Hello all, I have recently the portion of my portfolio with NAB valued in order to borrow some more funds. I understand bank valuations are conservative at the best of times. However I had one property go down in value and the other 1km down the road in the same suburb go up. I see no method to the madness. I was told by my banker the address of the property that they were respectively compared too (again granted). However my reply was I have RP Data and I could give you 5 properties at a higher value that it also could be compared to…. I understand that NAB does desktop inspections.
However my questions are….
How does one go up and one go down when they are in the same suburb less than 1km away…. ? The one that went down is actually in a better position. Both houses are some what similar. The trend for the suburb was that there was growth for the year. If one goes up wouldn't the other have to go up?
One property is approx 40k under what I would accept as a bank valuation. The one that went down is somewhat low but still acceptable.
I understand banks are tight at the moment and valuations even tighter and valuations always conservative but there is no pattern to it.
Any advice would be great.
Hi there,
Yes banks seem to be tight nowadays. However, I think banks don’t often change their valuations. From the facts that you have given it seems that you are unhappy with the valuation given to you by that particular bank.
You should be open to other options though, maybe another bank or lender may give you better value for your property. My only advice would be to try another bank or lender, and let them conduct their own valuation. You may be rewarded with a valuation you are happy with. You really can’t expect any pattern as every bank has its own valuation procedures that they seldom divulge to prospective borrowers.
Your best bet would be to try another bank.
Good luck!
Fredo you could have them privately valued. I did this here in perth in oct 2008 CBA were happy to accept them.
Would only accept if the valuer was on their panel and in a format acceptable to the Bank.
Richard Taylor | Australia's leading private lender
I understand bank valuations are tight and that you can get your own done etc etc. I just couldn't see the method in their madness of one going down and then one 1km away similar house going up.
Thats NAB for you and their ex branch staff doing the valuation rather than a Licensed Valuer.
Sometimes can work for you and sometimes against you.
Richard Taylor | Australia's leading private lender
Also there is a chance that one of the properties was overvalued before… This would cause one to go up (which was probably correct before), and the other to go down.
Not saying that this is what happened, but i've seen a few property valuation decreases in the last couple of years.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
