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​Brokers and valuers: Open up the lines of communication

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Australian Broker | 11 Dec 2013, 07:24 AM Agree 0
Valuers need to be doing more to ensure brokers are kept informed of what’s happening in the valuation industry, say brokers.
  • Stephen Sillett | 11 Dec 2013, 09:35 AM Agree 0
    I agree totally, we pride ourselves on building relationships with our customers and referral partners, why not our valuers. The trouble we experience is that we are unaware of who is doing the valuation until the valuation has been complete.
  • Well | 11 Dec 2013, 09:39 AM Agree 0
    As long as they come in low to protect their PI Insurance position....
  • John | 11 Dec 2013, 09:53 AM Agree 0
    I agree, the lines of communication should be open, but this has to be embraced by the valuers
    The problem with valuer's, they are never wrong? You provide comparable sales in the area, but they do not accept? I had one of my properties valued, the report sounded nothing like my property, yet when I approached the valuer re this, he said it would not make any difference?
    Another example, I had three valuation done on a property in Kew, they ALL came in different, the difference was, a staggering $325,000, so who is right and who is wrong? It is not an exact science, so the valuers should be open for communication. Make a phone call, it will defuse the situation from the beginning, not just send in the report. Valuers forget one thing, brokers are their customers, so show some customer service
  • Marios Rokka | 11 Dec 2013, 11:18 AM Agree 0
    We have all had experiences with varying valuation prices and too many to mention and it seems that the report is an opinion based factors such as comp sales.
    Rubbishing the valuers is not the answer regardless of the valuers opinion, and we all have to also understand the increased pressures which they are now placed under to conduct inspections, compare sales and complete the report all within a relatively small window of time.
    The unfortunate thing to this is the issues that we continue to face when dealing with the result of an unfavourable valuation.
    Answer? An investor client used to prepare his own 'property report' with comp sales and highlights of each of his properties to give to the valuer when meeting with them on site. The result of this report supported our estimate of vlaue and we were never disappointed with the valuation report once complete. A lot of work but maybe just putting up as much supporting information for the valuer to provide a suitable result by mitigating any issues just as we do when putting together a file for approval. This seemed to work for him.
  • Papery | 11 Dec 2013, 11:42 AM Agree 0
    Communication lines between Brokers & Valuers were severed because of apparant collusion. Cant see us going back to the future anytime soon.
  • Casey | 11 Dec 2013, 11:43 AM Agree 0
    Pre-GFC you knew who the firm was going to be and pick up the phone. Now virtually every bank is using some val processing house. Apparently in place for improved QA purposes but in the end Just another bearucratic impediment.

    I don't think it is so much a communication gap between brokers and Valuers, as the ones I do get to speak to generally are very happy to talk about a deal or more generally market areas.

    What is frustrating is the lack of communication from some lenders around valuations. "We can't tell you who the Valuer is. We will log your request through our system." I mean really, you think I can't pick up the phone and call all the major firms to see if they have the job? And yes they will speak to me.

    I don't see why we can't just speak to Valuers direct. Lenders can still use valuation houses for their QA, but give everyone the tools and access to make processes smoother and resolutions quicker. At the end of the day it doesn't matter necessarily what the outcome is as long as it is resolved rapidly.

    It's better to get to a quick NO then drag everything out because no one can talk to each other.
  • Melbourne Broker | 11 Dec 2013, 12:11 PM Agree 0
    The situation with valuers is just another example of the damage that can be done when utilising technology to drive prices down. Whilst this is good from a bottom line perspective it is not doing anything to improve the valuers reputation in the eyes of the customers or brokers. It has devalued the role of a valuer who are being given short times frames in which to get their jobs done and it is now merely a transaction. This attitude of ignoring the customer is fairly typical in banks. Look at history, closing branches, forcing customers to ATMs, and phone and internet banking. The aspect that is being continually overlooked is that there is a customer at the end of these transactions.
  • Perth Broker | 11 Dec 2013, 12:18 PM Agree 0
    I agree totally with this concept. Get the valuers talking to the brokers.

    I have noticed a very worrying trend in Perth of late where I complete an RP Data On Line valuation when I order each valuation or submit a deal. For those that have not used this tool, the valuation report will provide 3 figures - the lowest valuation amount to the highest valuation amount and also the mid range of the valuation amount.

    Guess what the valuers seem to be also using this report and almost without exception the valuers are using the lowest valuation amount as their value.

    Hardly professional!

  • Stephen Sillett | 11 Dec 2013, 12:50 PM Agree 0
    The consensus appears to be we could do without the valuers. With the online technology that most of us have are the banks just ordering a valuation to tick a box for approval. ANZ seem to be ahead of their opposition in regards to valuations. When was the last time a bank made a claim against a valuer
  • Marios Rokka | 11 Dec 2013, 12:59 PM Agree 0
    The collusion piece stopped brokers being able to choose the valuer, though the discrepancies in range of values still occurs.
    As an industry, what can we do to help avoid the pain?
  • BONED | 16 Dec 2013, 09:43 AM Agree 0
    "The call for greater collaboration comes as CBA launches as a new valuation disputes process to “enable valuers to better understand the broker’s position and brokers to better understand the valuation outcome”.

    I will never understand how 2 Valuers from the same Office can value 2 blocks of land within metres of each other, in the same street, similar size, within a few $00 on the Contract, yet one values at contract & the other $50k under?! Hardly a case for professionalism is it!
  • Valuer | 19 Dec 2013, 01:29 PM Agree 0
    The valuer's name and contact details used to be made available to the brokers (on the reports) and I used to receive a phone call from a broker on around 75% of my valuations asking for the value to be put up higher. This was pretty standard practice from brokers a decade ago. Used to drive me and all valuers absolutely crazy and chew up significant amount of time from our day. Almost always the phone call had nothing whatsoever to do with whether the value was correct or not, but rather was based on the broker's need to get the value higher to avoid LMI, or simply to make the deal go through.

    No valuer wants this situation to come back, let me assure you.
  • Stephen Sillett | 19 Dec 2013, 01:42 PM Agree 0
    I totally agree with the comment from "Valuer" no body wants to waste anyone's time or drive anyone crazy. The issue in the industry is inconsistency from valuer to valuer. I had a valuation completed by 2 valuers in the last month and the difference was $35,000 on a $300,000 property. From a professional body of valuers there should not be this much variation, which tells you it is only an opinion and not based on factual information
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