Should a valuer for a mortgage be a practicing estate agent/valuer?

gigino

Just wondering if the person who values a property on behalf of a financial institution ( when evaluating if the property is worth the mortgage etc) should be a practicing valuer / estate agent? What if he / she was just an engineering technician practicing from his / her home dwelling ? Does that ever happen / would it be acceptable?
Thanks in advance for any replies.

MagicSean

Acceptable to who?

killers1

gigino wrote: »

Just wondering if the person who values a property on behalf of a financial institution ( when evaluating if the property is worth the mortgage etc) should be a practicing valuer / estate agent? What if he / she was just an engineering technician practicing from his / her home dwelling ? Does that ever happen / would it be acceptable?
Thanks in advance for any replies.

Valuation reports for mortgage purposes are only accepted by lenders where the valuation has been carried out by one of their panel of approved valuers. To get on the banks panel you would need to satisfy the banks criteria in terms of qualifications, current employment, indemnity insurance etc....

nuac

Many people, in fact nearly everybody claims to be an expert on the value of property.

I believe valuations from professionals engaged in the sale and purchse of a range of property in that particular area would be the most reliable

killers1

gigino wrote: »

Just wondering if the person who values a property on behalf of a financial institution ( when evaluating if the property is worth the mortgage etc) should be a practicing valuer

It's not that they should be they have to be....

gigino

killers1 wrote: »

Valuation reports for mortgage purposes are only accepted by lenders where the valuation has been carried out by one of their panel of approved valuers.

I understand that.

killers1 wrote: »

To get on the banks panel you would need to satisfy the banks criteria in terms of qualifications, current employment, indemnity insurance etc....

Suppose the "valuer" in question just had a civil engineering technician certificate and spent most of his working life working outside the property industry. He does occassionally , and has done over the years drawings for the odd house extension, drawings for the odd new one off house for someone locally etc. He practices from a room in his home in a housing estate, without his name or any advertising. Should someone like him be an approved valuer for a financial institution, when valuations from professionals engaged in the sale and purchase of a range of property in that particular area would be more reliable?

killers1

gigino wrote: »

I understand that.



Suppose the "valuer" in question just had a civil engineering technician certificate and spent most of his working life working outside the property industry. He does occassionally , and has done over the years drawings for the odd house extension, drawings for the odd new one off house for someone locally etc. He practices from a room in his home in a housing estate, without his name or any advertising. Should someone like him be an approved valuer for a financial institution, when valuations from professionals engaged in the sale and purchase of a range of property in that particular area would be more reliable?

I doubt a civil engineering technician's cert will qualify someone to be an approved bank valuer. Generally they need to be members of the Society of Chartered Surveyors Ireland & most are also members of RICS. The fact that he works from home isn't an issue but I doubt whether he has the relevant qualification or indemnity insurance. To be honest I don't really get the point you are trying to make or question you want answered? At the end of the day valuations are subjective & are determined by size & spec of a property, comparable properties in the same area that have recently sold... Two fully qualified valuers may come to different opinions in relation to the value of the same property and there is no exact formula to work it out..

gigino

killers1 wrote: »

Generally they need to be members of the Society of Chartered Surveyors Ireland.

ok, thanks for that. You think if they are not members of that they should not be an approved valuer. I'll check it out

krd

nuac wrote: »

Many people, in fact nearly everybody claims to be an expert on the value of property.

I believe valuations from professionals engaged in the sale and purchse of a range of property in that particular area would be the most reliable

I used to do rough valuations on UK property as a part of a job I had.

I would look in the land registry - see neighbouring houses, and what they had sold for, then get an average, and calculate the percentage increase or decrease in the area. My valuations would pretty much be on the button for what the professionals would give - rarely there would be some structural defect which would throw it out, but most of the time I would be spot on.

In July, we're supposed to be getting public access to the land registry (prices etc). Up to now, only the banks, solicitors, and estate agents have had access to these records. And this is one reason we had the property boom and crash.

Estate agents have been absurdly misleading. Pulling stunts with their window displays to give impressions they'd sold houses for mad money, when in fact no sale had taken place, and they were trying to dupe the market.

nuac

I agree that many estate agents have been trying to defy gravity in recent years i.e. trying to keep prices up in cases where they should have been reduced.

The entire upwards only rent review is a scandal - putting a lot of people out of work in retail and services.

If there is a constitutional problem, it would be worth while having a referendum - rather more important than reducing the presidential term to 5 years or bringing the voting age down to 17.

gigino

nuac wrote: »

I believe valuations from professionals engaged in the sale and purchse of a range of property in that particular area would be the most reliable

I would have thought so too, rather than from a little known "valuer" for a financial institution operating from a room in his home in a housing estate. Back in the year of the celtic tiger, there was a huge difference between his valuation and that from a reputable firm ( which was a much lower valuation ), thats why I ask.

Carawaystick

reputable property valuation firms in Ireland are like credit rating agencies.....

gigino

Carawaystick wrote: »

reputable property valuation firms in Ireland are like credit rating agencies.....

I would say international credit rating agencies like Moodys are as different as night is to day , compared to a maverick "valuer" for a financial institution operating from a room in his home in a housing estate and whose valuation is more than double another valuation the same year / other comparables in the area.