All Topics / Help Needed! / Broker Valuation do i trust it?

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  • Profile photo of alterego44alterego44
    Participant
    @alterego44
    Join Date: 2013
    Post Count: 16

    Hi!

    I’m currently refinancing to access additional fund to purchase my second ivest ment property.

    I have 2 properties in Melbourne

    My PPOR is in Selby Valued at $575k about 8% growth over 3 years
    Investment property is a Unit in Hampton $560k about 3% growth over 3 years

    all the data online suggest that selby hasn’t had very good growth yet the broker has valued it much higher than what is was just three years ago!

    yet my property in hampton, a relativly well performing suburb from what i can gather has been valued quite low (i think)

    my question is, by using these valuations to access additional funds am i putting myself at risk if the valuations are incorrect?

    i was thinking about selling selby/hampton and buying something in a better growth area, but what is better growth? is 8% good? or is the valuation wrong??

    Thanks for your advice!

    Profile photo of SimonSimon
    Participant
    @simon1313
    Join Date: 2017
    Post Count: 59

    Hi Alter

    Have valuers visited the property & returned valuations inline with the above post? I have had brokers & banks speculate over the phone re valuation on my PPOR. Once the Valuers visited the property I knew exactly what I had to work with.

    Edit.. A valuation requested by a broker from a lender, is this what you are calling a “broker valuation”? I guess one way to know if the valuation is going to put you at risk is to compare it to recent sales of comparable property’s in your aria. Also request more than one.

    I did this recently & had three lenders (who visited the property) all come back within 20k

    S

    • This reply was modified 7 years ago by Profile photo of Simon Simon.
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Brokers don’t value properties, but qualified valuers do. Most people over estimate what they think the property is worth so have a realistic expectation. If you think it is low do you have addresses of comparable properties in the area that have been sold and have settled/? If so you could challenge the valuer.

    You might also consider asking your broker to order another valuation through a different bank’s valuer and if this comes in higher consider refinancing.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of alterego44alterego44
    Participant
    @alterego44
    Join Date: 2013
    Post Count: 16

    The valuation actually cam in alot higher than i expected. and we are re financing, i guess just wasnt sure if i should loan more on something that could potentially not be worth what they have valued it at.

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    The valuation actually cam in alot higher than i expected. and we are re financing, i guess just wasnt sure if i should loan more on something that could potentially not be worth what they have valued it at.

    If the lender is happy with the valuation, then you shouldn’t have any issues down the line, as long as you pay your mortgage on time and don’t cross the properties 👍😎

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

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