How do bank valuers work?

Do they normally value it to market price by recently sold data or they take 80% of the market price? Or do they value as high as possible? How close would they get to the estimated price by rpdata?

 

For a purchase valuation - the vast majority will come back at purchase price.

For a refinance/equity release valuation - they normally come back lower than the customers estimate (in my experience).

Both are based on recent comparable sales.

RP Data can be helpful - but don't rely on it too much.

Cheers

Jamie

 

It depends upon the instructions from the lender.

As they are valuing for a distressed sale, market value is of little significance as the bank needs to ensure that it's position is secure.

 

they will only use sales which have settled, meaning the comparable sales they rely on could be 60-90 days "out of date". So if the identical house next door sold for a good price yesterday, this won't be considered in their sample set for ~ 3 months.