Valuation of property

HI ,anyone out there who can explain me the following :

A property for sale ,asked mortgage offer at 2 local spanish banks ,

They both use same valuation company for the valuation,but both banks still insist having a seperate valuation by same valuation company ....,and do not allow me to arrange it directly myselve at the valuation company .

so i will have 1 valuator going to the property and i will have to pay twice for same valuation.!! ,a matter of copy and paste and just add a different bank name on it i would think .

thx Kita

It is normal, although not practical and especially not cheap for the client. I think that the reason is, for one, that banks always want to use their own valuation company (even if it is the same), two, banks usually have got a private agreement with a valuator, I don't mean for illegal things, just that they have an agreement by which they send business to the valuator in exchange of the valuator, as much as possible, evaluating "favorably" so that if the bank wants to give the mortgage it can do it (for example, within reasonable limits, putting the value in 150000 instead of 145000 so that the 80% of it is what the client needs to go ahead).

A valuator is a valuator and supposedly always legal, so one should be able to contract one oneself and send the report to any bank, but any bank will tell you that they don't want the report you have, they will only accept the one given by their own valuator. Also, it is as well a question of them believing in their valuator and preferring not to take risks with some other's report.

Hi Kita,

it is actually quite common for a lender to accept an extisting valuation as long as it is still valid and not near the end of its 'life'. The valuation company used must be one that is on their panel and there is usually a small fee to change the lender name on the report.   In your situation it could just be that if each of the lenders are aware that you have applied to the other, they may both just be digging their heels in!    It could also be an administrative principal, in that neither lender wants the responsibility of changing the ownership!