Getting apartment valued

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Pablo74

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Hello,
My girlfriend bought an apartment 2 years ago with her friend. They both live in it and pay the mortgage monthly. Her friend is getting married soon and needs to sell her share in the apartment. She wants to get the place valued to see what her half is worth.
My girlfriend does not want to sell but feels she might have to. She cant get a mortgage to buy out her friend.
How do they go about getting it valuated ?
Is there a cost for this ?
If so, how much would it cost ?
Are there any pitfalls to look out for ?
Thanks
Pablo
 
Ask a few estate agents to value it? They may charge a fee for this. Bear in mind that EA valuations may or may not be realistic in the current market but at least if you get a few you can average it out. Also check to see what similar properties in the same area went for recently if possible. If she can't get a mortgage to buy out the friend's share then is the issue not moot?
 
Any estate agent will value the apartment. Not a half of an apartment.

It will cost about 150-250 plus VAT.

Pitfalls? None in having the aprtment valued. But if what you are really asking is what will happen then............

1. Did they have any agreement as to what would happen if either wanted to move on?
2. If your girlfriend cannot buy out her friends share then do either of them know anyone else who might want to buy the half share? A complete stranger won't buy it but a friend or relation might?
3. How does your girlfriend feel about someone else owning the other half share?
4. Its not a good time to sell so they probably will do so eventually and maybe the friend could rent her bedroom out until they can sell.

mf
 
ClubMan said:
Ask a few estate agents to value it? They may charge a fee for this. Bear in mind that EA valuations may or may not be realistic in the current market but at least if you get a few you can average it out. Also check to see what similar properties in the same area went for recently if possible. If she can't get a mortgage to buy out the friend's share then is the issue not moot?
Click to expand...


What is the Issue Clubman .... move ?
 
mf1 said:
Any estate agent will value the apartment. Not a half of an apartment.

It will cost about 150-250 plus VAT.

Pitfalls? None in having the aprtment valued. But if what you are really asking is what will happen then............

1. Did they have any agreement as to what would happen if either wanted to move on? no
2. If your girlfriend cannot buy out her friends share then do either of them know anyone else who might want to buy the half share? A complete stranger won't buy it but a friend or relation might? Might know one person
3. How does your girlfriend feel about someone else owning the other half share? If she knew the person, it would be fine.
4. Its not a good time to sell so they probably will do so eventually and maybe the friend could rent her bedroom out until they can sell. She is building a new house with new hubby and wants no other ties. Needs all money for mortgage

mf
Click to expand...
 
There are companies, nor estate agents that are mainly valuers and may be better priced as well. Companies such as Vincent Finnigan in Dundrum if ure in Dublin and others. I used the latter and it cost just 130€ which included a valuation report.
 
I dont' have direct experience in this area, but I suspect there could be significant deviations in valuation depending on who does it.
An estate agent who does a "no obligations for free" valuation is probably touting for your business and may value it higher (keeps seller happy). A bank providing mortgage approval will have a list of recognised valuers who will value the property lower, protecting the bank from customers buying overvalued property.
 
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If there is a possibility that the property will be remortgaged in the near future, it might be an idea to get a valuation from a valuer that is on the panel for your bank. That is assuming you are happy with the bank.

Two reasons for this are that you might save on getting a second valuation for the remortgage and valuers on banks panel are on a flat fee. They have no vested interest in getting your apartment to sell.
 
Just an update on the goings on......
The apartment was valued 30,000 below what the girls paid for it :eek:
My girlfriend still does not want to sell as it would she would be making a serious loss (15k) but her friend still wants to.
What can one do in this situation ?
Pablo
 
And no doubt it will sell for even less than that valuation.

What was the legal agreement between the two girl if this situation arose?
It is not only the 15 grand your girlfriend will lose (and her friend) as they will both also lose FTB status so to buy a new place they will have to spend on stamp duty also.
It might be worth pointing this out to the girlfriends friend.

Ultimately if one person wants to sell then they probably have to sell - depending on what kind of legal agreement they entered at the time of purchase.

How does your GF know she cant get a mortgage to buy out the other half if it was only valued recently? What valuation was used for a mortgage application?
She should definitely go to a bank with the new valuation and see can she buy her out based on that.
 
It depends on your income, the value of your house, the mortgage you have outstanding, your girlfriend's income, the amount of the mortgage they have and the value of their apartment as well as any other debts you may have.
 
OP - you can see that your girlfriend is in a tricky situation because she purchased a house without having an agreement in place as to what was to happen if one person wanted to sell. How would you feel if you purchased it now and it dropped again in price and you wanted out because you no longer get on with your girlfriend. How will your girlfriend feel if you purchase it now for minimum 15 K loss, she also has to take the hit for her 15K loss. This 30K drop is not real, it's only real if one were to sell, it could be a lot more or less. I am assuming you are trying to help your girlfriend but you don't need to join the mess, have a serious think about it.
 
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