Due to the fluctuations in the property market, it is normal for property valuations to rise and fall. Especially when many developers launch new projects, they sell properties at a series of price reductions in order to promote sales. Often the two price lists are only a few months apart, but the selling price There is a clear gap, which will have a greater impact on the overall second-hand residential property prices. Banks are cautious about mortgages, and buyers of second-hand properties are equally cautious. They should make sufficient preparations and learn more about valuation information and techniques before making a purchase.
Before a buyer signs a provisional sales and purchase agreement, the most important step is to negotiate the price with the seller. To evaluate whether the price agreed upon by both parties is below the market price, the most basic way for buyers is to check the property valuation online with different banks.
Generally speaking, if it is a popular large housing estate, the difference between the online valuations of various banks will not be too big.
Online valuations may not be the best on the market
However, online valuations are only for reference. After all, online valuations are updated at different frequencies by each bank, and the valuation information obtained by buyers solely from the Internet may not necessarily match the market price.
It is not safe to assume that you can get a sufficient loan when applying for a mortgage based on online valuations alone.
After referring to the online valuation, novice buyers can actually ask bank staff for a telephone valuation.
The advantage of the telephone valuation is that it will be cheaper than the online valuation. Therefore, it is normal if there is a discrepancy between the online valuation and the telephone valuation, because the former is usually updated later.
It is worth noting that the valuation standards of different banks are different. Therefore, do not think that the valuation obtained at Bank A is directly equivalent to the valuation done at Bank B. There can be differences between the two.
Therefore, buyers should not be "lazy" and think that they can ignore it after asking one bank. They should find more banks or banks of different sizes for valuation, so that the data obtained will be more accurate.
However, even after mastering the valuations from multiple banks, it does not mean that the buyer will be foolproof when applying for a mortgage and will definitely be able to "borrow enough".
Due to the current falling market environment and the large fluctuations in property prices, banks are cautious in lending. After the buyer and seller sign the provisional sales and purchase agreement, the bank may re-evaluate the property.
The bank may come to your home and do an appraisal again.
Especially for some housing estates with relatively few transactions, banks will come to conduct appraisals. Only after the appraisal is completed can buyers confirm whether they can "borrow enough".
Generally speaking, if the price of the purchase and sale contract is not very different from the bank's valuation, for example, within 5%, even if the original unit valuation is insufficient, there is a chance that it can be increased, and there is no need to worry about insufficient borrowing.
However, in order to go to the meeting smoothly, it is beneficial and harmless for the buyer to inquire with multiple banks.
This is because, as mentioned above, the valuation lines used by different banks are different, and there may be differences in the valuations done by banks. Therefore, other banks may have higher valuations. In this case, even if Bank A has an insufficient valuation, Borrowers have the opportunity to borrow enough from Bank B, and they do not necessarily have to raise the money immediately.