usually value it at what you paid for it. I purchased one house at $15K more than land value and they still valued it at what I bought it for. We renovated it but I haven't had it revalled yet.
Jamie M wrote:If a valuer didn't physically inspect the property then it was either a desktop (RP data, etc) or a kerbside.I know lot of organisation as well government relies on RP Data but should we take RP Data on face value. Looking at your signature I would like to ask, how can I value my property like a bank?
Jamie M wrote:It all comes down to the security type, location and LVR – for some purchases, a contract of sale will suffice.That sounds too lenient given tight lending criteria followed by banks at the moment.
Your thoughts appreciated.
Catalyst wrote:In my experience they just do a desk top eval.
The value is that- the value of a typical house like yours. The low one would be if your house needs work.Makes sense
Catalyst wrote:The high one if it has extra features.Some comes to my mind, A/C, good floor – Tiles or Wooden, painting. Is there a rule of thumb to maximise this?
Catalyst wrote:If you need a better value I think they need to go in and actually look at it.
We bought a place for $218K We totally renovated it with new kitchen, bath etc. According to the agent it would easily sell for $295K. The bank gave us a val of $250K. You couldn't even get a standard 3 bed for that. They didn't acknowledge that there had been a huge extension (brick) on the back of the house making it a 4 bedroom and 2 living room house. They just did the val on what was listed on the net -3 bedroom.How did you challenged it? Did the bank ended up physically inspecting the house?
BTW, what do you do Catalyst?
I didn't challenge it as it was part of a restructuring of our portfolio, not to withdraw equity as we didn't need it.
Lately we have been buying undermarket properties and renovating them. We do most of the work ouselves as we love it. Both (hubby and I) work fulltime but not for much longer.
Catalyst, Ok cool. Sounds like you have got everything worked out, buying undermarket selling it for profit after the reno. Nice one.
I am keen to you know you story. Can I PM you?
Amit Thaker wrote:Jamie M wrote:If a valuer didn't physically inspect the property then it was either a desktop (RP data, etc) or a kerbside.I know lot of organisation as well government relies on RP Data but should we take RP Data on face value. Looking at your signature I would like to ask, how can I value my property like a bank?
You can ask the lender/broker to request a full valuation instead (that's assuming your actually lodging an application). Depending on the lender, they might allow the broker/banker order the valuation up-front. If neither of these options are available you could always pay for a full valuation (however, this won't be accepted by the lender and will be for your own info).
Amit Thaker wrote:That sounds too lenient given tight lending criteria followed by banks at the moment. Your thoughts appreciated.Why? Valuations cost banks money – if you've got 20% equity in the purchase then there's little risk for them. I wouldn't say lending criteria is overly tight at present – banks are wanting to do business….albeit with the right clients.
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: info@passgo.com.au
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