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The Valuers Act 2003 requires a person to be registered before they may practise or advertise as a valuer. A corporation must not practise or advertise as a valuer unless at least one director or employee is a registered valuer. As you can see they are regulated.

However if you are in the business of purchasing one or more properties it’s a good idea to know a little of how this process works.

Valuer’s have 3 major area’s to deal with in the residential market. One is for stamp duty purposes of an individual, establishing the real value of a particular property for an individual, & thirdly checking property prices for an intended mortgagor eg lender who is going to hold the mortgage on a property.      

The result achieved from the valuer one would hope to be uniform & consistent across the boards regardless of who ordered the valuation. In reality the results are usually skewed to suit the purchaser of the valuation. It’s usual practice for a stamp duty valuation to be much less than a purchase valuation by a client.

The result which is of most concern to most consumers is the valuation ordered by a money lender as this figure can make or break the sale. Recently in NSW when the property market started going down & staying flatsome lender decided to sue a valuer as the property they were holding when put up for sale could not achieve the valuer’s stated price. If the rising market had continued the valuation wouldn’t of been an issue. So as a result valuer’s in this state ran to theirs caves for shelter & vowed never again to give a fair valuation, it can only be conservative to protect our ass, reputation & livelihood as their indemnity insurer’s would surely dish out wroth. So this added to the NSW investor tax to kill the property market in this state. We are now starting to see the inevitable kick back of dried up rental property stocks & soaring rental prices.
As a property consumer be aware of this fact & The Valuers Act 2003 requires a person to be registered before they may practise or advertise as a valuer. A corporation must not practise or advertise as a valuer unless at least one director or employee is a registered valuer. realise that property values are generally being marked down & this in turn limits the number of buyers as minimum deposits for purchase can’t be achieved [You are approved for a 90% loan on a 500k property, valuation said its $450k so that means you have to come up with an extra $45k to do the deal which most people don’t so the vendor goes begging & purchaser hits the pub for a few “sorrow comforts”].

If you are a Queenslander or West Australian keep praying that the NSW Gov. Will keep screwing up so that out of state money keeps flowing in.

So back to property valuer’s love them or hate them one thing for sure is that you are going to come across them & depending on mood of the market they can be optimistic or pessimistic & they will influence the way you do business. Just understand the game & it could save you alot of stress.

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