Valuation

SeanoChuinn

Evening all.

We are mid mortgage application with provisional approval already granted and are feeling very positive about the situation. So far, so good.

Now, today I received a call from our valuer appointed by the bank and I was a little perplexed by the conversation. He was unable to read the house plans, unable to discern the layout of the house, how many bedrooms were in it, he could not tell the elevation by the diagrams, how many stories etc. the list goes on.

We are also trying to build a passive house and have employed a passive builder so costs are a little higher than normal. When this was mentioned to him he had no idea what a passive house was. He then proceed to make comments about how "herself must have shocking expensive taste if your build cost per square meter is this..." Again the list goes on.

He then tells me that there is no way he'll be able to value the property for the amount we are looking for in the bank for our mortgage. He's told me he will call me on Monday to disclose the value before submitting. I was shocked!

So I'm wondering can I instruct him to stop all proceedings and not submit anything to the bank???
I'm also wondering is it possible for us to instruct the bank that we want a different valuer?
I'm assuming he's beholden to our wishes regarding this as we are really anxious to get the bank to assign a new valuer to our application.

I know that people will always assign more value to something they own than maybe its worth, but I don't believe this is the case and I don't believe we're being unreasonable. I don't know what the value is going to be, but I feel like the house value + site value will more than cover the amount we are looking for, and its not a huge mortgage by any means.

We just want someone who can at least read house plans and also can understand the differences in costing and value for a passive house in comparisons to a regular build house. We fear our application may hinge on this guy simply not knowing what he is doing.

Any advice would be greatly appreciated.

Thanks everyone.

Gumbo

Who has engaged the valued?
You or the bank?

It's true that building a passive house can be more expensive than a traditional build and I understand what the va,her has to value it lower as it's what the bank will recoup if you run away as such.

SeanoChuinn

The bank initiated the process. We've no issue what so ever with them asking for it, I completely understand the idea behind it. And think its good way to cover their own risk. I just want it done correctly. The value of our site which we own outright alone is 1/3 of the value of the loan we are looking for so as I've had the site valued by another auctioneer. I know we'll be fine, IF its done right. And this is where my problem arises.

anoble66

The valuers sent out by the banks (in my experience), fairly heavily undervalue both land and the proposed dwelling. The valuation is usually what the valuer believes the bank could recoup on the finished house if they were forced to sell it. It's not necessarily fair market value. This was my experience anyway and in the end the bank still agreed to the mortgage. I would not hold my breath on the bank taking any consideration to the fact your building to passive standards, I would say the valuation criteria tends to be fairly basic, eg, how many beds, house type, sq/ft, plot size and house price data for your area.

efbeef

I know when we were getting our mortgage (AIB) we were given a list of bank approved valuers and we chose who we wanted (the local lad who knew the story was chosen I can tell ya!). Is this an option for you? Perhaps ask the bank.

SeanoChuinn

We are applying through same bank. The process may have changed since you applied though efbeef. We had to call a bank 1850 number and they assigned the valuer from their list of approved valuers. We had no choice in who was picked. But I'm hoping with his current form I can convince the bank we need someone else to do it.

My fear is he'll come in below the mortgage amount simply because he doesn't know what he's doing, rather than its actual value is below the loan amount. If that was the case - no problem, but he just doesn't know what he's doing.

efbeef

WOW we only just drew down our 1st mortgage installment 3 months ago cant believe the process has changed so much so quickly. I hope you get it sorted Seanochuinn.

SeanoChuinn

Ok seems to have changed pretty drastically so Ef. AIB has actually been great, the lady we are dealing with responds quickly and we have had no issues at all with them, the only issue has arisen now that we are dealing with the valuer.

tradesman

The valuer will carry on & submit his valuation to the bank so he can get paid! He's been asked to do a job & he will do it You cannot stop him. I would suggest you put your concerns to the bank with regard to him not being up to the job & see what they say. If it goes against you then get a valuation from another company & submit to the bank