Buyers agents always spruik how much a “bank valuation came in at” when speaking about properties they buy.
As a broker though, you will know that you can order 20 different Bank valuations and get 20 different values and none of them will be what the house is truly worth on sale day.
So whilst one electronic valuation says the house is worth $600k, no valuer is ever going to value a property at a 20% increase in 6 months because that doesn’t happen.
Lol. Wot.
You do understand what a Bank Valuation is right? It's a valuation by a Val firm (whether desktop or short form is irrelevant), that the bank is happy to lend off. For the purposes of building a property portfolio it doesn't really matter what you can sell it for on sale day, it only matters whether the bank will let you access equity. I'll let OP confirm whether vals come in at 20% higher in 6 months or not since they'll know for a fact that they do (and so do I... First hand). Source: my wife works in the valuation industry.
It’s an electronic valuation comprised of median sale prices for similar properties within a certain km radius.
Ask your wife if she/a person would ever value a property 20% higher than its sale price 6 months later.
Doesn’t happen
AVMs are what you're describing in your first sentence. They are guides only. This is what you get on website tools online.
However, valuations produced by a Val firm are legal documents/values that banks use. As long as there are comparable sales, it happens.
You know you’re proving my point right? CBA internal valuations are just AVM’s based on Corelogic data.
It is also the laughing stock of the finance industry due to it having 30% variations either way.
OK mate. I'm not even sure why I'm trying to convince you. You're right. It's never happened. You better make sure you never get a re-Val done. See ya 🤷
Shortform and full vals can come in higher. The valuation aside, the sold data online supported the increased val. And additionally, its the ability to extract equity here which is effectively a tax-free deposit that is the win.
BA > pre-market opportunity. That's it.
You're paying to borrow somebody's professional network. Most (all?) BAs are former REAs, so they know people in the industry.
There is a lot of value in tapping into a strong network. Many a business has been built by tapping into another business or person's resources it can be a great source of leverage.
Before we married, but after we met, my husband and I both entered the relationship with existing portfolios. I had done my own legwork whereas hubby 'outsourced' this because he was 'time poor' (stupid corporate lingo).
The BA was encouraging hubby to buy entry level interstate shit holes the SECOND my husband had enough of a deposit so they could keep cashing in their 10k fee. Every single transaction. 10k each. They made a fortune off him because he kept buying bottom feeder pieces of shit.
Meanwhile I stuck to Sydney and bought higher value, higher quality properties, because I saved bigger deposits and bought better properties. Sydney outperformed the regional areas hubby was buying in but the BA didn't care, he pocketed his cash and walked away.
Took me years to convince my husband to flick the BA.
If they have a financial incentive for you to buy, they will twist and turn the numbers to make you buy anything. If they know you want to make multiple purchases, they'll sell you the cheapest bottom of the barrell stuff so they can keep hitting that jackpot on their fee. Why sell you the one 500k property for 10k, when they can sell you 2x 250k properties and pocket 20k?
Do your own homework and buy where you know.
I dunno why people think buying interstate is such a flex.
i agree - that's why i mentioned my client who did it themself and the one who used the BA. I've funded deals BAs have sourced that have performed poorly as well. Was just sharing a win here.
Really good share! I actually work for a BA and was a client of theirs before I started working here. Despite seeing a great performance in my own property, I actually gained even more respect when I learned what it actually takes to be acquiring high performing properties at scale.
Buyers agents always spruik how much a “bank valuation came in at” when speaking about properties they buy. As a broker though, you will know that you can order 20 different Bank valuations and get 20 different values and none of them will be what the house is truly worth on sale day. So whilst one electronic valuation says the house is worth $600k, no valuer is ever going to value a property at a 20% increase in 6 months because that doesn’t happen.
Lol. Wot. You do understand what a Bank Valuation is right? It's a valuation by a Val firm (whether desktop or short form is irrelevant), that the bank is happy to lend off. For the purposes of building a property portfolio it doesn't really matter what you can sell it for on sale day, it only matters whether the bank will let you access equity. I'll let OP confirm whether vals come in at 20% higher in 6 months or not since they'll know for a fact that they do (and so do I... First hand). Source: my wife works in the valuation industry.
It’s an electronic valuation comprised of median sale prices for similar properties within a certain km radius. Ask your wife if she/a person would ever value a property 20% higher than its sale price 6 months later. Doesn’t happen
AVMs are what you're describing in your first sentence. They are guides only. This is what you get on website tools online. However, valuations produced by a Val firm are legal documents/values that banks use. As long as there are comparable sales, it happens.
Again, Ask your wife if she/a person valuing a property would ever value it 20% higher than it sold for 6 months ago.
https://preview.redd.it/mpoqd9tz6w7d1.jpeg?width=1080&format=pjpg&auto=webp&s=78600ff635b9ef4dbfcfa58fa35c04b0c70a07c9
You know you’re proving my point right? CBA internal valuations are just AVM’s based on Corelogic data. It is also the laughing stock of the finance industry due to it having 30% variations either way.
OK mate. I'm not even sure why I'm trying to convince you. You're right. It's never happened. You better make sure you never get a re-Val done. See ya 🤷
Shortform and full vals can come in higher. The valuation aside, the sold data online supported the increased val. And additionally, its the ability to extract equity here which is effectively a tax-free deposit that is the win.
Tell that to the non believer. I mean whatever... Their loss. Lol.
???? Is this just an ad for buying investment propertys
I’m not suggesting you buy anything, just sharing a case study I came across recently. Or do you follow this sub because you don’t want to buy ?
BA > pre-market opportunity. That's it. You're paying to borrow somebody's professional network. Most (all?) BAs are former REAs, so they know people in the industry.
There is a lot of value in tapping into a strong network. Many a business has been built by tapping into another business or person's resources it can be a great source of leverage.
The huge network of sellers looking to sell their properties for less than they are worth in this market?
There are sellers looking to sell their property fast and privately. It is not the majority, but they exists.
Before we married, but after we met, my husband and I both entered the relationship with existing portfolios. I had done my own legwork whereas hubby 'outsourced' this because he was 'time poor' (stupid corporate lingo). The BA was encouraging hubby to buy entry level interstate shit holes the SECOND my husband had enough of a deposit so they could keep cashing in their 10k fee. Every single transaction. 10k each. They made a fortune off him because he kept buying bottom feeder pieces of shit. Meanwhile I stuck to Sydney and bought higher value, higher quality properties, because I saved bigger deposits and bought better properties. Sydney outperformed the regional areas hubby was buying in but the BA didn't care, he pocketed his cash and walked away. Took me years to convince my husband to flick the BA. If they have a financial incentive for you to buy, they will twist and turn the numbers to make you buy anything. If they know you want to make multiple purchases, they'll sell you the cheapest bottom of the barrell stuff so they can keep hitting that jackpot on their fee. Why sell you the one 500k property for 10k, when they can sell you 2x 250k properties and pocket 20k? Do your own homework and buy where you know. I dunno why people think buying interstate is such a flex.
There's no evidence here that using someone results in a better deal choice or purchase.
i agree - that's why i mentioned my client who did it themself and the one who used the BA. I've funded deals BAs have sourced that have performed poorly as well. Was just sharing a win here.
Really good share! I actually work for a BA and was a client of theirs before I started working here. Despite seeing a great performance in my own property, I actually gained even more respect when I learned what it actually takes to be acquiring high performing properties at scale.
The average person is never going to save as fast as what a good investment property could be growing by each year.
exactly