Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Online property valuations: The greater of two evils?

Notify me of new replies via email
Australian Broker | 23 Sep 2013, 08:00 AM Agree 0
Brokers and valuers don't always see eye to eye, but one property industry spokesgroup says the real problems begin when clients go online
  • Regional Broker | 23 Sep 2013, 10:16 AM Agree 0
    This article is so true , the on line property valuation are not "sworn" valuations and should be renamed on line Market Estimates , as that is what they are .

    It will be interesting to see developments here as RP data own Valex who the majority of the lenders use ( much to my concern) as their valuers.
  • Tony | 23 Sep 2013, 10:16 AM Agree 0
    Don't follow their beef here. Surely it's a case of educating the borrowers. What's the difference between an online valuation and a real estate agent's appraisal. Not a lot I suspect.
  • Allan Faint | 23 Sep 2013, 10:22 AM Agree 0
    am sure on line valuations can be confusing but no more confusing than have 2 valuations done on the same property within days of one another and having one give risk ratings of 3, 4 and 5s while the other is just 1s and 2s. in addition to the 30,000 difference in valuation.
  • PeterT | 23 Sep 2013, 10:31 AM Agree 0
    Online valuations obviously aren't going to be 100% accurate, but honestly, what valuations are? In many cases for lending purposes, it doesn't actually need the level of accuracy suggested by the REINSW.
    Most lenders are using online valuations as a way to get the valuation completed quickly and cheaply when the deal stacks up fairly well, in most cases with an LVR of 80% or less.
    If the valuation falls within a suitable margin of error to the purchase price, they'll proceed on that knowing that they don't need it to be 100% accurate for the lending purpose.
  • Perth Broker | 23 Sep 2013, 11:16 AM Agree 0
    Agree with Allan Faint here. It seems that all the written valuations by "licenced valuers" are merely completed as a best guesstimate - there is certainly nothing scientific in what the valuers present. As for unique features of a property the valuers generally totally ignore these.
  • Ian Graham | 23 Sep 2013, 11:25 AM Agree 0
    Could it be that the REI is finding it a bit harder to get inflated prices for vendors when buyers have done a bit of research before they talk to the vendors agent?

    To my knowledge the online sites don't profess to take the place of a valuation they merely provide an estimate of value.

    Me thinks the REI protest too much.
  • Papery | 23 Sep 2013, 03:45 PM Agree 0
    Agree Ian, seems to me the REINSW (& I expect in the other states) dont like the consumer knowing too much....demystifies the Real Estate sales process, perhaps keeping the sales agents on their toes a little more..give more knowledge to the consumer & with better knowledge comes better power. and its amazing what info you can find on the Internet these days, especially when your looking at a property transaction...but as always Buyer Beware!
  • Steve | 24 Sep 2013, 12:54 PM Agree 0
    I have had many run ins with valuers over the years with terrible valuations, however i can say at the end of the day this is only amplied by a computer doing it. At least in many cases valuers if it is onsite valuation can take into account features. A computer will not at anytime & only the basic data sitting in RP data files. All these people saying oh finally it will help the buyer against the terrible evil agents. No so, in fact in some cases this flawed approach has given much higher estimates than what the property would be worth just because one big sale went through with massively different features, therefore helping an inflated price. Also if everyone seems to say no buyer would rely on this yet in same comment say it is going to help a expose a true price instead of the agent, therefore they are now believing this. It is a completely useless system & is rarely close to any real value.
  • Brad | 24 Sep 2013, 03:50 PM Agree 0
    Allan Faint is being a bit precious. A $30,000 difference between valuers on a $600,000 val is within the accepted margin for error in a valuation! I can only assume he has a 0% margin in his chosen profession...
  • Allan Faint | 25 Sep 2013, 11:06 AM Agree 0
    Brad, the $30,000 is neither here nor there. (Though I would prefer less variation as this in some instances can be the differnese between paying LMI or not etc) the main concern is the personal opinion expressed within the risk rating, 1 & 2's compared to 4 and 5's. that can kill a deal for no reason other than personal opinion. often mean a valuer has to be paid again to redo what was already done.
Post a reply