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Valuation Report – How Detailed Is It?

A Valuation Report on a property is typically arranged by a Bank or Building Society when they are considering giving a mortgage. The main aspect of the report is to let the lender know the value of the property in question and to make sure that the mortgage being asked for is suitable. However, it does not involve a meticulous inspection of the property.  It is a basic report and lacks the detail of the Homebuyer Report. However, it is essential as legally, building societies are obliged to carry out these valuations before making a mortgage offer.

Essentially, a Valuation Report is a survey commissioned by the lender (whether it is a bank or building society) in order to assess the current value of a property. This report does not go into much depth; it is not a structural survey of the property and does not give information about the state it is in. You will still need to have other surveys carried out on the property no doubt.

It is important for you and your mortgage lender to know whether the property is really worth the amount of money you are willing to spend on it. The surveyor will arrive at a value by comparing the property in question to similar ones. They will of course factor in the age of the property as well as the condition and location. Although the survey is a limited one, it will still take into consideration any problems with the property that might affect its value. If your lender’s valuation is less than the asking price, it is likely that you will have to pull out of the deal if you cannot get the seller to reduce the price or if you are not able to come up with more cash.

According to the BBC; “Most experts insist extensive surveys offer peace of mind, yet just one in five buyers choose one that goes beyond the basic mortgage valuation survey”. It is very important to note that the Valuation Report does not give any detailed information and should never be used on its own in assessing a property’s condition and value.

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