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Cut-rate valuations cause stir
GREG NINNESS
Last updated 05:00 04/09/2011
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The cost of residential property valuations is likely to tumble as ANZ Bank rolls out a new valuation ordering system, which means valuers will no longer inspect many of the properties they are valuing.
Under the new system, the bank will approve many of its mortgages on the basis of desktop valuations, prepared by valuers drawing information from a valuation database, without inspecting the properties concerned.
Although this is likely to have an impact on the quality of the valuations, it would also reduce their cost, leaving bank customers with more money in their pockets.
However, valuers worry that if the practice of using desktop valuations becomes widespread, it may make it more difficult for the profession to maintain overall standards.
At present, most borrowers need to order and pay for a valuation when they apply for a new mortgage, or significantly alter an existing one. On a typical home that can cost around $600.
Under the new system being introduced by ANZ, the bank would order the valuation from a panel of approved valuers who would handle all of the bank's work, although the customer would still pay for it.
GREG NINNESS
Last updated 05:00 04/09/2011
Share
Text Size
The cost of residential property valuations is likely to tumble as ANZ Bank rolls out a new valuation ordering system, which means valuers will no longer inspect many of the properties they are valuing.
Under the new system, the bank will approve many of its mortgages on the basis of desktop valuations, prepared by valuers drawing information from a valuation database, without inspecting the properties concerned.
Although this is likely to have an impact on the quality of the valuations, it would also reduce their cost, leaving bank customers with more money in their pockets.
However, valuers worry that if the practice of using desktop valuations becomes widespread, it may make it more difficult for the profession to maintain overall standards.
At present, most borrowers need to order and pay for a valuation when they apply for a new mortgage, or significantly alter an existing one. On a typical home that can cost around $600.
Under the new system being introduced by ANZ, the bank would order the valuation from a panel of approved valuers who would handle all of the bank's work, although the customer would still pay for it.
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