If you have been checking out price data online, or had your property valued by real estate agents, don’t be surprised if the bank’s valuation is much lower. This doesn’t mean that your property isn’t worth a higher figure if you sold it today, but banks always look to cover themselves in case things take a turn for the worst.
So, even though on the open market you may be able to sell your property for four hundred thousand dollars, the bank might only value it at three hundred and eighty thousand.
You may not like the figure and the price may not be accurate because the valuer has misread the market conditions or hasn’t found similar properties locally with which to make a comparison. However, it’s this valuation your bank will go with and they are unlikely to be persuaded otherwise.
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