problem with valuer

Hi prusli. Unfortunately when it comes down to it, the rental income received and any market appraisels have very little if any to do with the actual property valuation, although a rental value is reported on in the val usually. Was it a full valuation – ie done inside the property? All that essentially is used is comparible sales of similar properties in that area.
 Unless you can prove yours is better in some way, or find some other comparible sales you will possibly be stuck. As a last resort, you could commission an independant val of your own for comparitive purposes.
All the best.

Hi Prusli……Ok. Well that measn you should have the actual copy of the val yourself, with the comparable sales and valuers comments on it. (ie it should say how the properties compare to yours, such as better street appeal, but smaller block' or something similar.) Unless you can come up with some other comparable sales, you may be in a spot of bother. That said, I have done finance for a guy a while back, where we waited another two weeks until some other properties had sold, and got the val increased a bit that way. Pain though….the process and the valuers, who can at times be a bit on the, shall we say, pompous self important side at times.
If you really feel the val is wrong, I wonder if macquarie will accept anothe val? That said, HTW are usually pretty good I thought.
Have you got enough equity in the property to use mainstream lender, who may be more open to some flexibility?
Cheers

Prusli, what were the instructions given to the valuer (if any)? Were they directed for mortgage valuation/lending purposes? Sale of Propertty/Divorce Settlement? Building insurance/Replacement Value?

The valuation will be based on actual sales of comparable properties, unlike commercial property which will be valued on yield and the secondary methodology of comparable sales. A high rent may be more symptomatic of the low vacancy rates/high demand and a correction in yields as opposed to reflecting a higher price.

Is there any perculiarity with the property eg: easements, restrictive covenants etc

Is the current use the highest and best use? ie is it zoned for units/townhouses (either by itself or amalgamated with other blocks)?

The market appraisals offered by real estate agents are only opinions and basically not worth the paper that they are written on – used by the agent as a marketing tool to get your business.

If you are concerned with the valuation, discuss it with the valuer to determine how he has come the the conclusion that he has – there may be some scope for discussion & revision. He may be able to clarify why he has or hasn't considered a particular relevant sale.

I am not saying that the valuer may have been conservative in this appraisal but may have taken into consideration such factors as increasing interest rates and their dampening effect on prices.

An external (drive-by) valuation will not establish the condition of the house internally. For the valuer to fully appreciate the property he must undertake a thorough inspection – externals will reveal the age and assumptions will be made based on the external appearance of the property – eg 1970's b/v 3 bedroom with slg, 1 1/2 bathrooms – this will provide the basis of determining that the house is 30-35% through its life cycle, in average condition etc. If he went inside he would discover that it is a 3 bed, ens, bath, tandem garage, new kit etc so his perception of the premises would change dramatically (and he would still be able to justify his valuation).

Renovation does lead to a much better rent, especially in a tight market – it puts you at an advantage.