% difference between estate agent and lender valuations?

curlylol

Hi! 

Is there a typical % difference between what an estate agent values your house at to what the valuers that lenders instruct value it at?
many thanks

kingstreet

No. A selling agent's marketing appraisal and a chartered surveyor's valuation are completely unrelated.

dunstonh

Estate agents will often put the property on the market at upto 15% over the level that they expect the vendor to accept.  So, when the buyer comes in with an offer under that price, the is room to accept it.

Valuers work on different criteria for mortgage and will often be less than the estate agent price unless knocked down.   In periods of financial crisis, valuers are often instructed by the lender to be more pessimistic on values.  Such, as being told to price it on the basis of a sale within 90 days.      During a strong period of growth in the economy and rising house prices, the valuers are less likely to be on a pessimistic instruction.

As such, there is no typical difference but there is often a difference.