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Jessica Darnbrough
The flat property market is proving a concern for brokers, with many valuations falling short and blowing out settlement times.
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Several brokers have complained in recent weeks about the discrepancy in valuations, which is ultimately negatively impacting the relationship brokers have with their clients.
W Financial’s Michelle Coleman is one broker who has found valuations to be a big hurdle of late.
“There can be such a variance in valuations from one lender to another – often it can be 20 to 30 per cent difference in the same property at the same time,” she told The Adviser.
“That is definitely the biggest hurdle for us at the moment, especially if you have to deal with a lender that does not offer upfront valuations as part of its broker offering.
“So, in all cases we try to do valuations upfront, however, it is not always possible.”
It is for this reason that many lenders are starting to offer upfront valuations to all of its broker partners.
Earlier this year, National Australia Bank removed its broker segmentation policy, giving all of its broker partners access to upfront valuations as well as other benefits that were usually reserved for four star brokers.
NAB’s decision to remove its segmentation policy helped the lender improve its popularity amongst brokers, with the lender achieving first place in The Adviser’s Third Party Bank Ranking – Major Lenders.
