Hi, there
I recently had the same thing happen to me. The creditor's valuation came at $30K lower than what I paid for it (( have already paid a non-redeemable deposti). It's caused me a headache with the creditor as I had to reduce the amount of money I was borrowing to avoid the payment of mortgage insurance.

However, I am firmly convinced the valuers were being too conservative (is this a ploy to try and keep the property market prices under control) and I paid very close to what it is actually worth.

I agree that you need to do a comparison with other similar type properties in same suburb. I searched for five months before I found this property and it is in my opinion certainly worth it!
Carol