Property Valuation

spicymchaggis

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

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

Really???? They never enter the property?

catrionanic

spicymchaggis wrote: »

Really???? They never enter the property?

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

pnecilcaser

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.

kippy

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

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

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

Baby01032012

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

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

Baby01032012

Carlowgirl wrote: »

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

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.

Carlowgirl

Baby01032012 wrote: »

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

Baby01032012 wrote: »

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

kippy wrote: »

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.

kippy

awec wrote: »

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.

Its a secondary aspect but not the main reason......surprisingly.

Sleepy

catrionanic wrote: »

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

Nope, not being facetious. Still annoyed I had to pay €150 for the "valuation" when we purchased our home two years ago. They never entered the property and, for all I know, simply checked it existed on Google Maps, took a look at the PPR and signed a form for the bank. It's very handy money for those doing it!

catrionanic

Sleepy wrote: »

Nope, not being facetious. Still annoyed I had to pay €150 for the "valuation" when we purchased our home two years ago. They never entered the property and, for all I know, simply checked it existed on Google Maps, took a look at the PPR and signed a form for the bank. It's very handy money for those doing it!

My god, I'm shocked. What an absolute joke. We had our own house valued by our buyers a few weeks ago and the valuer came into the house. We are paying for a valuation on our new house within the next few weeks, and I will be seriously annoyed if they don't even enter the property!

Fol20

catrionanic wrote: »

My god, I'm shocked. What an absolute joke. We had our own house valued by our buyers a few weeks ago and the valuer came into the house. We are paying for a valuation on our new house within the next few weeks, and I will be seriously annoyed if they don't even enter the property!

Its just a cog in the wheel to get your place. It might have just been a drive by valuation if its a refiance

spicymchaggis

I'm getting the valuation done tomorrow morning and they had to organise a time with sellers estate agent as they are entering the property.

godtabh

We sold our house last year. Valuer for the buyer came out. Reported back that the value was substantially lower that the agreed price to the tune of €100k. Bank made them pay for another valuation and they paid for a third. Was fine in the end but complicated the sale!

Got one done about 2 years ago. Came into the house, wandered around. I was buying so pointed out any and every flaw I could. He asked what I wanted it valued at, and I told him (but kept it reasonable).

He came back with the valuation I asked for. Valuation itself was free, but had the option of costing me €100 to get it in writing (which was fine with me). Saved me about €15k and was a nice chap to deal with, so was worth it.

Lenny

PhoenixParker wrote: »

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.

Did you get your interest rate lowered by doing this for your current bank? Who is your provider? I'd like to try this with aib but they seem set on not charging the ltv rate

PhoenixParker

Lenny wrote: »

Did you get your interest rate lowered by doing this for your current bank? Who is your provider? I'd like to try this with aib but they seem set on not charging the ltv rate

Yes. KBC. KBC have a specific process for it.
1 page and 2 phonecalls.

spicymchaggis

Got mine done Thursday and report received yesterday. They entered the property, took photo and 6 page report. Even mentions compliance certificates for work that is done.

astrofool

You're paying for their credentials and track record in valuing houses such that the banks will trust that valuation (and leave themselves open for professional misconduct if they sign off on a valuation that is patently false). Given the cars they generally drive, I doubt they're rolling in it.