Property Valuation

[Anonymous]

The bank has confirmed our valuation for the property we are purchasing at €75000 above the purchase price.
Is this normal or are we buying at a good price?

[Anonymous]

From our experience valuations don’t seem to be very accurate at all. Our place was valued at much higher than what someone would actually pay for it. I suppose as long as it over-values the property it’s ok but I would be careful not to borrow more because of this…

[Anonymous]

The main thing valuations go on is m2 built and location. Views, open terraces, access, fittings etc. seem to have little bearing on the figure.

[Anonymous]

The bank is happy to over value the property as this allows them to lend more money and make a larger profit. The value of any property is the price someone is willing to pay on the open market.

[marios]

Or a larger default if the person cannot pay.

[Anonymous]

The question I was really asking was it is usual for valuation to be €75000 higher than the market price!
I do not intend to borrow more funds, but this amount seems excessive as it is 40% higher than the purchase price!

[Anonymous]

Yes it does happen a fair bit and may depend on the lender you’re using, but generally if it does then you have a good purchase and/or the bank see you as a good risk.

My place came in at over €200k more than I was paying so I took another €50k on top to do the place up. A cheap loan.

[Anonymous]

Hi my property was valued at 166.000 euros by bankinter 2 years after i bought off plan for 156,000.

bankinter said that the valuation was always 20% below market value.

now that i want a top up of my mortgage as the property is now worth 220,000 euros as several neighbours have sold theirs for 220,000 can anyone recommend a bank that will value the property at 220,000 as i want to release as much equity as possible to start a business in spain and pay a deposit on another property in Valencia region

thanks

Nick

[Anonymous]

Hi my property was valued at 166.000 euros by bankinter 2 years after i bought off plan for 156,000.

bankinter said that the valuation was always 20% below market value.

now that i want a top up of my mortgage as the property is now worth 220,000 euros as several neighbours have sold theirs for 220,000 can anyone recommend a bank that will value the property at 220,000 as i want to release as much equity as possible to start a business in spain and pay a deposit on another property in Valencia region

thanks

Nick

[Anonymous]

Bank valuations can be dependent upon both the bank and the valuer. I have seen instances where the valuer has valued the property low and the bank merely sent out another valuer who they knew would value it high – hardly responsible lending is it.

When I bought my ifrst property in Spain I was asked how much of a mortgage I needed to complete the property. When I told them how much they sent out a vlauer with instructions to value it at least 15M ptas (this was nearly 5 years ago) even though I was only paying 10M for it.

The valuers tend to take the Sq Meterage of the property into account which bears little relation to the market value, unless it is land then it has more relevance.

As for the original question my second property valued at €295,000 whereas I paid €207,000 for it. So yes it it normal for banks to overvalue by a lot. There was a time when tnment came in that uations had to go to d because the government were concerned about the high level of mortgages and prices of property, But that seems ot have stopped now.

Regards

Vince

[Anonymous]

Bank valuations can be dependent upon both the bank and the valuer. I have seen instances where the valuer has valued the property low and the bank merely sent out another valuer who they knew would value it high – hardly responsible lending is it.

When I bought my ifrst property in Spain I was asked how much of a mortgage I needed to complete the property. When I told them how much they sent out a vlauer with instructions to value it at least 15M ptas (this was nearly 5 years ago) even though I was only paying 10M for it.

The valuers tend to take the Sq Meterage of the property into account which bears little relation to the market value, unless it is land then it has more relevance.

As for the original question my second property valued at €295,000 whereas I paid €207,000 for it. So yes it it normal for banks to overvalue by a lot. There was a time when tnment came in that uations had to go to d because the government were concerned about the high level of mortgages and prices of property, But that seems ot have stopped now.

Regards

Vince

[Author]

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