Your offer has been accepted in principle, filled out by you and is on its way to the bank. Before your bond can be granted one important step has to be concluded – the valuation of the property.
Before the bank can grant a bond, they have to first determine whether the property has the market value as stated on the Offer to Purchase. Banks make use Property Valuators to determine this.
It is important to note the following:
- Bank valuators do not look for patent or latent defects. Property value is, in many instances, determined via electronic media systems and registers. In many instances valuators do not even physically go and inspect the property. They use the deeds office statistics and South African Property Transfer Guide (SAPTG) and other industry tools to assess the market value of properties.
- Valuators’ primary duty is thus to determine the value of property and this can be a useful tool for both sellers and buyers alike. If you are in the process of either selling or buying property.
It would be advisable if you have reservation about a specific property which you like, to employ the services of a valuator to assess the value and building quality of that property. What he can or will not do is tell you the state of the roof or the electrical wiring of the property. Valuators could have a lot of suburb knowledge which could assist you to decide on the suburb too.
You have listened to friends and family about the value of your property! What is the correct market related value for your property? The best advice would be to ask an expert. Valuators do this every day, and their criteria are stringent, as it has to be. You don't want to be caught up in a situation where a bond is denied because the bank can not find the value (asking price) of your sold property. Their assessment is based on current market trends and even suburb specifics. Be sure about the value and use the correct qualified person for the job. You will recover the costs of this exercise through the sale of the property.
Myroof can also assist you in bond originating. Why not have a look at what we have to offer?