who should organise bank valuation

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EthanIsHere

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Hi there, first time buyer here. I am wondering if I as the buyer or the bank/lender should organise and pay for the bank valuation after sale agreed?
thanks
 
Your bank\lender usually has a list of surveyors for the area they recommend if you just want a valuation, but yes it's down to you to organise and pay.

If you want a more detailed survey because you have special concerns then Property Health Check are more expensive but do a more in depth survey.
 
The bank will have a list of approved valuers - they are different to surveyors and really just want to verify that the property exists and is worth what you are paying.

This is largely to prevent you carrying out a fraud where you pay your brother twice what the house is worth and then default on the mortgage and leave the bank with inadequate security.
 
thanks all. When should I instruct the valuers? I'm using a mortgage broker and the mortgage application is still in processing
 
EthanIsHere said:
Hi there, first time buyer here. I am wondering if I as the buyer or the bank/lender should organise and pay for the bank valuation after sale agreed?
thanks
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If you are the intending buyer, then once the house is Sale Agreed, you should arrange and pay for a survey (not a valuation).

The survey is for your benefit.


Later, the bank will arrange and pay for a valuation, to protect themselves that the house exists, and is as described.

You do not arrange or pay for a valuation, and you won't be involved with it, although you may later see the actual valuation report.
 
Itchy said:
You do.
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For both of my house purchases the bank paid for the valuation before the mortgage was granted.

The only time I paid a valuer was to take advantage of a lower LTV rate a few years into the mortgage. That time the bank gave me a list of valuers and I paid €150 I think.
 
EthanIsHere said:
When should I instruct the valuers
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As late as possible in the process, there is a timeline on the valuation, I think its 3 months. After this time has elapsed, you will need to re-engage the valuer for a new valuation.

As the mortgage process is quite slow and laborious here, you won't be long eating into your time frame.
Also, ask the bank before engaging the valuer, if there is anything they are waiting on which will hinder the mortgage draw down. That way, should the valuation time expire, there is a better chance of the bank footing the extra valuation cost if its needed.

In my experience, the bank will wait till the last minute to ask for information which could have been requested earlier in the process.

Also, in my experience, the valuer will ask, what was the sale agreed price... and that's the valuation.
 
Before the bank will ever grant you your mortgage, they will themselves send a someone to make sure it's worth what you say it is in the application. Generally it's another estate agent. The bank will usually be in touch with you to make sure that person can access the property at a certain time, but you don't need to be there with them. They take a quick look, value it it & send a report to the bank generally saying yes it's worth this value. They pay for that. Mortgage application moves on from there then!
(A survey of the house is your thing & you organise and pay for that, but it's not a valuation thing).
 
In the case of BOI, you must organise and pay the valuation fee from an approved list of valuers, KBC may organise, but will charge you for the valuation. I doubt any bank are covering the cost of the valuation themselves.
 
Ulster Bank I think are the only ones that cover the cost of the valuation? For any of the rest of them I've had to pay between 135 - 150 and either pick a valuer from the bank's list or they took care of it.
 
EBS covered it for us about 4 years ago. 2 years ago yes Ulster Bank covered it also.
 
EthanIsHere said:
thanks all. When should I instruct the valuers? I'm using a mortgage broker and the mortgage application is still in processing
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Talk to your mortgage broker who will have the specific details relating to your lender.

You haven't said who the lender is, and as you can see from the mixed responses above, it varies by lender.
 
Thanks all for the feedback. I got the point and will have to talk to my lender once I get there. For now I am still in the process of finding a mortgage lender so It might be too early stage to instruct a bank valuer
 
All my property buying transactions have been with AIB. They don't pay for valuations. Despite my protestations and (insincere) threat to go with another lender.
 
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