Bank valuations

We've just enquired about the valuation of our property in Novo Arcos and have been given a bank valuation that is some 30% more than the purchase price and about 75% higher than the current market value. We've checked with the bank and they claim there has been no mistake and that they stand by the valuation.

So, what's going on here than, why are the bank grossly over valuing the properties? Has anyone else found the same thing?

Cheers,

Tim.

Hi just wondered whch bank has valued the properties and what figure are you basing the current market valuation on.  Also with regards to completion date feb 08 is this a recent date given by Luis or is it in your contract.

Helen

Hi Helen,

BANCA MARCH are the ones who have given us the valuation, as for the market price I just did a quite scout round the net for similar sized properties but prices do seem to vary quite a bit. The completion date was given to us by Luis Méndez.

Tim.

If you read my previous posts you will see that one of the reasons we got totally fleeced in our purchase of our Novo Arcos townhouse, was because the valuation seemed alright. Our mortgage is with an American bank. But I don't know who carried out the valuation - it must be a local surveyor?

Basically, we completed in December 07. The recession had already affected property values generally by then but our house valuation still came out over 200,000 euros, nearing 210,000 I think.

We paid 219,000 euros plus IVA for our new townhouse on completion. But months later, when we finally got the paperwork through from our solicitor, we found that Romanber were only paid circa145,000 euros. Presumably the agents, Sunset estates took the difference.

Romanber said that 145,000 euros was indeed the correct value of the houses - they are still up for sale around that mark.

I hope this helps. Consider an independent valuer for your survey and check thoroughly the prices that other people are paying.

We have suffered a lot of problems since buying our house as you will see if you read my past posts. The agents appointed by Romanber actually stole 8000 euros out of our bank account, a lot of which we never got back.  We have sales literature which showed a park in front of us, and lake-view behind. We ended up with a massive block of flats where the park was and no lake-view behind, just roof-tops. Hopefully those of us who have been mis-sold in this way will finally be compensated. It will be good when I can write positive stories about the area in which we live as negative stories detract from ther development . Some people do not write any more on the site about the problems at Novo Arcos becuse they fear negative publicty, and it is one of the reasons why I haven't wriiten recently, but it is a difficult dilemna. If the problems appear to go away thewn no-one will think they need to be sorted out.

Andrea & Mark

Re bank valuations......you would hope a large bank such as Banca March would act professionally & give aa accurate valuation as far as is possible.....overvaluing properties seems a bit of an own goal as it would leave them more exposed to financial risk should you default on the mortgage.....unless they simply calculate they have 30% (ie your deposit) to play with before they need to start worrying.....but that would be very cynical...

 I suppose the answer is to get at least one other valuaution from a trusted source so you know what the real current value is & hope it matches the banks.

Thanks for all your replies.