Hey guys my dad has an apartment in the city and his apartment is worth around $550,000. Many apartments with the same floor plan have been sold for about around $550 – $560K within the last year and one recently sold below his level last week for $560k. Most real estate agents have valued it around that mark, but when he got a 2 different bank valuations they valued it to be $520k mark. It is a great apartment, the location is great there isn’t any vacant land nearby for new developments and the view is stable.
Which valuation is more accurate?-
This topic was modified 10 years, 4 months ago by
ronnie01.
A valuation is carried out based on instructions. When a bank does a valuation they will often request that a valuation is done on a conservative basis. In other words if the apartment or property had to be sold what would be the worst case scenario. The bank remember is wanting to look at the valuation based on there risk. I know that in some cities in Australia there are a lot of apartments coming out of the ground so the banks are lowering valuations. The valuation does not necessary reflect the market value .
Why was your dad wanting a sworn valuation? If it was for finance then that would explain it.Nigel Kibel | Property Know How
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Hi Ronnie
Banks use third party valuers who are independent from the bank. If two valuers have come back with the same result – that’s a strong indication that the $520k is probably about right.
Usually valuations for refinancing are on the conservative side – if it was a valuation for a purchase, it would prob come back at the purchase price.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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This topic was modified 10 years, 4 months ago by
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