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'No underlying systemic issue' with valuations: ValEx

by Nick Bendel10 minute read

ValEx has defended itself against industry attacks and revealed that less than one per cent of valuations get altered.

Property valuations have been a hot topic since The Adviser reported last week that brokers had raised serious concerns about valuations.

The FBAA then said it would ask APRA to investigate how mortgage valuations are calculated.

CoreLogic RP Data said it handles about 1.4 million residential and commercial valuations per year through its ValEx and VMS platforms.


General manager of operations Michael Hooper said that gives CoreLogic RP Data "the most comprehensive, accurate and reliable data with which to properly inform this debate".

Mr Hooper said that 90 per cent of residential valuations come within 10 per cent of the sale price.

He also said that 69 per cent of residential valuations come within 10 per cent of the owner's estimated market value.

There is a one per cent pricing variation between different valuation firms when the assessed market value is compared to the owner's estimated market value, Mr Hooper also said.

"In other words, there are no significant variations between valuation firms," he said.

Mr Hooper said that only 2.4 per cent of valuations each month are disputed by brokers or lenders.

He added that of that 2.4 per cent, only 26 per cent are altered in value – or less than one per cent of the total monthly volume.

Mr Hooper acknowledged that there would always be valuations that don't meet the needs or interests of all stakeholders to support a loan application.

"However, based on the aggregated data set out above, it is clear that there is no underlying systemic issue," he said.

Mr Hooper also said it was important for people to understand what ValEx does and doesn't do.

ValEx is a platform that acts as a conduit for instructions to be sent to panel firms and reports to then be delivered to clients, Mr Hooper said.

"ValEx is not responsible for the content of either the client's instructions or the panel valuer's valuation reports," he said.

"ValEx does not undertake valuations, nor does it interfere with valuation outcome. ValEx is a workflow system that enables end-to-end management of the valuation process."

[Related: Valuers defend themselves against broker attacks]

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