Valuation Risk Alerts (VRA)

Valuation Risk Alerts are required by certain clients.

Each risk item on a report can either be checked or unchecked, and if checked a comment can be entered.

All risks must be answered either yes or no before the report will be delivered.

If unchecked we require a Rating of "1-Low", if flagged as a risk send "5-High".

Flagged as a risk:

<RiskRating Rating="5-High" RatingType="Other">
<Identifier Type="VPMAssigned" UniqueID=”HighRiskOrNonResiPropType” Description="High Risk Security">
<Comment>The valuer notes that subject property is outside of CBA Guidelines </Comment>
</Identifer>
</RiskRating>

Not flagged as a risk:

<RiskRating Rating="1-Low" RatingType="Other">
<Identifier Type="VPMAssigned" UniqueID=”HighRiskOrNonResiPropType” Description="High Risk Security">
<Comment />
</Identifer>
</RiskRating>

 

As of Novmeber 25th 2012, ValEx has utilised the following list of industry-wide Valuation Risk Alerts as per the implementation of the new Standing Instructions (please note that the first 3 of these, are existing CBA VRA’s):

UniqueID Description Comment
HighRiskOrNonResiPropType Does the subject property comprise a higher risk or a non residential property type? For example: Retirement villages, aged care units, boarding houses/hostels, commercial property, three or more dwellings on one title, student accommodation, serviced apartment Yes, 5+ words
ExistingImprovements Are the existing improvements on the property incomplete or under construction? Yes, 5+ words
ExtendedSellingPeriod Are there any adverse marketability issues that would require an extended selling period of more than 6 months? Yes, 5+ words
HeritageLocationEnvironmental Is the Subject Property critically affected by any Heritage, Location or Environmental Issues? Yes, 5+ words

Report Integrity Questions

Also displayed within ValEx are 'report integrity' questions. These are designed as prompts to the valuer to ensure they have covered off areas of concern.

Most report integrity questions have an additional option of "0-NotKnown":

<RiskRating Rating="0-NotKnown" RatingType="Other">
<Identifier Type="VPMAssigned" UniqueID=”AgentIntervention” Description="Is the sale without intervention of a real estate agent">
<Comment />
</Identifer>

</RiskRating> 

First sale in a recent construction?
UniqueID Description Comment
Completed24Months Is the Subject Property situated in a Unit/Townhouse Complex that was completed within the last 24 months? No
FirstSale Is this the first sale of the subject property? No
Under contract

Where a property is under contract (valuer confirms contract price and date), and the valuer has sighted the contract. XPath: //RecentSale[@IsContract='Yes'] and //ResponseSupportingDoc[@DocType="Contract" and @DocAttached="No"] 

No Contract, Construction Loan

Where a property is not under contract, but for a transaction of Construction Loan. XPath: //RecentSale[@IsContract='No'] and //RealEstate[@Construction="Yes"] report_integ2

UniqueID Description Comment
TenderPrice Is the Tender Price considered reasonable? Automatic
ProgressPaymentSchedule Is the Progress Payment Schedule considered to be inline with Industry Standard? Automatic

Comments

Manual - encourage the valuer to make comment in their additional comments. Automatic - ValEx inserts a pre-defined clause. Yes/No; 5+ words - When answered, a comment by the valuer of 5 or more words is required. Valuation Exchange will render these comments in the additional comments section of a PDF. 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Commonwealth Bank of Australia Risk Alerts

The CBA currently have the following checks required for Residential Short Forms:

  • Are there any adverse marketability issues, that would require an extended selling period of more than 6 months?
  • Does the subject property comprise a higher risk or a non residential property type? For example: Retirement villages, aged care units, boarding houses/hostels, commercial property, three or more dwellings on one title, student accommodation, serviced apartments, development sites, non residential use, etc.
  • Are the existing improvements on the property incomplete or under construction?

Estimated selling period vs ExtendedSellingPeriod

For the question:
"Are there any adverse marketability issues, that would require an extended selling period of more than 6 months?"

Implementors are encouraged to map the comments of Estimated Selling Period into a positive answer and corresponding comment to this market risk question.

Note

For report integrity, originally "Is the property under contract" was implemented as distinct from "Recent Sale, under contract?".

This part of report integrity was to correct the original valuation request information; rather than to correct it in the valuation report itself.

Within the user interface, we've left the distinction for the moment - and will be merging the two in the near future.

For LIXI implementors, use of //RecentSale[@IsContract='Yes'] will populate both.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.