Normal for Brokers to Charge for Ordering Valuations?

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Connolly
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@connolly
Join Date: 2012
Post Count: 49
July 18, 2013 - 2:10 am
Hey guys,
Is it normal for brokers to charge for arranging valuations on existing properties?
I have a few properties and have never been charged to have valuations arranged however looking to make next purchase and have just been informed that the company I use will now be charging a flat fee for each valuation!
As have never been charged in the past not too happy with this idea however am happy with the company I use.
Thinking over the long term this could be quite expensive, so am I best to find another broker or just pay the money and take it on the chin?
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
July 18, 2013 - 2:43 am
Hi Conolly
All depends on the lender / Broker concerned.
Personally we never do and i have just ordered 6 valuations for a forum client only this morning who wants us to uncross all of his loans which have been nicely tied up by his Bank but that is not to say every Broker does it for free.
I think it is a rough ask to charge a client but for some Brokers they need to get ever inch out of a client.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
July 18, 2013 - 3:59 am
Hi Connolly
It depends. Most lenders provide upfront valuations for free – I can't think why any broker would charge a client in this instance. '
Some lenders charge an upfront fee for upfront vals. In these instances, the broker may ask the client to cover this cost. Some brokers might pay for it – others might reimburse the client if they proceed with the loan and the broker is paid a comission.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mortgage Broker assisting clients Australia wide Email: [email protected]
Your Broker
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@your-broker
Join Date: 2012
Post Count: 22
July 18, 2013 - 5:27 am
Hi Conolly,
As Jamie said it depend is the broker charging you for his service or is it a case of he is charging as the lender charges for the valuations. If he is charging to order the vals I think you could find a broker on here who would do just as good a job without looking for a quick cash grab charging for vals.
Being an ongoing client of theirs they would have been receiving ongoing payments for your loans and they will also be getting paid for the loan on your next purchase. How many bites of the pie do they want?
regards Dustin McMahon, Your Broker 0430 110 304 [email protected]
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
July 18, 2013 - 10:56 am
Must be a non bank lender – these are often best avoided.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
July 18, 2013 - 12:59 pm
A few of the non bank lender allow free upfront valuations these days so wouldn't think it would be that.
Hard to justify but i guess if you can get away with some Brokers will do it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Your Broker
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@your-broker
Join Date: 2012
Post Count: 22
July 19, 2013 - 1:48 am
Terryw wrote:
Must be a non bank lender – these are often best avoided.
I don't think that this is a case of the lender charging for the vals i think it's the broker charging a service fees. Why do you say non bank lenders are best avoided? I think they definitely have their place in the market and there are some great products they offer.
Dustin McMahon
[email protected]
0430 110 304