Posted by
viny
17 yrs ago
Dear all,
Went to visit a really nice flat over the week end the bank evaluation is 4.8M but the asking prise is 5.5M I could put down the down payment (550K) but cannot cover the diff between the evaluation and the asking prise.
I was wondering if anyone knows what could be my option here?
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yinhk
17 yrs ago
You can ask various banks as they do not all have the same valuation. Some lenders (e.g. Citibank, BOC, GE) are more aggressive.
You can also get LTV up to 95% if you intend to live in it.
Alternatively, you can also try and apply for an overdraft to cover the difference
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2 things here. Remember only a fool pays the asking price. Property prices are always negotiable, bank valuations are a considerable tool in negotiating prices. Check recent transactions as well, these can be a pointer to what you should be paying not what a vendor "believes" the property is worth.
As mentioned above different banks value properties at different values. This can certainly get things closer together when taken into consideration with the above. If you are going to live in it it will be very easy to get a 95% mortgage. If not the 70% is all you'll probably get.
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My flat was valued at slightly less than the asking price and I shopped around for the best valuation. In the end, with my preferred mortgage lender, they asked to have a copy of the S&P and if the flat price was within 10% of the valuation then they would let me have the mortgage.
You sould also consider the reason why you liked the flat so much that you think it is worth paying so much over the bank valuation. If you like the layout/size/location etc it may be worth checking with agents for other flats in the same building and renovate it to the same style as the one you saw. It depends a little what time and energy you have to put into the final product.
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All good points above. Hire a good agent who knows you know that asking price is just that and negotiations always take place in HK even the rate paid to the agent. Best Advice, if after reasonable review on your part along with your agent something is not right, walk away as theres always another FAIR deal to make.
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