Expert Advice by Gavin Smith


Many people have asked me over the years, “so, when I’m getting a loan, can I supply to the lender a valuation I have already had done?”

Yes, you may, however, you will probably find that the lender will not rely on that valuation to value your home, and will in fact instruct a valuer of their own.  Lenders are very careful to ensure that everything is above board and accurate.

In the event a valuation does state that the property value is more than your purchase price, the lender will use the lower of the two figures as the value of the property.  And unfortunately, it doesn’t work the opposite way.  If you pay too much for the property, that doesn’t mean that someone else would be willing to pay the same, so the lender will in that case, rely on the lower amount being the valuation amount.

Another question frequently asked is “Can I specify which valuer is to be used by the lender?”

Not likely.  Keep in mind that the valuation of your property is one of the things that your lender needs to do to be “responsible.”  It would be irresponsible to allow anything to influence that result to make it different than a proper valuation.  So, just trust your lender to have a good panel of valuers who will provide unbiased valuations.

Also be aware that it is also in your best interest to have an accurate valuation that you can have confidence in.  Should you be forced to sell due to a change in your circumstances, you want the assurance that you will be able to have enough to cover your obligations with a bit of a margin of comfort.

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Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.