Broker Valuation do i trust it?

Viewing 5 posts - 1 through 5 (of 5 total)

alterego44
Participant
@alterego44
Join Date: 2013
Post Count: 16
March 14, 2017 - 6:40 pm
Hi!
I’m currently refinancing to access additional fund to purchase my second ivest ment property.
I have 2 properties in Melbourne
My PPOR is in Selby Valued at $575k about 8% growth over 3 years
Investment property is a Unit in Hampton $560k about 3% growth over 3 years
all the data online suggest that selby hasn’t had very good growth yet the broker has valued it much higher than what is was just three years ago!
yet my property in hampton, a relativly well performing suburb from what i can gather has been valued quite low (i think)
my question is, by using these valuations to access additional funds am i putting myself at risk if the valuations are incorrect?
i was thinking about selling selby/hampton and buying something in a better growth area, but what is better growth? is 8% good? or is the valuation wrong??
Thanks for your advice!
Simon
Participant
@simon1313
Join Date: 2017
Post Count: 59
March 14, 2017 - 9:14 pm
Hi Alter
Have valuers visited the property & returned valuations inline with the above post? I have had brokers & banks speculate over the phone re valuation on my PPOR. Once the Valuers visited the property I knew exactly what I had to work with.
Edit.. A valuation requested by a broker from a lender, is this what you are calling a “broker valuation”? I guess one way to know if the valuation is going to put you at risk is to compare it to recent sales of comparable property’s in your aria. Also request more than one.
I did this recently & had three lenders (who visited the property) all come back within 20k
S
- This reply was modified 7 years, 9 months ago by Simon.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
March 15, 2017 - 4:28 pm
Brokers don’t value properties, but qualified valuers do. Most people over estimate what they think the property is worth so have a realistic expectation. If you think it is low do you have addresses of comparable properties in the area that have been sold and have settled/? If so you could challenge the valuer.
You might also consider asking your broker to order another valuation through a different bank’s valuer and if this comes in higher consider refinancing.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
alterego44
Participant
@alterego44
Join Date: 2013
Post Count: 16
March 15, 2017 - 5:40 pm
The valuation actually cam in alot higher than i expected. and we are re financing, i guess just wasnt sure if i should loan more on something that could potentially not be worth what they have valued it at.
Ethan Timor
Participant
@ethantimor
Join Date: 2016
Post Count: 282
March 16, 2017 - 9:18 am
alterego44 wrote:
The valuation actually cam in alot higher than i expected. and we are re financing, i guess just wasnt sure if i should loan more on something that could potentially not be worth what they have valued it at.
If the lender is happy with the valuation, then you shouldn’t have any issues down the line, as long as you pay your mortgage on time and don’t cross the properties 👍😎
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
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Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)