Brokers need to stop disputing low valuations, as it will seldom lead to any change in the original assessment, industry valuation management firm ValEx has said.

Valuation Exchange general manager Michael Hooper has told Australian BrokerNews that while there may be a perception that valuers are being overly-conservative, their assessments are generally correct in the first instance. He said brokers and consumers need to accept the initial valuation of a property, regardless of whether they get the desired outcome.

"The honest truth is that brokers need to accept that valuation in the first instance. Generally speaking, valuation assessments in the vast majority of cases are correct, with only 1% or 2% of valuers actually changing the figure based on a dispute," Hooper said.

Hooper does not believe valuers are being overly conservative. He commented that low valuations are naturally reflecting a stagnant or even declining market.

"I don't think it's a case of conservatism. If market conditions are stagnant or declining, then valuers will reflect this in their assessments based on actual sales that have occurred. I also think that given 70% of all lending relates to refinances, these customers have unrealistic expectations of the value of their properties," he remarked.

These unrealistic expectations, Hooper said, can also extend to brokers.

"With brokers trying to consolidate debt and refinance, if the property value is stagnant, or has in fact declined, they can't do business and it may mean the refinance can't happen. Therefore, the customer stays where they are. No money for the broker," Hooper said.

While Hooper said most lenders have dispute processes to challenge valuations, he dissuaded brokers from pursuing this channel.

"I wouldn't promote this, as valuers get tired of getting disputes because the customer or broker is not happy with the valuation," he commented.