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Claws come out in broker/valuer dispute

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Australian Broker | 27 Jun 2013, 07:00 AM Agree 0
Brokers and property valuers took up arms in our comments section following yesterday's headline piece (warning: Article contains violence and harsh language)
  • Sam | 27 Jun 2013, 10:07 AM Agree 0
    "pushing down fees paid to lenders" "diminishing fees" what does how much a valuer gets paid have to do with the value of a property. Does this mean that if a valuer is paid more by lenders for their service, they would value a property higher?
  • PeterT | 27 Jun 2013, 11:17 AM Agree 0
    My own experience is that it's pointless trying to argue with a valuer. Providing alternate sales data is highly unlikely to get them to change their mind, and even if they do, when the loan is in LMI territory, the insurer mandates that the lender must take the first valuation, making the review pointless.
    Quicker and more efficient to move on to an alternate solution with a different lender and valuer. Every broker knows that a different valuer will almost certainly give a different result.
  • Tim H | 27 Jun 2013, 11:53 AM Agree 0
    Having had 30 years in the mortgage industry I have seen this issue of perceived low valuations rear its head on a number of occasions. The valuers are being asked to reduce their fees by the lenders so the lender can say to the client we have cheap get in fees. The lenders are also driving the valuers for quick turnaround (ie; We can approve the loan faster than other lenders).
    The clients expectations of their property value is in the vast majority of cases higher than reality because 9 times out of 10 they have not done sufficient research to have an accurate figure.
    The valuers are also in the same boat. How can a valuer from the south of Sydney have a true and proper understanding of the market on the North Shore for instance. They definitely would not have an accurate understanding of the local market.
    The whole valuation process has been dumbed down by the industry it is serving. The valuers of today, with all due respect, in the main don't hold a candle to the guys that were doing the job twenty years ago. Pay peanuts get monkeys.
    The only way to improve the system is to pay the valuers a fair and reasonable fee and let them do a proper job.
  • Papery | 27 Jun 2013, 11:58 AM Agree 0
    Agree PeterT. In respect of being able to have a discussion with a valuer to 'slightly push-up' a val to avoid LMI or a deal falling over, my understanding was that this situation is exactly why valuers PI went up & Lenders & valuers started getting toe-ey & why both are so pedantic now & that the last thing that valuers & Lenders wanted was the apparent collusion with Brokers, irrespective of whether the val needs to be improved a 'little' or a lot.
  • Steve McClure | 27 Jun 2013, 01:03 PM Agree 0
    No Sam, you misquote me, I said "pushing down fees paid to valuers". I further go on to say they are becoming more data based than expert opinion - because that's what lenders want. Valuers have a prescribed instruction and aren't being less professional, I've paid $100 for some impressively detailed valuations, for example from (but not limited to) CBRE. If that's the quality lenders are getting, we are in good hands.

    Over recent years, haven't we and many vendors at some point been astounded by how low a property sold for? Simply the number of bidders causes variations. I respect and trust the professionalism of today's valuers.
  • Philthyo | 27 Jun 2013, 02:59 PM Agree 0
    I take exception to a commission based salesperson trying to take the moral high ground on this issue!! If you think you know it all put your money where your mouth is and you lend the client the money....
  • Kevin | 27 Jun 2013, 03:01 PM Agree 0
    You know the system is broken when you need to shop lenders to find the best valuation.
  • Garry | 28 Jun 2013, 09:28 AM Agree 0
    Philthyo - Its not us who have taken the high moral ground - its you and you have indicated this by you own comment -"put your money where your mouth is and you lend the client the money...." You seem to be assuming the clients are borrowng too much or their equity will somehow be eroaded over time. Yet since property records have started being recorded property values have doubled on average every 11 years. It really would be best if you let the bank decided these issues. If this is your thought pattern you are clearly overstepping the mark. Your job is to value the property with provable AND comparible properties - nothing more.
    We are well aware of the fact the bank wants to be assured they would get their money back "next week" if the property had to be re-sold. If the banks have told valuers to specifically value the properties in a certain way then tell the truth and get it out into the open so we know what we are dealing with.
    If this isnt the case the just value the properties properly and professionally.
    Also, most Brokers are not mere salesmen (except for those who need a computer to tell them which is the cheaper loan - and they WONT save you). The best of us focus on proper financial structure so interest rates and commissions dont enter into it. The general public AND banks are not complaining about brokers. They ans we are compaining about valuers. We cant all be wrong can we???????
  • Philthyo | 28 Jun 2013, 09:48 AM Agree 0
    Garry - you can be wrong and you are by assuming I am a valuer. Sometimes you have to just accept the umpire's decision and get on with the game.
  • alex | 28 Jun 2013, 09:58 AM Agree 0
    Guys I dont think it has anything to do with the valuer, its the banks teling the valuers to go low on there valuation,
  • Angelo | 20 Jul 2013, 01:58 PM Agree 0
    @sam. Has all to do with it. if the valuer gets paid more per job that means less jobs they have to do per day and therefore they can concentrate on producing good quality reports and research on 3 jobs instead of 6 jobs. Cost of valuations have not increased in 10yrs maybe by $20 if you lucky. Banks expect us to contact the client, inspect the property, look at comparable sales, do the research, type the report, go throught QA process and then send them the job all within 48 hrs!!! thats not asking for much!!
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