Experience with valuers

irishguy

What have been peoples experiences with valuers at the moment? I have gone sale agreed on a house at C. -50% of what it would have got in the peak, in a nice part of Dublin close to town. I really need the valuation to come in at the same price or higher. Also does the valuer tell you a price there and then when its valued? and are they aware of the sale/asking price?

Doop

I take it, its the house your buying that is being valued for mortgage purposes, i use to work as a valuer and in this case the valuation will be the price you've agreed to pay (as long as the valuer agrees with what your paying).

The valuer (generally) wont tell you there and then... cos they'll want to do some research back in the office, just ask when they expect to have it done, and ring them. They'll get the asking price either from yourself, or the estate agent selling the property.

irishguy

Doop wrote: »

I take it, its the house your buying that is being valued for mortgage purposes, i use to work as a valuer and in this case the valuation will be the price you've agreed to pay (as long as the valuer agrees with what your paying).

The valuer (generally) wont tell you there and then... cos they'll want to do some research back in the office, just ask when they expect to have it done, and ring them. They'll get the asking price either from yourself, or the estate agent selling the property.

I thought they would have an average for a house of that type in that area. Then discount it by X percent for the amount they think houses have/will go down. Also would the bank not be putting pressure on the valuer to give a lower value to the house to protect themselves? Or am I just being paranoid

eman66

Valuer put 320k on a house I bought for 240k. Means my insurance is a good bit more expensive.

irishguy

eman66 wrote: »

Valuer put 320k on a house I bought for 240k. Means my insurance is a good bit more expensive.

Hows that? Would you not be insuring it for the cost of rebuild? Also your loan to value ratio should be way down now, so you should be able to get a better rate.

Doop

irishguy wrote: »

I thought they would have an average for a house of that type in that area. Then discount it by X percent for the amount they think houses have/will go down. Also would the bank not be putting pressure on the valuer to give a lower value to the house to protect themselves? Or am I just being paranoid

They'll have an idea of the value before doing the valuation, they dont really work with set prices less what the market has done in the last year, They'll be aware of what houses are selling for right now, They'll check with other estate agents to see how others are doing with houses in the area. Banks dont really put pressure on valuers, they do randomly check valuations themselves, ive had calls from banks asking to justify ceartin valuations, but as long as they've done their job properly its not a problem.

Aslong as your not paying way over the odds, there wont be a problem at all. If your arranging it yourself, the bank will have a number of valuers who are on their 'panel', best bet is someone local in the area, usually cost around 140euro.

fyi, valuations for sale agreed houses are generally the most straight forward valuations, no need to be paranoid

eman66

irishguy wrote: »

Hows that? Would you not be insuring it for the cost of rebuild?

The lender insisted my insurance match the valuer's figure.

Patrickof

There's no reason the insurance value should match the market value. In the worst case the house is completly destroyed, but you won't have to buy the site again. However, do consider site clearance may be an issue.

There are standard SCS tables for house insurance values, around €150 per sqft is the most recent for Dublin 3 beds, but thats probably a bit excessive at the moment (building costs have fallen).

D3PO

eman66 wrote: »

Valuer put 320k on a house I bought for 240k. Means my insurance is a good bit more expensive.

That shouldnt be possible, you pay insurance on the rebuild cost not the market value. Rebuild cost is worked off the square footage.

D3PO

eman66 wrote: »

The lender insisted my insurance match the valuer's figure.

Even if the lender did this you coudl call the insurance company and have your cover match the true rebuild cost now that drawdown has been made.

The lender has no authority over telling you what you have to have your house insured for. :eek:

eman66

D3PO wrote: »

Thats not possible, you pay insurance on the rebuild cost not the market value. Rebuil cost is worked off the square footage.

The lender, AIB, made insuring the house for the valuer's figure a condition of the loan. The policy is bought and paid for now. I suppose at renewal I could reduce it to the rebuild cost. How would I get this figure, ask a builder?

Edit: Just looking as the SCS website now.

D3PO

eman66 wrote: »

The lender, AIB, made insuring the house for the valuer's figure a condition of the loan. The policy is bought and paid for now. I suppose at renewal I could reduce it to the rebuild cost. How would I get this figure, ask a builder?

thats strange Im with AIB for my mortgage and they never asked for this. (Drawdown was 4 1/2 years ago)

in terms of rebuild cost there are scs tables that tell you what it should be to rebuild per sq ft. http://www.scs.ie/publications/digital_publications the 2009 report is available from this link

Or alternatively some house insurers like Allianz will work it out for you and as Im insured with them I can also confirm there rebuild costs are index linked so they will automatically change the valuation every time you need to renew so you dont have to keep worrying about the rebuild cost

D3PO

so take the average 3 bed semi d in dublin. its rebuild cost would be approx 185k so you can imagine if this is what you had for example the different in your premium that your forking out !!

I could understand for your life assurance policy that the bank would look for you to put the valuers valuation on the policy maybe but for your insurance I just dont understand it.