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Brokers and valuations

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Australian Broker | 11 Sep 2013, 12:00 AM Agree 0
RP Data’s Craig Mackenzie says the advance of technology means valuations will be less frustrating for brokers and borrowers
  • Jennifer | 17 Aug 2015, 05:34 PM Agree 0
    Could you please tell me does a broker get charged for having a valuation done for a client A broker did one for us to evaluate our serviceability, we didn't go ahead any further. Should he have charged us $350 , he said he had to cover that cost I haven't paid him as yet. Many thanks. Jennifer
  • Michael Kent | 18 Aug 2015, 09:49 AM Agree 0
    DO NOT PAY HIM JENNIFER!! what a joke.

    As a broker I can get free valuations done through 3 lenders I use due to the volume I put through.

    As long as I don't abuse the privilege it is fine.

    What you wrote is a little confusing. I am not sure why the broker would get a valuation done to establish your serviceability. That is based on your income and current debt and if you are married and have kids.

    I order valuations for my clients almost everyday and at no cost UNLESS they proceed with the application, are fully approved and then the application fee (usually around $350) covers that valuation.

    As stated above, I don't abuse it. If for example I ordered 45 valuations and put through 3 applications then yes the banks would be asking questions.

    Most brokers you will find can get valuations done at no cost.

    The bank I order them through still gets charged by the valuation company but they are willing to wear that cost if it means by getting the valuation done there is a good chance the loan can be written.

    Do not pay this person. The fact they have billed you $350 for doing nothing is an embarrassment to our industry. I would even make a complaint to the FBAA and MFAA (find out which body they are a member of).

    Some brokers will charge brokerage IF your scenario is very complex and they have spent numerous hours trying to help you for no result.

    If he has told you he was charged for getting the valuation done ask to see an invoice with the address of your property on it.

    Hope that helps!
  • Harold Spencer | 18 Aug 2015, 10:56 AM Agree 0
    Hi Jennifer, the simple answer to your question is yes, anyone who orders a valuation has to pay for it. If it was part of an application to a lender then most BUT NOT ALL lenders will pay for the valuation. To simply say don't pay without knowing all the facts is getting ahead of oneself. Please go back to the broker ask for a copy of the invoice and a copy of the valuation and then make your decision from there. Most brokers are here to assist. Good luck and I hope you sort this out to everyone's satisfaction.
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