At the beginning of October Quotation Value NZ made an offer like they did back in 2006.
By going to their site here you can check QV’s House Value Tracker for free.
When I tried it, I found you could check on up to 5 properties to see what QV believes their value is worth.
They mentioned in an earlier email that this freebie expires on 25th October 09 so you’ve still got a few days yet.
I heard this week from a lending facilitator……..some banks are offering free valuations as another tool in their “persuader packs.”
There has been much debate, here and elsewhere over the accuracy of these figures in relation to a properties current market price.
I am hearing that QV’s figures are considerably below what the properties are selling for on the current market.
In fact, testing a some Sold properties in your region may highlight the differences.
So I decided to test the 3 properties that I’ve sold this week.
Property 1 Stoke – Sold for 8% above QV’s figure
Property 2 Stoke – Sold for 0.5% difference to QV’s figure
Property 3 Richmond – Sold for 9% above QV’s figure
Mixed results I’d say.
My concern is if they are using this figure as their LVR (Loan to Value Ratio) you might have problems with securing a satisfactory loan, that is a sufficient amount to complete your purchase.
This is certainly not too say that as a final tick to the loan process, a lender may require a Registered Valuation, however what I’m talking about here is the initial application processing stage.
As long as its applied across the board that would seem fair, but it does make one wonder whether an element of selective screening could be happening?
Any finance industry folk care to set me straight on this?