How does a bank value my house?

A valuation for mortgage purposes typically determines the ultimate sale price of your home. When someone is in the process of buying a new home with a mortgage, the lender will send a surveyor round to look at the property and report back. 

A mortgage lender is responsible for managing the level of risk against a buyer’s loan so will decide if a buyer is paying too much for a property. 

At Link Agency, we use something called an automated valuation model when we visit your home to conduct your market appraisal. This is the same technology that lenders use to value your property for mortgage purposes. An automated valuation model takes into account the area, the type of property and the last known sale price of other similar properties. However, it can’t take the condition of your property into account. This is why the knowledge and experience of our agents is so invaluable, and why it’s so important to take our advice on board. 

Any fees that a buyer pays for a mortgage valuation will be determined by the type of mortgage product that they’ve chosen. Sometimes the fees are included in the mortgage deal but, with other products, the buyer might have to pay a set fee. Your mortgage lender will be able explain the different options to you and help you find a mortgage product that works for you. We work closely with reputable, independent brokers who we are happy to refer you to for advice, if needed. 

You have a tough decision to make; you either have to accept a lower price for your property or consider not moving at all. Remember, a mortgage lender won’t change their mind about a valuation, and you won’t be able to re-market your home at a higher price because all banks have access to the same valuation data. We’re always happy to offer you advice and guidance on the best approach, whatever the circumstances.