All Topics / Finance / Valuations No longer Necessary!

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  • Profile photo of calvin_thirty4calvin_thirty4
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    @calvin_thirty4
    Join Date: 2004
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    One of my friends has just appproached his Bank to finance a new PPOR down in Perth and was all set to have his IP valued (by a licensed Valuer) and was informed that that was not necessary as long as he had the local REA value it!

    The Bank is ANZ and their reason is that the value from the REA will, more often than not, reflect the Market value and the valuers valuation generally comes within 2 to 5 % of the REA’s valuation.

    Has any-one else heard this come accross it?

    He had the house valued any way, just to make sure (REA: $220K, Valuer $125K [weird] ) but the bank was happy to accept the REA’s value for the loan.

    Fact or roumor?? Any-one……

    Cheers
    C@34

    Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
    – Thomas Edison

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    Profile photo of redwingredwing
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    @redwing
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    Think Westpac used Roy Weston or one of the PERTH REA groups when we re-structured..IMO most valutions can be at least 10% of the Mark (remembering Banks err on the side of caution)

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    Profile photo of calvin_thirty4calvin_thirty4
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    @calvin_thirty4
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    Hi Redwing,

    I have no actual proof – just the surprised word of my friend.

    He bought his IP two yrs ago and wanted to take advantage of the recent boom to buy a PPOR for himself and his new bride-2-b.

    Our valuation came in at $220K, but in talking to one of the local REAs it was suggested that I could get up to $320K (OK, the garden wasn’t finished at the valuation). If true, that is a massive difference!

    What do our MBs know???? Fact or Fiction???[blink]

    Cheers
    C@34

    Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
    – Thomas Edison

    Don’t let reality be the benchmark for your Dreams

    Profile photo of ShwingShwing
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    @shwing
    Join Date: 2005
    Post Count: 219

    C@34,

    Yep, I’ve never had a valuation done on new purchases of IP’s. As all my IP’s are interstate, I’m simply required to sign an “Out of Region Form”. Which basically says that yes I’m aware of the possibility of 2 tier marketing interstate, but I’ve done my homework.
    Stamp – Loan Approved.

    Mal

    Getting out of your comfort zone, can help you become comfortable

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    I am overseas at the moment in a cafe, so cannot check, but it does sound strange. ANZ usually insist on a registered valuer from their panel, doing the valuation – usually a drive by. Possibly the local agent is also the panel valuer.

    Terryw
    Discover Home Loans
    Parramatta
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of Stuart WemyssStuart Wemyss
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    @stuart-wemyss
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    Sounds strange to me also… Maybe the loan was approved by a branch manager under their own delegation of authority. I am sure that standard policy is to use a panel valuer but maybe this guy just cut corners. I doubt banks will start accepting valuations form real estate agents. Who knows?

    Cheers

    Stu

    Profile photo of grant7grant7
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    @grant7
    Join Date: 2006
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    Friend of mine also uses ANZ. When he wants to refinance he just gets an appraisal letter from the local REA and ANZ are happy to use that as the valuation.
    He gets a few letters and uses the highest one!!
    He always works below 80%, it obviously wouldnt work if a MI was involved.

    I would be interested to know if its ANZ policy or just something this local branch is doing? Or if any other lenders will accept a REA appraisal.

    Grant

    Profile photo of Mobile MortgageMobile Mortgage
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    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    I suspect ANZ may have used the contract of sale instead of a valuation. Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of calvin_thirty4calvin_thirty4
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    @calvin_thirty4
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    Hi Steve,

    No the IP is not on the market (as yet)! He is planning on holding it for another couple of months (FMG is ramping up construction in our area) and then sell it for a higher price again.

    Interesting ….. it is a country location, if that helps but we do have a valuer that services this town. Like I said originally, it is a new thing so maybe it hasn’t filtered out everywhere AND it may be Loan dependant. As in up to a certain loan volume???

    Don’t know, I’m just asking the question.[blink]

    Cheers
    C@34

    Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
    – Thomas Edison

    Don’t let reality be the benchmark for your Dreams

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    A lot of the ANZ managers do their own valutions for ppty in country towns. He probably used the letter from the agent to help him ‘determine’ what the value was.

    Terryw
    Discover Home Loans
    Parramatta
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    Just send me a blank email, with “subscribe” in subject line.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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