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  1. #1
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    Default Cut-rate valuations cause stir

    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.
    See more
    http://www.stuff.co.nz/business/5561...ons-cause-stir
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  2. #2
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    Default

    At present, most borrowers need to order and pay for a valuation when they apply for a new mortgage
    Really? Are banks no longer happy to loan on the basis of the purchase price? They seemed to be a few years ago.

  3. #3
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    Quote Originally Posted by One View Post
    Really? Are banks no longer happy to loan on the basis of the purchase price? They seemed to be a few years ago.
    They have generally taken the lower of the purchase price and RV, requiring an RV for private sales.

    QV have been offering desktop valuations for a while, and they have been sufficient (from the IRD's point of view) for a related party transaction, for example transferring a PPOR in to a Trust. I've not heard of a bank accepting them though.
    DFTBA

  4. #4
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    Sep 2008
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    So their valuation is low by 5% on what it should be.
    Starts to limit what you borrow.

  5. #5
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    I'm sure there would still be the option of getting one from another valuer who visits the property.
    DFTBA

  6. #6
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    Jan 2004
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    Default

    Valuations... one of the biggest wastes of money in residential PI...

  7. #7
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    Karratha WA
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    Default

    I have found that when I first started out and had little equity I was asked by the bank for valuations. Once my equity increased I wasn't asked for valuations at all. It's another case of having to spend more if you have less.

  8. #8
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    Jul 2010
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    Auckland City, why invest else where?
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    Yes a registered valuation is not cheap by any means.

    However when you can refinance within 3 to 6 months, and have your 20% deposit, renovation cost, and any mortgage payments in between (while vacant) back, leaving your purchase 100% self funded (by the bank), a small fee for the valuation is worth every dollar!

  9. #9
    Join Date
    Jul 2011
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    Bank (Westpac) accepted e valuation (provided by our Mortgage broker) for our privatly purchased home, lending was 50% however.

  10. #10
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    Jun 2007
    Location
    Wellington
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    [So even if the e valuation was 20% off the mark the bank where still in the clear if you went to the wall.
    Last edited by Perry; 05-09-2011 at 10:11 PM.



 

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