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Most people think that Valuations are an exact science and that the valuers all have similar opinions. How accurate is a Valuation when valuers can not even agree on what a property is worth. Sometimes they even contradict their own valuations, people like Herriot change there valuations by as much as 20% within four months, this can be seen on the Herriot Page.

Here are some of the different valuations from valuers, please can someone explain which one is correct, or are they merely opinions which are totally inaccurate? Jenman had everybody believing people were paying too much just because of a low valuation from Mr Herriot, a valuation that he instructed in a manner that was always going to come in as low as possible. The way a valuer is instructed and the personal preferences of the valuer can vary the valuation greatly.

Mermaid Waters Lot 40          

  • Corbetts                14/10/1998                  $205,000 
  • Herriots                 20/10/1998                  $210,000
  • Preston Rowe        22/10/1998                  $215,000
  • Taylor Byrne          21/10/1998                  $235,000

Who is correct, there is a $30,000 difference all made in the same month, which is 15% difference?

 

High St Southport

  • Kohler Bird                    10/11/1999         $150,000
  • Eccleston Fraser          25/11/1999          $130,000-$135,000 (Variable)
  • PRP                               17/1/2000            $125,000

Which one is correct?

We can also point out a Valuation done by Eccleston Fraser at Carrara for a Gold Coast City Councillor for $147,000, he bought if for $149,900 from the developer while it was being sold through PRD Realty. Yet when the exact same property next door sold the Valuation dropped by $15,000 to $132,000 simply because the purchaser was from interstate rather than local. Upon speaking to the valuer he said that the valuation was lower because the "purchaser did not know the values". Chris agreed and said that he had "shown him a copy of your valuation for $147,000" so why did it change overnight? He then terminated the call after maintaining his valuation for $132,000 stands. 

Herron Todd white also valued a property for the developer to get $20,000,000 worth of development funding and they said the properties should sell for $220,000 we started selling at $220,000 as per the HTW valuation, they then dropped the valuation to $170,000 a $50,000 drop for only $200,000 worth of investment property finance. Was it because Chris company was selling or was it a mistake, either way it was totally unprofessional.

If the first valuation for $220,000 was wrong and a mistake as Mr Lacey the CEO of HTW stated, that means that a developer got $20 Million worth of funding wrongly, or possibly fraudulently. The interesting point here is the Developer paid $20,000 for his valuation yet they were able to pick up the mistake in a valuation that only cost $200, interesting?

If the second Valuation was wrong, which is what NAPC maintained, the reason being is that you would think there would be more work and analysis put into a valuation for $20,000,000 finance rather than a valuation for $220,000 of finance, therefore the first one should have been correct. The pricing would certainly suggest this as the $220,000 Valuation would have cost $200 whereas the Valuation for the $20 Million would have cost $20,000. It is hard to believe the first valuation was wrong when it cost 100 times as much, or is that just being cynical?

Other Valuers valued at the $220,000 selling price. The Valuers got to the stage that they would value properties for less if they knew marketers were selling them, this is still happening. What we want to know is, how does a property change in value because of where the purchaser lives or who is selling it?  We don't expect a valuation to be any different because of where a purchaser comes from or who sells it, are we wrong in expecting this?

When are the Valuers going to get their act together and give an accurate valuation? Drunk blokes down the local pub are more accurate than this!