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If you know how to instruct a valuer you can manipulate the valuation by as much as 50% depending on the criteria and the comparative sales used.

Just look at the property used in the Federal Court by the ACCC which was the same one the QOFT used in its Tribunal Hearings.

  • Purchased at           $164,900
  • ACCC Valuer          $135,000
  • Iain Herriot             $ 90,000
  • Federal Court         $165,000
  • Resold                     $175,000 within 12 months of Herriots Valuation

How can the valuations be so far apart, were they Fraudulent or just incompetent, or was it the way they were instructed?

The following valuation was completed in major cities throughout Australia in areas with new and old townhouses, with no changes as to size or quality other than new versus 5+ years old so that views or other factors did not change the outcome.

The Herron Todd White Synopsis shows some interesting outcomes

A market commentary on new and 5-10 year old 16 square townhouses (150 sq metre) in Adelaide, Brisbane, Gold Coast, Melbourne, Newcastle, Perth and Sydney.  25th June 1999

The Results                      NEW                            5-10 Year Old                Difference           %

  •  Adelaide    $240,000 -$275,000         $180,000 - $230,000            $52,500          20.39
  • Brisbane     $300,000 - $380,000        $280,000 - $310,000            $45,000          13.24
  • Gold Coast $140,000 - $150,000        $100,000 - $120,000            $35,999          24.14
  • Melbourne  $240,000 - $300,000        $175,000 - $230,000            $67,500          25.00
  • Newcastle  $150,000 - $200,000        $120,000 - $150,000             $40,000          22.86
  • Perth         $182,500 - $235,000         $145,000 - $175,000             $48,750          23.35
  • Sydney      $360,000 - $410,000         $300,000 - $350,000             $60,000         15.58
  • Average                                                                                             $49,821         20.65%

All the media had to do to make someone look bad, was to instruct the Valuer to use older properties so that the Valuation came in lower. The sad part is how many people listened and sold their properties at the worst possible time and lost money, the media should be repaying these people the money they lost. 

The main point here is that the Valuation Industry needs to gets its act together and start doing Accurate and Consistent Valuations, and that is indisputable, as it should not be this inaccurate and should not be a guessing game.