Many borrowers believe bank’s will value their Homes & Investment Properties lower than the actual current market value.
Many also believe banks instruct Valuers to base their valuation amount on a “Fire Sale” scenario.
This is not actually the case as the Valuers are required by the banks to provide evidence of actual sales which have occurred within the previous 3 – 6 month period of similar properties within the suburb /proximity of the property(s) being valued.
If there is a difference between the final valuation amount & the comparative sales results, the Bank will contact the Valuer & request a “Please Explain”.
Please note that the “Sales Results” are based on actual sales that have been finalised rather than the “Asking Price” of properties yet to be sold. This is understandable as the final negotiated sales price is often lower (or higher on occasions) than the original asking price.
