Hi there,
I would like some help in regards to property valuations.
Are bank valuations true valuation or market value of the property.
I had my property valued thru ANZ model valuation came to 650K and with other bank came thru their valuer at 545K..
Big difference I purchased the property for 585K 2yrs ago..bank valuation came at 600K.
Quite confused as to how these valuations work. One more thing the valuer couldn't find the recent sales in area too..he has to attach sales from other adjoining suburbs and far off properties in other corner,
Any help can I challenge them..I am kind of confused and doubtful whether I made right decision in buying the property as an Investment.
thanks in advance
Hi Opee
Bank valuations are generally outsourced to independent valuers.
Even the ANZ model estimates (desktop valuations) are generated via Australian Property Monitors.
The desktop valuations look at a number of variables to come up with their estimate – such as comparable sales within the area.
If the higher desktop valuation provides you with a better outcome – then use that over the actual valuation.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Jamie..Thanks a lot..
But should I be worrying over the low range valuation..is that any type of alarm bell??
The other problem was the recent sales which wasn't any available plus this property is Investment property too.
Opee, like Jamie mentioned, bank valuations are normally done by independent valuers on the lenders panel. The purpose of it is to come up with a value the lender could foreseeably be able to receive if it had to call in the loan. How accurate are they? As you see with the different valuations, there is a big difference between the two you have received. Obviously one of them is totally incorrect.
Has there actually been any recent sales in your area that you can compare that maybe the valuer didn't find?
Cheers
Tom
It's not unusual to see quite large spreads when there's a lack of quality data. You might look at getting a few RE firms to give you a workup on this property and take an average to see where you sit. They should be able to help you narrow the market price down to something a little more accurate than a $100k spread anyway. If they can get to within $30k of each other then you probably have a fairly accurate market price.
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