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Thursday, November 02, 2017

Down-valuations wrecking mortgage deals

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1 comment:

Estateman13 said...

There is no such thing as a down valuation! The situation occurs where an owner has inflated ideas of the value of the property or a buyer is paying too much.
Valuers simply look at confirmed sales and the state of the market and value accordingly. We are employed by the lender to protect their interests and have parameters within which we work. Some lenders insist on seeing the evidence used - not much use to provide it and then ignore it.
So far as rentals are concerned - curent rent is s good guide but once again lenders require an achievable figure not necessarily what is being paid. I sometimes go the other way and put in a higher figure if the evidence suggests it.
My experience over the last 6 months (in my area) is that sale prices are falling, particularly at the higher levels and that over the last 3 months rental values have flattened and are now falling slightly.
And don't think that it's valuers being overly cautious - I have been doing this for over 45 years and so know many esate agents whose opinions I trust, and it is their view as well that achieved sale and rental values have fallen recently.
Finally, don't ask me what's going to happen next - I've only been through 5/6 of these cycles and and have no idea how to make accurate predictions.