E-Val from GV site - anyone use these a bit ??

[Bluekiwi]

Dont really have much experience with this.
How does it work.
They cost $50 bucks each.

One bank has said they will use this instead of a RV.
Which is very cost effective.

But how is the value calculated, I assume they use the GV information, and somehow derive a value withought actually moving from their seats.

Anyone had much experience with this, how close - below or above CV - are they ?

[Jimmythepants]

Hey Bluekiwi,

Here's a link to QV where they show a sample report and at the bottom of the page talk about

• How is an E-Valuer calculated
• How should I use E-Valuer
• How accurate is an E-Valuer

http://www.qv.co.nz/onlinereports/propertyreports/evaluer.htm

This statement interested me though;
''Each week we test E-Valuer against every sale that QV has received. The results
show that at a national level E-Valuer consistently values properties within 10%
of the actual selling price over 67% of the time, and within 20% of the selling
price for over 90% of properties''

Interesting that your bank said that they would happy with this report instead of one from a RV.

[eri]

that is interesting

so it's basically just an up-to-date

CV

[partya]

'Within 20 % of the selling price for 90 % of the properties'? Hardly accurate - 20 % of $500,000 is $100,000! Put the $50 towards a real valuer.

[Jimmythepants]

I agree, 20% is a large margin of error.

They do provide a "Forecast Standard Deviation (FSD)" that can be used to tighten up what is essentially a guestimate.
I assume that this tool would be most accurate in urban centres where there are a large volume of sales, therefore larger sample size and smaller statistical error.
The reverse would therfore also be true when dealing with remote rural properties.

But as they say "statistics can be used to prove anything, 65% of all people know this"

[Wayne]

I wonder how accurate a real valuer is if their value was compared with actual sale price?

[Glizzle]

Ive only ever got one e-val report, was for a house i couldn't get my head around. First time on market in 40 years, good area of Bucklands beach, very clean 3br brick house on 680square but cv of only 400k. I looked days before going to market but had other people from different agents making offers within the 1st day of views so had to act quick .
The e-val came back giving a price range 410-490 and est selling at 455k, i knew this was never going to be enough for this area, put the highest down i could offer of 490 but was still turned down and i believe it got close to 530. My advice would be to always double check, make sure you have come to a number and its not just been forced into your head by some $50 website gimmick.

[Bluekiwi]

So the valuation specified 455k ??

I am just tyring to get my head around whether the valuation is going to be around CV or possibly a bit higher.

I would say these reports might give you a good value for a property that is in area where houses actually sell close or under CV.

Not a property in a high demdn owner occupied established suburb.

[Wayne]

So what do you want the valuation for? If it is to investigate how much you should pay I would get a real valuation by a valuer who knows the area. If you need one for the bank try the e-valuer for $50 and if it values up OK then you have saved yourself some money. If it values too low then you will probably have to get a real valuer and you have wasted $50.

[Simmo]

I've done a dozen or so over the last year, Westpac throws 5 at you with a pre-approval. To give you a couple of exact examples:-

Prop 1 - CV 159K, Evaluer 143K, Registered Val, 147K
Prop 2 - CV 299K, Evaluer 283K, Registered Val, 225K

Obviously they don't check out the condition of the property, but both these were in similar do-up condition yet because the CV was whack, so was the E Valuer. Good for a rough guide but with the margins involved your best to study real sales data IMO.

[roseneath_rat]

Lenders will usually go for a lower LVR than a full RV, but more than a GV. Intrinsically this feels right too because its more accurate than the GV (ie- it actually looks at recent comparable sales) but without any inspection or allowance for unique positive/negative features (eg- bad sun, great views etc).

Simmo is also right that Westpac gives you 5 free E-val reports if you get a preapproval through them.