Valuation Accuracy of Mortgage providers

Mark_Scott

Hello There
I have recently applied for a fixed rate mortgage with First Direct.
65% LTV for a loan of £80K
Having used Zoopla and local estate agents selling prices to guage an accurate value of my property I plumped for £125K.

What is the likelyhood of the Mortgage providers valuation being close to my estimate and is there a known market variance between Commercial and Banking Valuations.

I look forward to your help, while waiting for the Bank to respond...........:(

Thrugelmir

Mark_Scott wrote: »

and is there a known market variance between Commercial and Banking Valuations.

A property is only worth what somebody will pay for it.

Anything else is an educated guess.

billybear1

I think, given that very A level supply and demand version of how equilibrium and therefor price is determined in the open market, what the original poster was alluding to was...

Are the estimates on what a house is worth, using previously sold house prices as an indicator and current market trends, would the valuation given by estate agents, websites and valuers be consistent, or do valuers give a conservative estimation?

IMO, which to be honest is very limited, the mortgage company tell the valuer what the buying price is and ask them to say yes or no, even if the house is worth vastly more. It's not really a valuation, I think a much more accurate term for it would be equity appraisal.

handytips

Its worth what the surveyor values the property at and not some Estate Agent. Unfortunately it is all to common to expect what we call a downvaluation. Never think along the lines 'My house is better than the others in the street' as it makes no difference. have a look at the lowest sale price in you street, thats if there has been a recent sale and this will probably turn out to be your valuation.

Typhoon2000

Thrugelmir wrote: »

A property is only worth what somebody will pay for it.

Anything else is an educated guess.

Not always, often valuations come below what the buyer has agreed to buy the property for.

Thrugelmir

Typhoon2000 wrote: »

Not always, often valuations come below what the buyer has agreed to buy the property for.

Then the buyer is happy to pay a premium to acquire that particular property. Which is different to a market valuation.