Emotional brokers and pride-driven valuers: Why they can't seem to get along

by AB04 Jul 2013

The tension that often exists between brokers and property valuers comes down to several key issues, according to The Selector Group’s Matthew Zappia and Smartmove’s David Brell: Namely, valuers’ pride and brokers being overly emotional.

Zappia tells Broker TV that mounting pressure from banks on valuers for consistency, as well as valuers’ ‘proud nature’, contribute to many of the problems valuers have with brokers.

“I think…valuers are very pride-driven people, so if they’re using comparables from, say, a buyers’ agent like myself or a sales agent on the road who’s giving them some data to go off; I think they find it a little hard to take on that information. And obviously the banks, they want to see a valuer that is very consistent in the market, otherwise they won’t use those valuers again.”

On the other hand, Brell warns that brokers have a tendency to take on their clients’ emotions – something which valuers struggle to deal with.

“Mortgage brokers take on the emotion from the client so we deal with a relationship which is the hardest piece behind looking after the mortgage. We take on those demands. It’s something that we have to manage and manage well, so a lot of the negativity could be on the back of those emotions.”

However, Brell says there’s no point in brokers battling valuers.

“At the end of the day, valuers are professionals. They’ve gone to university, they have a huge task at hand and there’s a lot more that goes behind a valuation than just a figure. And it’s a matter of weighing up the emotions of the broker versus the professionalism of the valuer. So I don’t believe there should be any negative feelings towards the valuers – it’s just a matter of working with them as professionals. Just get it right up front, talk to the client, prepare them for the potential event of a lower-than-expected valuation.”

To watch the full interview with Zappia and Brell, CLICK HERE

COMMENTS

  • by Papery 4/07/2013 8:36:15 AM

    Nothing to do with commonsense

  • by Melbourne MM 4/07/2013 9:20:21 AM

    Just because valuers are profesionals doesn't mean they don't take short cuts, get things wrong occasionaly, make suppositions based upon their judgment of the owners character / motives.......etc. 2 valuations done recently for a purchase. Price $640k. Valuer 1 - $500k. Valuer 2 - $640k. Within a week of each other. Are they both right?

  • by WP 4/07/2013 9:33:57 AM

    I have had some low valuations, and after a conversation and using my own data, I agree with them. Sometimes before even ordering the Val I suspect the clients estimate is wrong.
    I also have some absolute shockers.
    For me, this has mostly occurred on difficult property’s to value.
    A beach from property in the south coast, different by $400K, about 30% to what I believe to be correct, the local agents told me, and to what the property had been purchased for at Auction 1 year before.
    I had 4.5 Hectres in a western suburb valued, Valex allotted the job to a North Sydney Valuer.
    The two houses were old, and in terms of value, fairly insignificant, and the area was effectively all large lots (1 to 4 hectres)
    Client estimate, 2 Mil.
    My estimate from own research taking two years worth of sales, and averaging price per hectare. 1.85Mill
    Valuer $900K
    The value wasn’t even consistent with the comparable sales in the valuation.
    The valuer spent a lot of time measuring the house and the rooms and looking at the quality of the fit out, but clearly didn’t look at the land itself. He was a city valuer was valuing 4 hectres like he would value a unit in North Sydney.
    There were two properties in the valuation, both with lower quality houses on lots less than half the size, in a flood prone less desirable area. (According to the val). They sold for 700K each.
    So a lot, that is larger than the two lots combined, with two houses both of which are both are better, and in a better location is only worth 200K more?
    Sent another valuer myself, who was from the west, and they valued it at 1.8Mill. She didn’t even bother looking at the houses closely, effectively she valued the land plus a tiny bit for the house.
    Bank would not re value for application, so client put the property on the market to cash up. It sold within a few weeks for 1.77Mil. Almost double the valuer. His was out by almost 100% (or 50% depending on which way you look at it)
    There is a reason Valuers are getting a bad wrap, and where there is clearly a problem, Banks need to consider getting a new valuation.