Valuation system stretched to breaking point

“The valuers are getting squeezed so much they are unable to provide the service they’d probably like to,” Mr Lamb said.

“There’s a lack of numbers of valuers in the industry… meanwhile, some valuers in Perth have had a 25 per cent surge in business over the past 12 months. While they can’t keep up it’s affecting the entire industry.”

Just last week, director of sales at Loan Market Mark De Martino was emphasising the importance of the broker-valuer relationship.

“A pre-existing relationship with a broker can be invaluable if the valuation comes in below expectations. Without the pre-existing relationship, the broker isn't in a strong position to argue their case,” Mr De Martino told The Adviser.

But because of the increasing strain the valuation system is experiencing, Mr Lamb believes these relationships are almost impossible to maintain.

“Bringing in more valuers is not a priority at the moment for the sector,” he said, “and because valuations go through outsourced organisations like Valuation Exchange, we can’t get the details of the valuer in any case. It’s just a closed shop. If something comes in we’re not happy about, we can’t discuss it.

“Perth is a small place and I bump into valuers all the time, and they’ve told me that they want contact with brokers to find out information about the property and they want to build the relationship too. But the outsourcing companies won’t allow that to happen.”

However, the solution isn’t as simple as just hiring more valuers, according to Mr Lamb.

“Valuers have to do a university degree, but after four years of study they’re getting into a tough, thankless and demanding job. I think banks need to pay them more, but that will only happen if banks start charging for valuations, again.”