Home Valuation for Refinance - Ways to Increase Valuation?

azero on 08/11/2022 - 10:38
Last edited 08/11/2022 - 10:59 by 1 other user

Hello fellow Bargainers,

I decided to refinance my mortgage to Westpac as ANZ is screwing me over with a 0.5% higher interest rate than what they give to new customers. Tried calling them to see if they can give a better rate and ended up listning to the on hold music for 40 mins.

Anyway, since I refinanced about an year ago, my LVR is close to 80% and if they devalued the house now I might endup being slighly over 80%. It is a 2 year old house and after 1 year of moving in, the valuation went up by nearly 200K so I guess it might come down this time.

I have a valuer coming in later this week, so my questions are-

Do they only look at structural things for the valuation? Do they consider things like kids drawing on the walls and consider it a negative?

Also, are there any simple things that can be done to make the valuation higher?

Thanks

Financial

Comments

holdenmg on 08/11/2022 - 10:46

Scroll down to:

Easy hacks to increase the value of your home

https://www.yourmortgage.com.au/refinancing-home-loans/which…
- oscargamer on 08/11/2022 - 11:58
  
  +1
  
  Sale price (which is what your article is about) is almost not relevant to a bank valuation.
  
  The bank is looking to what they will get if it needs to be sold very quickly, so they are not interested in what it might be worth on the best day to an eager buyer.
fullmetal on 08/11/2022 - 10:47

+2

I have done my valuation last month, from my understanding they look at the size of the living space. Don't really care about aesthetic. Did a lot of measurement. However, one thing I've noticed in the was report they look at drainage and slope at your place partly due to places becoming worthless like lismore.
Keplaffintech on 08/11/2022 - 11:02

+1

Do they consider things like kids drawing on the walls and consider it a negative?

no. usually basics like land size, number of bedrooms, size of rooms and overall floor area, general age of fittings (that's if they even go in your house)

often a valuation will be road-side, which means they don't even go in the house
footyboy on 08/11/2022 - 11:12

+2
Broker here - check with your broker for which banks allow valuations that are;

free

done without credit checks

done before loan submission

There's few that will do all 3 👌

Aidan.
- azero on 08/11/2022 - 11:21
  
  thanks, he said he can't do the before submission valuations for westpac but he can for anz. Does that sound right ?
  - footyboy on 08/11/2022 - 11:24
    
    +1
    
    @azero
    No, Westpac 100% allow free and up front valuations.
    
    Aidan.
    - azero on 08/11/2022 - 11:31
      
      Thanks, I just asked him.
      
      He said, they were ok with a desktop valuation initially but later said that they need a full valuation. - do you think it is true or is he lying ? The only reason is I'd have preferred for a upfront valuation, as if it is a lot lower than what I expect, I will just end up with a hit on the credit file.
      - footyboy on 08/11/2022 - 12:31
        
        @azero: @azero
        I wouldn't know if they're telling the full story or not.
        
        Put your foot down, I'd always do valuation prior to credit hit where possible.
        
        Aidan.
      - tomleonhart on 08/11/2022 - 13:12
        
        @azero: "He said, they were ok with a desktop valuation initially but later said that they need a full valuation" sound plausible. I have had this happened to me as a broker many times in the past. It varies on locations / property type etc… Their system might "accept" it at first but then usually a human intervention will force a full valuation.
        
        footyboy on 08/11/2022 - 14:24
        
        @tomleonhart: @tomleonhart that's right, some lenders are more reliable than others.
        
        Aidan.
holdenmg on 08/11/2022 - 11:31

So, I'm just wondering if you increase/decrease your Home Insurance Sum Insured in concert with the valuation?
Obviously, the replacement cost would be more if the worst happened.
brendanm on 08/11/2022 - 11:49

When mine was done, the guy just drove by and made sure it actually existed as far as I know. They couldn't care less about the paint on the interior walls.
jorf on 08/11/2022 - 12:05

+1

You'll probably be fine. We got a lowball valuation from CBA, who were with at the time (real valuation, not a desktop). Spoke to Westpac and told them what we needed the valuation to be, they ordered another valuation with a different company and it magically came back as $1k more than we needed.
Some Human on 08/11/2022 - 20:25

When I refinanced, the bank asked me to get my own valuation. I asked the agent who sold it to me to do it. He said "do you want me to tell them it's worth more than it is?" I said yeah. So he did.
He's a top bloke.

Home Valuation for Refinance - Ways to Increase Valuation?

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