Over the last few years lenders banks and other lenders have become stricter with their lending criteria in an attempt to reduce the number of loan defaults. Due to tougher lending practices banks now require confirmation of the value of the property before they will extend an unconditional offer for a mortgage. When the bank progresses your loan then after conditionally approving the mortgage, they will generally request a property valuation. This is known as a mortgage security valuation. When the bank progresses the loan to this stage, they will often appoint their own property valuer to inspect the property and confirm its value.
A bank valuer is hired by the bank so they have an interest in protecting the bank’s interests and are likely to offer a lower value for the property than what a current market valuer would do. The reason for this is because the bank simply wants to know that if the property had to be sold because you defaulted, they could recover the funds quickly without losing any money on the loan.
The risk of a bank valuation is that it may not reflect the true market value and if it’s lower than the offer you will be in a position where you either can’t purchase the property or where you have to source additional funds elsewhere.
This is why an independent property valuation is important. An independent property valuation from West Coast Valuers will give you the knowledge that you need when negotiating your mortgage terms with the bank. It will also give you the knowledge you need to make an informed decision about your property status. Although we do not offer mortgage security property valuations, West Coast Valuers can assist with a current market valuation which is based on research into the current market conditions, the condition of the property and the strength of the property market.
Why choose West Coast Valuers?
West Coast Valuers are diligent and friendly property valuers who want to help you with your property valuation needs. We take customer service seriously and pride ourselves on our accuracy. We can complete current market valuations that can be shown to any bank or lender when you’re in the midst of finalising your mortgage.
Give us a call on (08) 6245 2131 to find out more about our property valuation services or fill out our enquiry form.