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19/10/14
15:15
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Originally posted by Scotty B
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Banks are tightening lending criteria, so a lot of valuers are now doing a proper site visit valuation with full measure up etc rather than a desktop or the old drive by and make sure there is a house where they say it is.
As a profession they adhere with the doctrine of prudence and it would be rare to see valuation above market price, which is accepted as being what the buyer is prepared to pay. That said, we used to obtain up to 115% finance by doing groundwork prior to purchase, having some good contacts and getting properties at the right price .... but those days are well and truly over.
In fact plenty of contracts are now falling over on valuations, reported by both agents and valuers, something I believe will be a continuing trend. I like to think of them saving people from themselves.
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In my experience the big four tend to undervalue by 5%-10%. Contracts falling over? Sure, in Karratha, Port Headland and/or Gladstone that may well be the case, but in the major metropolitan areas, I don't think so.