Bank valuations

Depends on who the sources were JPD. I would never believe any bank valuation unless it was one specifically ordered by me for me. As with many things in Spain there are corrupt valuers - while genuine valuations can vary between one company to another there is a benchmark on cost per square metre to build that they are supposed to follow. Think I may have mentioned this already but while recent local transactions will be considered for price comparison they are not the primary line of the equation. Just because the developer or any estate agent is selling something for 30k more than you are buying does not mean the bank will value it that way.

Hi Smiley, our solicitor told us that in Playa Flamenca area it is usual for property to be valued at 2300E per m2. But he said he can get it valued at, 2700 m2. Now our bank say she can go to 3000 or more per m2. How can that be?

So, is it a case of shopping around ?Which is the safest option low or high?

Cheers John and Trish

Hi JPD,

This seems rather puzzling.

Our apartment is the same size as other apartments in our block, but all have differing values when being re-sold.

If you face inland, they are cheaper, facing the sea is dearer, up a floor or two is dearer, overlooking the pool is dearer.

So I think just giving a bllpart price per square meter is very misleading.

Rgds,

As regards the safest option - neither! Need to explain my answer - the banks have a formula to follow of cost per square metre to build. It depends on the company how that valuation is interpreted and whether you need the valuation for mortgage purposes. If you are arranging a mortgage the lender may or may not accept the valuation that you are being provided by the lawyer. There was a time here when it was possible to buy a valuation figure. To wit I buy at 1,000,000 Euros - I want a bank valuation at 1,700,000Euros as I need that to get the mortgage I require - I pay a man a certain sum of money and miraculously the valuation report is issued at 1.7 million Euros. Now it is not something I have ever done nor have condoned it in others but it has been possible to do that although it has got increasingly difficult with more scrutiny from the Bank of Spain.

To be honest I would always want to know that the valuation I was getting was a true valuation so that I know that what I am buying represents value - not simply a figure plucked out of the sky because someone has said to me how much do you want me to value it - effectively the valuation is not worth the `paper its written on. I dont know the specific area or what you are buying but my view is that 2700 per square metre is perhaps a little generous but if you want them to give you any old valuation then go for it.

Does anyone know the price per square metre for property at the moment.  We are selling privately, apartment is in La Cala de Mijas

Thanks

Janis

Thanks Rixxy have sent you an email.  Janis

Hi still have no idea of price per sq metre.  Have sent Rixxy two messages no reply as yet, can anyone else help please.

Thanks

Ooops - I got problems wid me email as the outlook box thingy is frozen so Im trawling through on te webabased one - I will reply today Janis - was in portugal yesterday then running like usual blue arsed fly today - bank valuations, viewings and hopefully catching up on some sleep sometime this week!!!

OK ok all excuses - Ill do it now.

Hi again,

Rixxy i got the email telling me about your problems with your computer did you get my reply? 

It looks like i am going to have to organize a private valuation myself as the guy who wants to buy it now wants me to do it after promising that he would.  Does anyone have any contact details for one, i just want a fair realistic valuation.

smiley? this is just a general query wondering if you know what the valuations in duquesa are coming in at per sqm? everyone seems to just pluck figures out of the air and i know you have some knowledge on this. i cannot get my valuation done from the bank because Scott, my mortgage broker over in spain won't proceed until licences are back in case we get timed out, even though we keep trying to instruct him to get the mortage application in now.  i would rather just get my mortgage in place as it is due for completion very soon and surely it will be much quicker to complete if bank guarantee in place no? he can't even tell us which bank he is using and if we'll have a 70 or 80% mortgage.  we have paid him a few hundred euros as a fee some months ago but he has done nothing since.  is this normal procedure?

ta.  suzanne

Tell him to extract his digit and get the application in - God I pray for clients like you who dont wish to dither unless there is good reason such as better income one year than the next or something - I have to get all over people like a cheap suit somertimes to get dox to Spain. He is spot on that valuation should not be done until the LFO is issued - bloody hell we do AIP's for clients two years in advance - subject to updated dox but at least the approval is there and then just need updated payslips and bank statements. Has he given you a quote to approve with the basic terms of the mortgage to approve. It can be difficult to assess where one is going to place the loan until you have all the documents and frequently we find clients dont impart all the information during our telephone fact find and explanation - things sometimes come up on a credit check that they have forgotten about - until we have approval we dont disclose the lender either for that very reason - essentially all mortgage money comes from the Bank of Spain so I guess thats how the question could be answered - for mortgage borrowing they are considered lender of last resort - hence the conservative approach to assessing income and debt here - the banks are playing by BOS's rules - they like to random audit as well to ensure the rules are being complied with.

Where have you bought in Duquesa Peps and what is it - is it Ros y Falcon as have had quite a few done in there now. cant remember off the top of my head and will try to look out some vals already done tomorrow but its another busy one so wpould be helpful if you could remind me direct to my e mail address - not by PM

I can help you there Pepes, But a val is broken down into interior useable space, terrace size, garage storeroom gaernd etc.

I had a val done in Duquesa - princess Kristina for a 3bed 2 bath penthouse, 148sqm build with garage space and terrace of 65. Came in at 360,000 euros.

Janis - yes got the email but was out most of yesterday - you will have this in a few minutes. Thanks for your patience.

Actually I do. We used to deal with a company based in estepona who did all our vals. They did a full val service or a written pre-val specially for us which was cheaper. Let me dig out the details and see if I can sweet talk them into doing a good deal for you.

I havent used them for a while as all our clients sorted their own mortggages and the valuers wanted to get the money for the full vals on a purchase!