When you are buying a home or refinancing your loan, you will often need to get a property valuation performed. A property valuation confirms to the bank that they are not lending you more than they should and also that if you default on your loan and your house needs to be sold, the bank will get all their money back and not be left out of pocket.
Kim is building a new home at the moment and wanted to share her recent property valuation experience with you. Kim had 2 property valuations performed last month, one with Company A and one with Company B. Company A came back with a valuation price $620,000.00 more than that of Company B.
When you look at the 2 different reports supplied by Company A and B, you can see why there is such a huge difference in the price. The property report from Company A is very detailed and thorough with comparative sales and market evidence to support their findings. Company B who found the lower price provided a very basic report, it was clear that not much effort had been put in.
The moral of this story is this: If you think that your property valuation comes in under what you expected, then you can take your deal to another lender to have it assessed. Your broker will know which lender to take you to that best fits your situation. The Kaboodle team can provide you with a free property report so you can do your own research on the property before the valuation takes place.
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