spicymchaggis Registered User
#1

I'm about to get a valuation on a property as part of the mortgage process.
Is the valuation looking to see if it's worth the sale agreed price or worth what the bank is lending?

We are first time buyers putting down 22% deposit so a large deposit is our own savings.
We went sale agreed 6% above asking price but definitely worth it as it had lots going for it compared to houses at similar prices in the area..

Sleepy Registered User
#2

Don't worry about it. The valuer will basically drive past the property to ensure it actually exists, look up the property price register for nearby properties / take a look at similar properties on Daft and rubber stamp the "valuation".

spicymchaggis Registered User
#3

Really???? They never enter the property?

catrionanic Registered User
#4

spicymchaggis said:
Really???? They never enter the property?


Sleepy was just being facetious. Yes, they will enter the property.

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pnecilcaser Registered User
#5

I had a valuation done by Baxter in 2012. I wasn't home at the time they came so they did NOT enter the property. I am pretty sure the guy didn't even get out of his car. But they still charged me €150 - it was a requirement for the mortgage though.

I recently looked at switching my mortgage and found two financial brokers who offered to pay for the valuation as part of the deal.

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kippy Registered User
#6

Main point of the "Valuation" as far as I can see is to verify the house actually exists!
There were numerous cases in the last "boom" where houses didn't actually exist or there were double mortgages taken out on the same asset.

Carlowgirl Registered User
#7

The valuer has to make sure that the house is worth what your paying for it. A house value is basically what people are willing to pay for it. Just went through this process and the valuer took it very seriously as they have to ensure that if the house is repossessed the bank will get their money back. It's more straight forward if a house is up for general sale. If it is being sold privately it is a little more complex as no one knows what it would fetch on the open market.

Carlowgirl Registered User
#8

Also they do not go into the structure etc. That is for the engineer. They value the house cosmetically

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Baby01032012 Registered User
#9

They don’t enter. It’s just to know house exists and is a 3 bed semi d or whatever you said it was. It’s completely different to surveyor who checks that all internals are to building regs condition any structural issues etc.

spicymchaggis Registered User
#10

So in short €150 for 5 mins on myhome and property register?

Baby01032012 Registered User
#11

Carlowgirl said:
It's more straight forward if a house is up for general sale. If it is being sold privately it is a little more complex as no one knows what it would fetch on the open market.


That makes no sense at all. Most houses are sold privately as opposed to auction or do you mean sold between connected parties such as families with no outside bidding.

PhoenixParker Registered User
#12

Ive had three valuations done in the last three years (adjusting mortgage rate) and the valuer came into the house and walked through every room each time. It takes about 15 mins and is very superficial.

I mentioned to him what we needed it to be each time and he came close or over. (3rd was a stretch as we were aiming to hit 60% ltv)

Its to check the house is worth more then the mortgage and establish the appropriate ltv bracker.

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Carlowgirl Registered User
#13

Baby01032012 said:
That makes no sense at all. Most houses are sold privately as opposed to auction or do you mean sold between connected parties such as families with no outside bidding.


I mean between families or direct sale I. E. Not on the market

Carlowgirl Registered User
#14

Baby01032012 said:
They don’t enter. It’s just to know house exists and is a 3 bed semi d or whatever you said it was. It’s completely different to surveyor who checks that all internals are to building regs condition any structural issues etc.


Don't know when that was but they do now and have to fill out a valuation report for the bank. If any important details is left out mortgage can't be drawn down until it is. It might be more strict now

awec Moderator
#15

kippy said:
Main point of the "Valuation" as far as I can see is to verify the house actually exists!
There were numerous cases in the last "boom" where houses didn't actually exist or there were double mortgages taken out on the same asset.

Main point of the valuation is to ensure that you aren't securing a 400,000 mortgage against an asset that's worth 200,000 at best.

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