Valuer Recommended By The Bank Have Property Valued Very Highly

I

Ireland.1

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Hello All, we are looking for some advise please. We are selling an investment property that has found itself in difficulty. We asked the bank could we sell the property at today's values and after sale pay them the outstanding shortfall. The bank asked us to arrange for an estate agent to visit the property for a valuation. The estate agent was to be nominated by the bank. The valuer arrived on the day of valuation and informed us that the property had not lost any value since the boom. We explained that we had a local valuer value the property and they valued it at a lot less.

We are concerned that the banks overly confident valuation will frighten perspective buyers.

Our question, can we contest the valuation?
 
"Our question, can we contest the valuation? "

Yes. You can say that you think it is over optimistic.

I don't understand why a valuer would over value the property - is it unusual in some way? So that it would be impossible to say what a willing purchaser might/ would pay?

In the end, the only way to fix the value is to put it on the market.

mf
 

If the valuation is lower than the bank wants, the property could sell quickly, but Ireland.1 would be left with a significant deficit which, in turn might become unsecured debt and warrant a debt write down/off in a PIA.

Contest the valuation for definite.

However, if the property is valued higher, maybe there might not be much to pay after a sale,or maybe the property would not sell at all and Ireland.1 would still be on the hook for the mortgage repayments. Cynical thinking, I know. But who knows what the banks are actually thinking to stop mass write downs.
 
Thanks all for your prompt responses.

At the value we were given I do not believe we have a hope in hell of a sale. Other properties for sale in the district are valued a lot less. Daftpunk I think you might be right as we were also thinking along similar lines. The local auctioneer informed us that the valuation was off the wall and would warrant zero interest. He was also baffled by the property supposedly losing no value since the boom! We will contest and keep thread updated.
 
Is this a case where the bank are just slowing down ( or simply stopping)the sale, ie. if you are making payments on a house in NE why would they surrender it only to write of the NE in the end.
 
Ireland.1 said:
We explained that we had a local valuer value the property and they valued it at a lot less.
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In the tiger era, I am aware of a property where the banks valuer valued it at a ridiculous level - not only much higher than other valuers valued it at but it was the most expensive land in Ireland ( outside of Dublin ), by a long shot, in a side-treet in a town in the west of Ireland. The banks valuer valued it at an astonishing 17 million euro an acre. He also made other major inconsistencies on the valuation. For example, if a valuer is valuing a 210 year old cottage for a "buy-to -let" mortgage, and there are a total of two rooms downstairs, should he be allowed claim there is also a utility room when there is none? Should'nt valuers for banks have to have some qualifications or experience working for a proper valuer - rather than be a home based engineer? Should'nt there be some standard? In a small community should a valuers relationship with the estate agent / mortgage broker / property vendor influence the valuation?

arknine said:
Ask the bank to instruct a 2nd valuer to get a 2nd opinion
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They are aware of the discrepancy and different personnel in the bank have eventually promised an investigation....before each of them in the bank leaves the bank or whatever. A bit like Priory Hall....some "mistakes" were made in the boom but everyone in authority has an excuse or an "out" or is not interested or puts it on the long finger.
 
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