How can I be sure the asking price will match what the bank values a property at?
Last time we talked about how you know that you’re getting the best value for money in a property. When it comes to how your bank values a property, it can be similar. Most will use comparable properties in your area to arrive at a valuation. So it follows that they will see the same information you found in your research of property value in that area.
You don’t have to be in the dark until the bank provides a valuation though. These days, consumers have plenty of resources at their fingertips. These can quickly estimate the selling price of a property for you. In most cases, it is unusual for Banks and Valuers to arrive at a value less than the purchase price of a property. This is because the market value is considered to be what the buyer paid on the day of the sale.
An expert Real Estate Agent will also provide you with all the right information. That way, you can purchase with confidence and the rest should follow!
There are exceptions though. Firstly, if you are prepared to go significantly over the guide price, then you might find yourself outside of that comparable property price bracket.
Secondly, if you don’t purchase a building or strata report you will be unable to confirm that there are no major issues with the building. You might then find the bank takes into consideration risks that you were unaware of when you parted with your money.
Have more questions about how banks value properties? Email us at email@example.com using #AskSchwarz. The top three questions asked before 15th July 2019 will be featured here on the Schwarz website.The best question will also receive a $100 Uber Eats voucher (terms and conditions apply). So, ask away! Find out more: https://www.schwarzre.com.au/ask-your-northern-beaches-property-experts-and-win/.