How to get property valuation?

 

Property valuation?

 

First of all, what is property valuation?

Before purchasing a property, banker need to check the market value of the property before proceeding with the loan submission. The reason is, the selling price in the market is not standardized as seller might be selling at an overstated price than the average market property price.

Banker must liase with valuer to get the value for borrower’s purchasing property price whether it matched. They will provide the valuer with property details as below to get verbal valuation.

– Property full address
– Square feet
– Property type
– Any renovation done and cost

Valuer will assess their database regarding this particular property to search for the latest transacted price, thus they will deduced whether current asking price is reasonable. There’s time when the property price value couldn’t matched, which selling price overstate and seller unwilling to lower down the price. Hence, buyer have to fought out additional down payment to top up the difference.

Example

1.
Property price selling Rm500,000
Market value from valuer Rm500,000

MOF 90%

Loan amount max (RM500,000 * 90%)   RM450,000

2.
Property price selling Rm500,000
Market value from valuer Rm450,000

MOF 90%

Loan amount max (RM450,000 * 90%)  RM405,000

3.
Property price selling Rm500,000
Market value from valuer Rm600,000

MOF 90%

Loan amount max (RM500,000 * 90%) RM450,000

Max loan will based on the lowest amount

For point number 2. Seller have to fought additional RM45,000 on top of the RM50,000 downpayment to purchase this property. (Purchase price RM500,000 – Loan RM405,000 = RM95,000).

Every bank has its own panel valuers and every valuers will have different panel banks.

Valuer
BankJB JURUNILAIIPCVPCCHESTER
A
B
C
D

 

Hence, people are sometimes confused that banker from same bank itself give different valuation, bank itself attached to different valuers. Thus different banker get different valuation, some will get higher value due to “ Good relation” or able to provide newest price transacted info document *SPA* to the valuer. Or they made and effort to get the value matched.

Sometimes, you’ll received higher valuation for Bank A than Bank D, because VALUER IPC is giving higher valuation for that property area than VALUER CHESTER. VALUER IPC has a better confidence in that are than VALUER CHESTER.
 

Fun Facts

  1. When wish to get valuation, you could do it yourself and call the valuer to valuate your property. However there’s over 100++ valuers, you will never know which valuer could offer higher valuation. So it’s better to let your broker do the hard-work.

  2. Most of the banks would need 2 valuer valuation before approving the selling price market value. However, certain bank only need 1 valuer valuation.

  3. You can call in to check the value by yourself. However, valuer won’t entertain any clients call other than banker. Just be smart, when you call them.

  4. First of all, bank will receive valuer verbal valuation checking when pre loan approval. Post loan approved, valuer will visit your property and perform actual inspection on the property. Then they will provide an actual valuation report to the bank.

  5. If banker only verbal valuation pre housing loan/ mortgage loan approval, how to ensure the value banker receive won’t be mismatched at later stage when valuer perform actual valuation visitation?

  6. Price range of valuation report:

 

Market value RMAll-in Fee
1 – 150,000666
150,001 – 200,000719
200,001 – 250,000825
250,001 – 300,000931
300,001 – 350,0001037
350,001 – 400,0001143
400,001 – 450,0001249
450,001 – 500,0001355
500,001 – 550,0001461
550,001 – 600,0001567
600,001 – 650,0001673
650,001 – 700,0001779
700,001 – 750,0001885
750,001 – 800,0001991
800,001 – 850,0002097
850,001 – 900,0002203
900,001 – 950,0002309
950,001 – 1,000,0002415

 

Any inquiries do drop down below comment section 🙂
Cheers

 

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