Valuations

Dear all,

Can anyone let me know how the results of valuations are these days because of the credit crisis. Are  valuations fall down a lot and how much is the difference with the prices in the deeds (selling price) comparing the price of 2 years ago?

Edu

 Valuations have come down quite a lot.  They had to really, it was all too unrealistic.

If it's for a mortgage though I think most lenders now will base the mortgage on the sale price and not on the valuation.

Justin

 very true Justin.....

You are looking at a 20% drop in valuation figures.

Tinsa and other companies have been instructed by the bank of Spain to undervalue to prevent a reoccurence of overpricing.

And all banks now lend based on the lower of purchase price or valuation - no longer solely based on valuation. Fall in bank valuations varies by area and company doing the report - two valuations recently by different valuers on identical propoerties reflected a difference of in excess of 10%.

Differences in selling prices again are dictated by area and what you have for sale (or are buying) - some property is still holding up in areas where there will be little new construction (eg mallorca) - where there is serious over supply or developments are at risk of not being completed then prices down massively.