As per the topic in general.

In specific:

Normally, the financial institution you chose to apply for loan will send a valuator to gauge the value of the said property before the loan is approved. But still, if you haven't any bank yet, you should be able to go to any valuator to ask them value the property provided you have the adequate information & willing to pay them.

Yes, currently I am engaging a banker to do the job.

I believe that the prices advertised are speculative prices - and newbies like me will be given a false impression on the "market value" when everyone is putting their prices much higher than it should be.

A valuator can be provided by the seller or you can appoint yourself

The unit is condo or apartment???
what is the down payment u want to pay?
for the living purpose or investment?

assume ur downpayment is 50k, loan for 20 years, and interest rate is 4% then ur monthly payment should be 1211.96, which is means if u are investing and the rental must be above 1211 in order to generate rental profit.

star classifieds in the fastest route. Just use asking price minus 10% to be concervative, its quite accurate.

Buy before prices go up again.

I totally agreed. If you're investing just call for lower price. You may get the house even the price at rm220k

Indeed this is the fastest way without involving other parties but again, as I mentioned in Post #3. The prices advertised are much higher and sometimes may not justify the real values of the units.

How accurate is 10% minus? Note: I do agree that 10% is a fair deduction from asking price.

PS: Given my case of RM250K - minus 10% = RM225K (RM25K reduction). I do not think the owner will comply with this
From friends' feedback, I may possibly get a 10K-13K reduction the max.

This post has been edited by kimhoong: Mar 2 2009, 12:22 PM

Its not perfect but it gives you a rough indication only.

You'll get 100% accuracy upon getting the valution done.

I do agree that the classifieds are a good place to start on potential "transacted values".

Yes, it's a fairly good assumption that transacted values are your market values.

However, IMO - the best way to get a good gauge on market values is to get a verbal indication from a professional valuer. e.g. TD Aziz or VPC. Of course it helps if u have some contacts there. If not, do it the old fashioned way - call them up and "make friends".

The verbal indication from the valuer is the basis of your banker determining your loan amount in your LO. Of course, your loan amount is still subject to a proper valuation later.....But most of the time - the actual valuation won't run far from the verbal indication.

Long story short, I use classifieds to hunt for deals which I want. But, I use verbal indications to determine the closest estimate to market values. It's more accurate than your Classifieds.

This post has been edited by Phoeni_142: Mar 3 2009, 01:57 AM

Ask the agents around that area.
They know the market better than banks which includes rent for FF, PF and NF.

Well, avoid unscrupluous agents.....But if u can find an agent with integrity - I agree that this person is an asset to your growing real estate portfolio.

Unfortunately, banks don't listen to agents. They will still abide to the valuation given by professional valuers. I presume most of us would take loans for property investment / purchase.

Which concludes that there are two prices in an unit:

1) Bank's valuation (based on actual figures)
2) Owner's/Agent's valuation (based on experience and "trends")

Agree?

If yes, which value do you use to "nego" with the owner (for a 2nd hand property)

Yup, there are only agents want to put food on their table.
Find one that puts food on his table as well as mine.

A good agents who close lot's of deal in that area, some work very closely with a bank and help the buyer on the finance. They know the market, bank that deal with them knows the pricing of that area too.

Some banks don't finance that particuliar area a lot, hence very hard for a valuation on sales price.
Sometimes a valuer is needed.
I remember someone mention go to a local branch of that area, would able to get the valuation price.

agents r vested, so more often than not I use to discount whatever rental or sale value they say........

Valuers r a funny bunch, one can say the property worth 140k, while the other can say its worth 220k for the very same property.

So use the comedians to your advantage.....if u know what I mean.