Valuation fee

mathie

A friend of mine just purchased a place and was charged for a property valuation.
He knows for a fact that the valuers didn't even enter the property.
They just stated that the house was valued at what he agreed to pay for it.

Is site valuation just a scam?

Minier81

All I know is that a bank won't give you a mortgage without one. Its supposed to be an independent opinion of what the property is worth. I don't really see hwo it would be a scam its the banks that insist on it and a valuer who gets paid, not the bank.

Doop

There is such a thing as a 'drive by valuation' which is cheaper than a regular valuation and doesn't involve the valuer entering the property. If its in an estate its assumed to be eg a 3 bed semi, in reasonable condition. Depends if the bank asked for / willing to accept this type of valuation. (however the valuer is still required to go and photograph the outside of the property)

If it was a full normal valuation, then the valuer should have entered the property. If he didnt, then all he's done is put his neck
on the line by signing the valuation form, which says he has inspected the property.

Either way the bank would have required the valuation to be done, so its no skin off your friends nose. The bank wouldn't proceed without it.

mathie

Thanks guys.

He was actually charged 135 for a drive by valuation.
He's wondering if this indeed did happen or if they anything at all.
Surely thats a very high price for them to write a letter to say 'its worth what you're bidding'.

Is 135 more like the price of a walk-in valuation?

Thanks for the help

Patrickof

Yeah, 130 is the price of a full "walk in" valuation.

65 (or 75 if more than 10 miles) is the normal fee for a drive by.

Doop

As above, that price would normally be for a full valuation. Still if he knew the price before getting the valuation done, then its kinda a case of buyer beware.

Just fyi, you're not tied into any particular valuer, as in this case he could of gone elsewhere for the valuation. Each bank has a number of valuers on their 'panel' which can carry out valuations on their behalf. If you are unhappy with a valuer ask your bank for another valuer on their panel.

Also its not so much a case of the valuer saying 'its worth what you're bidding' more a case of saying to the bank yes this the market value of this property therefore reasonable to give someone a mortgage of 'x' amount on it. I've only come across one property where I didnt agree with the price a buyer had agreed to pay. (towards the end of the boom time) Needless to say all hell broke loose. End result was we saved the purchaser approx 80k on the house. So mortgage valuations do have there uses!