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Bank valuation - Who pays?

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  • 28-10-2010 12:40pm
    #1
    mathie
    Registered Users Posts: 5,102 ✭✭✭


    Hi
    If someone is looking to buy a property and the bank gets the property valued (as part of the process for loan approval) who pays for the valuation?
    Thanks


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    #2
    Dancor
    Registered Users Posts: 3,624 ✭✭✭Dancor


    In my case and anyone else that I know, it was the bank.


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    #3
    triskellion
    Closed Accounts Posts: 37 ✭triskellion


    The borrower pays. Either directly to the valuer or through an "arrangement fee" with the bank.
    This fee may also include the banks legal fees for setting up the mortgage.
    The borrower may not end up paying if the bank waives the arrangement fee or negotiates with the valuer to do it for free.


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    #4
    irlrobins
    Registered Users Posts: 7,541 ✭✭✭irlrobins


    I had to pay the hire and pay the valuer myself last year when I bought.


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    #5
    BC
    Registered Users Posts: 1,326 ✭✭✭BC


    I had to pay myself.


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    #6
    Dancor
    Registered Users Posts: 3,624 ✭✭✭Dancor


    ^^^
    Everyone above, Really?

    I got my mortgage over the past few months. When it came time for the bank to get it valued they looked after everything.

    I was with BOI, and my mate who recently got his is with EBS.


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    #7
    mrgaa1
    Closed Accounts Posts: 759 ✭✭✭mrgaa1


    maybe they've changed their tune and are now getting more serious about it.


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    #8
    BC
    Registered Users Posts: 1,326 ✭✭✭BC


    Mine was a few years ago and the valuation was a joke. They didn't check anything.


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    #9
    mathie
    Registered Users Posts: 5,102 ✭✭✭mathie


    Thanks guys.

    The reason I asked is that a mate was asked to stump up 130 for a bank valuation.
    He'd placed a bid on a house and it was accepted and now the valualtion is saying its ..... surprise, surprise .... the same as what he bid.

    Surely this is a bit of a scam?
    What 'service' is got for the valuation.
    Sure anyone can say 'Oh yeah it's worth what you bid!'


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    #10
    Patrickof
    Registered Users Posts: 669 ✭✭✭Patrickof


    Yeah, there is that element of it looking a bit dodgy when the valuation is exactly what the offer is.

    But, other than in unusual circumstances (maybe where a parent is selling a house to a son/daughter for below market value) then by definition the accepted bid IS the market value.

    The purpose of the valuation is to ensure the bank that the property being bought is worth what is being lent against it, and that they can recover the cost if they need to repossess and sell the house. It's not future proof though, the valuation is only valid on the day it's done. There have been instances where banks have issued mortgages for non-existant properties, and the valuation is one way to ensure that this doesn't happen.


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