Sworn valuations - What are they worth??

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From: David U


Hi

What are sworn valuations given by real estate agents worth? In other words,will a bank valuer accept this as gospel even though the purchase price may be lower or are they to be taken with a pinch of salt?

Any comments would be appreciated.

Thanks

David

 

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Reply: 1
From: Dave


Hi David,

Normally, real estate agents don't give sworn valuations. They simply give
their market appraisal, which they will often misleadingly call
'valuations'.

There are, however, a few real estate agents who are registered valuers
(this is part of their official service offering) and are recognised by the
major lenders. A Sworn Valuation from such an agent is ok. Sworn
valuations are generally 5% less than the market value, and this gives
lenders some comfort.

Cheers,

Dave

 

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Reply: 1.1
From: David U


Thanks Dave for clearing this up

Regards

David U

 

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Reply: 1.1.1
From: F. F.


Another thing with sworn valuations is that Banks have groups of valuers who they use and recognise for all of their work. So having a sworn valuation from a valuer who is not on your financing institutions panel isn't worth much to you. You need to check who the sworn valuation is by and if they are on your banks panel.
Derek

 

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Reply: 1.1.1.1
From: David U


Derek

I guess you just ask the financial institution who is on their panel?

David