Bank Valuation above sale agreed price

Bal0u123

Registered User
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Hi All,

I was hoping someone could help. Myself and my other half are selling our home to my sister and moving to a bigger place. We agreed a purchase price by completing an online valuation (compares to 3 similar properties in the area) about 3 months ago, it looked inline with asking prices for similar properties on myhome.

Fast forward 3 months we're ready to sign contracts and she needed a valuation from the banks approved list of properties for the mortgage. The valuation has come back €70k over the agreed price. The reason for the high valuation is that my neighbor sold his home about 2 weeks ago for that price. To me it seems to be an anomaly, the other property used for comparison was just €20k over what we had agreed which I guess would be reasonable enough given the rise in the market over the last few months.

We don't want to charge my sister above odds because of a valuation we don't agree with and she couldn't afford more so the sale would fall through anyway if she were to pay the difference.

Is this a problem? I presume it's good news for the bank but could it give the impression of a gift or could we argue the market changes since agreement and point to the online valuation?

Thanks for your help!
 
It's no problem at all for your sister, for you or for the bank.

It would only be a problem if they were giving her 80% of the purchase price of €100k and the valuer said it was worth only €90k.

It might be no harm to get an alternative valuation or certificate that the price is a fair one. If you sell your house below market value, the buyer could be deemed by Revenue to be getting a gift of the difference. It's unlikely to happen, but it might be worth making sure you are covered in case Revenue raises it.


Brendan
 
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