Advice regarding sworn valuation

Yes, the purpose will influence the value. Valuers need to be conservative when dealing with banks as they will have more likelihood of getting sued down the track. It is normal for their to be an extra fee to get it reassigned to the bank.

But it is strange that your bank is asking you to order it yourself.

Yes, some banks, like NAB refuse to tell you what the valuation comes in at, but then say we can lend you a max of $XX which is 80% of the valuation.

Not strange at all Terry. Recently my nab Banker also gave me the names of two valuers they would accept. The question I would be asking Obiwann 22 is… before spending money on a valuer after only 6 months is.. Has Obiwann 22 had a quantity surveyor provide him with a depreciation report of all the noncash deductions he is entitled to claim so that his initial investment maximises the return on the initial investment ?

The push to access the equity in the initial investment can sometimes mean that you ignore ensuring the initial investment from day one starts to work toward CF+ve territory. How many CF +ve properties can you afford to hold? 

Corrine,

Do not let your banker know who you are using and just go ahead and order the valuation yourself and then once you have received a copy then call the valuer and ask to forward a copy to your banker.

Reason, if you let your banker know who you want to use then she will call threw to the bank and say its being done on behalf of them, and then your value will drop tens of thousands.

Its happened to me and I persued the case and I found out a whole bunch of things
basicly the bank has an influence over the valuation.

Ahh Obiwan

Generally most banks would indeed utilize the purchase price if it was less than 12 months old, unless there had been either significant renovations and improvements done to the property, (without overcapitalizing) or there had been some significant growth in sale prices (not listed for sale prices) in the area for similar properties. This is all the NAB will use with there valuers representatives they employ, and any licensed valuer (as they have suggested) will also be basing their valuation on comparable sales figures (and thus growth or reduction in market value)  And as already mentioned, the valuation purpose does make a difference – for example a marriage (divorce)settlement/payout purpose as opposed to an increase in borrowings. All lenders view equity releases as you are doing to have an element of risk, especially if your original LVR of borrowings was in the higher levels. You would find with your bank however that a professional val from one of their approved valuers they will indeed use in lieu of their in house one, or seriously consider in the case of others. Then again, there is a stack of dubious stuff going on at the moment – I recently heard of vals in one state on a luxury 2 br apartment complex with a variation of more than 20% between the bank/bank valuers/ and an 'independent' valuer that had been 'commissioned' by a broker representing a sales company.

I must post some wording that was shown in a valuation that came across my desk the other day just for 'educational purposes' on the forum when I get around to it.

And on another note – good to hear you may have some cap growth after only 6 mths. All the best

Cheers

Isn't a valuation a valuation regardless if it is for sale, refinance or otherwise………………….

Or if you can spare the cash, get both to do one then you can pick the higher value.