bank value discrepency

Posted by kitty (12 days ago)

I am interested in a property which is advertised at 3.9 million.
Standard chartered value it at 2.8 mill and HSBC value it at 3.3 million.
Can anyone recommend an independent person who can come and value the property for me? In my opinion it seems the property is way over priced... :)

Posted by walkup2 (11 days ago)

If the valuation is for the purpose of raising a loan and the apartment is in an old Chinese building then the valuation is just a reference point for the bank and is not necessarily a reflection of the market value of the property which can be and is normally higher. However, some sellers in Mid-levels are 'loading' their asking prices. The question for you is whether there is anything about the property which justifies a premium.

Posted by Patrick Yiu (11 days ago)

Supposingly you find someone value higher, but the bank only follow their own valuation, what good does it do to you? On the contrary, you should doubt this property actual market value. Unless you value it for immigration purpose.

By looking into the recent transactions, if nothing within the past three months for the same building, then look into similar property in the vicinity.

Bank do not consider decoration and view as part of the value of the property, but those things reflected on the market.

Posted by Moppet (10 days ago)

Agree with Patrick, the bank will only lend based on there valuation and any extra you would have to find yourself.

Posted by kitty (10 days ago)

my dilemma is, that i am new to the 'marketing game' and to me it seems that it is way overpriced.
Can anyone recommend an independent person who can come and value the property for me? So i can find out what it is worth (irrespective of what the banks say) I am not looking to get the bank to change their value, i just want to find out its REAl value.

Posted by Patrick Yiu (10 days ago)

You miss the point! There is no surveyor/valuer or estate broker who can tell you the value of the property without bias. I studied valuation before, they only based on the past record and the market trend to tell you the number, which you can do this on your own by some research. Trust your own findings based on facts and figure.

What matters is the money you spent have no other better choice, than this is the right amount at that very moment. This decision is correct only at the time you make it, not next month. Market changes from time to time.

Posted by elysium168 (10 days ago)

check out the latest transactions of similar unit or within the same vicinity at this website: www.centadata.com/ephome.aspx

it gives you an idea on how much other people had paid. since the property market had been quite for more than a month now, the prices in the latest transaction here should still be valid today. You can probably negotiate even slightly lower.

Posted by walkup2 (10 days ago)

Kitty,
what type of property is it and what makes you think the property is overpriced?