The process of having supervisors review the property appraisal created by the bank’s appraiser based on a local survey and the bank’s methodology is called property value supervision. What is the purpose of the whole process of supervising the property appraisal?
Why a property valuation is important
In order for a bank to provide you with finance to buy (renovate) a property secured by a mortgage, it needs to know its valuation. This is prepared by the bank’s valuers and is an integral part of the process that leads to obtaining a mortgage loan. Did you know that the estimate also affects how much the bank will actually lend you?
The final decision on whether the property is a suitable object for pledge to the bank will be made by the supervisors, who will not only check the market price of the property, but also determine the replacement price of the property or its future value.
Did you know that supervisors can adjust the appraisal price, both upward and downward?