APRA asked to investigate valuations

The development comes after The Adviser reported serious concerns about valuations and conducted a poll in which 52.7 per cent of brokers said valuations are usually too low.

FBAA chief executive Peter White said it was not good enough that brokers report huge variations in valuations for the same property, sometimes by hundreds of thousands of dollars.

"Valuations should reflect the true value of a property and incorrect valuations can in some cases prevent buyers from being able to purchase the home they want," he said.

Mr White said lenders are increasingly using valuations based on computer-generated market averages, but these do not take into consideration the nature of the individual property.

"In the majority of cases, no one is physically visiting the property any more, so valuations are being provided site-unseen," he said.

"Every property is different in so many ways, which is why individual assessment will always be more accurate than a formula."

Mr White said APRA needs to investigate Valex, as well as the arrangements between valuers and banks and how the data is calculated.

"It's time to review the model used for valuation assessments and allow a more effective dispute procedure," he said.

CoreLogic RP Data, which runs the Valex platform, declined to comment.

[Related: Brokers urged to improve their valuation skills]