Why do banks and agents value your home differently?
Have you ever wondered why your lender will give you one value for a house while the real estate agent has said something completely different?
How do you know the real value of a property when everyone is giving different quotes?
The difference in the two valuations is due to the lender and the agent assessing different aspects of the property’s value – the lender is looking at how much to comfortably lend you in relation to the cost of the property, while the agent is looking for a sale price.
Bank valuations vs market valuation
The property’s market value is the estimated amount for which the property should fetch on the date of valuation, assuming a buyer and seller were to enter willingly into a sales transaction. The bank valuation is the amount that the lender is prepared to lend against the property.
How is the bank v...
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