Prepare valuation queries with care

19 July 2010

There are two types of mortgage valuation - one where the valuer confirms the estimated figure and one where it is wrong.

Human nature is such that hope often prevails over reality and frustration can ensue if valuers don’t take the time to explain the logic and context of the opinions they have provided.

And therein lies the challenge. Typically, valuers are appointed by lenders to report on a property’s mortgageability.

This bilateral relationship is not always as clear as it could be and I sympathise with developers, brokers and applicants who are told that valuers cannot discuss particular cases with them.

This is not usually due to a lack of willingness to engage but rather a consequence of contractual arrangements with the lender.

That said, most lenders now have processes in place by which queries and challenges can be raised and forwarded to valuers for comment. For best results, a query should be outlined and supporting evidence provided at the earliest opportunity to facilitate a case review.

In my experience, credible arguments are given due attention while unsurprisingly one-liners such as ’the valuer is wrong’ are more difficult to resolve.

So the good news is that review mechanisms are there to be used but remember, it’s worth investing in some preparatory work to check a query before it is submitted if you want an early and productive response.

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