Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Borrowers 'victims' of low valuations

Notify me of new replies via email
Australian Broker | 27 Oct 2011, 05:00 AM Agree 0
An online lender has joined a growing chorus of brokers expressing concern over falling property valuations
  • Ozboy | 27 Oct 2011, 10:22 AM Agree 0
    It's a conservative market of course they are going to be conservative. Wake up after 5 consecutive quarters of prices going down what do you expect them to do. Time to take some responsibility for your inability to understand the basic structure of the market you are in.
  • Neil Williams | 27 Oct 2011, 10:57 AM Agree 0
    While these low valuation outcomes are frustrating for all involved, it is a clear advantage that brokers have. We know which lenders to avoid in this market, and which (usually) non-bank lenders will consider refi's in a high lvr situation. I say to the majors "keep spending your marketing millions". The brokers are more relevant now then ever before. These are the good old days.
  • bradq | 27 Oct 2011, 11:09 AM Agree 0
    I see how valuers are useful for a construction, as they are qualified engineers... but for a purchase and even a refinance, seriously, what does a valuer kow about property prices? nothing i tell you. This is a very bad situation with valuers being sued by LMI, then lowering vals so that they dont get sued again. No one wins
  • SteveMc | 27 Oct 2011, 11:48 AM Agree 0
    Oh yes, the valuers are quick to quote cases of horror stories where someone has been sued. But they can't actually identify a case that a valuer has lost, even though the valuer demonstrated dilligence, professional standards, proper research and conclusions. I'm thinking most of the cases before courts lack one or two of those elements, but would be keen to read of an exception. So, when the horror stories are cited as a defence, is that really code for inefficiency, or an inability to be efficient at the prices that the valuers are paid? My guess is that valuers are under-paid and they respond with a conservative tick & flick report. Not an excuse, but the reason.

    Meanwhile there's a client that suffers the consequence of that system, that they are really paying for.
Post a reply