Dear sifus, would like to ask if it is normal for different bank to give different quotation for a property value? Say for example I am looking to buy a property in outskirt place and the agent is telling me that his banker can get the property value at 900k.However when I submitted loan applications in 2 different banks (not agent’s banker), both banks told me max they can give out is 600k-650k for the same property. Just wondering if this is normal or the agent/banker is marking up the selling price as there’s a 43% difference between agent banker’s quotation and other banks’ quotation.

This post has been edited by cheokchuanyi: May 4 2022, 12:42 AM

Im not sure if u know max loan offered is based on your paying ability, and how many properties u currently have.

In other words, bank thinks u can only afford to pay for 650K value property.

If u aiming for those buy house get cash from housing loan thing don't do it.

When buying a property, there is a different between property price and property loan.

Property price is negotiation between seller buyer. When both agreed on the price, banks cannot say both are right or wrong on the value. Buyer paid the price for the perceived value of the property and so was the seller on the selling price.

That is the reason why some people made profits and some made losses when buying properties.

Property loan is between the bank and borrower. Banks assess borrowers risk based on few factors ... property value, loan amount, borrowers risk, tenure, construction, location etc.

When banks approved a loan today, they are only interested to know whether they can recover the loan sum if borrower default tomorrow.

Buyer cannot tell seller that bank value is RMxxx and he is only willing to pay RMxxx. Any difference between the price and loan have to be topup by the buyer.....and these cases are common in property transactions as no two similar properties will have the same 'value'.

Coming to your question .... if you like the property and assuming you are willing to pay the price for whatever personal reasons, submit the loan through the agent. If is approved, then you decide whether to sign the loan offer letter or otherwise.

Means you are over paying for your prop.

My suggestion is to look elsewhere.

I am referring to the bank’s value.the property agent insist his banker can get the property value at 900k but other banks can quoted the value max at 600k so they only only give out the loan at that value.

Thanks for explaining the difference between property price and value. Perhaps I am not being clear on my question. I am just puzzled that how come property agent banker’s insisting the property is valued at 900k but few other banks told me their valuer can only give a price of RM600k.Are they using different standard when valuing a property?

This post has been edited by cheokchuanyi: May 4 2022, 09:28 AM

Yes this for sure,but I just think that something is not right on the agent and banker.

Where is the property that you’re looking at and how many Sq ft is it?

Some ulu place in NS. Land area 6175 sq feet with built up area 3842 sq feet.

I see, that's really huge! Maybe the valuer based past transaction as it's not really a popular area. Which bank did you looked it?

Or maybe this is your 3rd prop? 70% financing 900 x 70% = 630k

Cheers and all the best

Why?

Nope I am buying for my parents to stay.

U get cash lump-sum but interest is insane

Try few more bank

Until poorperly agent's bank give you letter of offer, is hearsay.

My thoughts exactly

After suffering losses at auctions, some banks no longer allowed developer to dictate new launch value i.e offer loan to valuer's report. hence, there could be substantial different between developer's price and loan.

This post has been edited by icemanfx: May 4 2022, 10:52 PM

Property agents can sometimes promise the sky in order to get you to put down a deposit. By then, it'll be too late if you wanna pull out.

As others has pointed out, its all just hearsay until you see the actual paperwork.