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The top 10 property valuation myths

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Australian Broker | 12 Sep 2012, 12:00 PM Agree 0
Do your clients think more rooms equals higher value or that a pool holds no value? Well, they've probably fallen for one of these valuation myths
  • Andrew | 14 Sep 2012, 01:44 PM Agree 0
    Now all we need is for the valuers to agree on a method of valuation and all do it the same way and we may have something. It is far too subjective and there is no viable dispute process.
  • BONED | 14 Sep 2012, 03:43 PM Agree 0
    "In compiling a valuation report, valuers must adhere to a strict process heavily reliant on factual data and appropriate methodology." Which is why 2 Valuers in the same office value the exact same property a month apart and come up with a $40k difference on a $400k property! What Andrew said...
  • Henry | 14 Sep 2012, 08:13 PM Agree 0
    The article infers that valuation is an objective science. It is not. I have seen valuations done by different valuers for the same property that are 5-10% apart.
    Also, valuers are not independent. Some lenders do give instructions to valuers that may influence their valuations.
  • SEQ Broker | 05 Jun 2017, 09:09 AM Agree 0
    The trouble is the word "valuation". it simply is not. It is a risk assessment which is conducted under the parameters of the lenders instructions. Lenders should simply come out and be open and say it is a risk assessment figure. There is no relation to value.

    What you can sell a property for if the sale needs to be executed in 90 days is not a valuation. Its a method of calculating risk. Yet this is a popular instruction to valuers (heresay from a valuer) and an example of how instructions can cause a change in the resulting figure, ergo, we are not realising value, we are seeing a figure pertaining to risk.
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