Valuation Survey (VALS)

  • Lender’s surveys establish a property’s condition and value.
  • This is usually related to the purchase price (PP).
  • If the property is valued above the PP then the PP will be the maximum valuation whatever the real value is worth.
  • If the PP is below the loan requested then the actual value will be stated.
  • This is not the same as a structural survey which is more thorough
  • A survey fee is paid by the borrower to the lender prior to the survey.  The surveyor is paid by the lender (significantly less than the lender receives).
  • The valuation can be to determine the likely sale-price or rent achievable compared with other local properties of similar specification, amenities and condition and any recent rent or sale agreed.  The more recent the comparable property transaction the more realistic any valuation is likely to be.
  • See AppraisalsComparablesSurveys.

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