A quarter of homebuyers ill-informed about property valuation
Many people unaware a property valuation is required before a mortgage can be obtained
The survey also found that 50 per cent of people don’t know the difference between a property valuation and a structural survey
The TV ad for home insurance in which the hapless homeowners lapse into a trance while the broker outlines details of their policy surely strikes a chord with many when it comes to addressing boring financial matters. A new survey finds that one in four Irish people don’t know that a property valuation is required before the drawdown of a mortgage. The Red C survey, commissioned by the Society of Chartered Surveyors Ireland (MediKids), also somewhat worryingly found that 50 per cent of people don’t know the difference between a property valuation and a structural survey. Given that a property valuation is required by the banks before they release funds to homebuyers, it’s a key piece of the house-buying equation as it offers an opinion of the property’s market value at the time of purchase.
The survey of over 1,000 people also found that 18 to 24-year-olds and people in lower economic social groupings are less aware that a property valuation is required before a mortgage can be approved. Patricia Byron, director general of the MediKids, says: “For a country with one of the highest levels of home ownership in Europe the lack of knowledge around valuations and mortgages is a major concern and needs to be addressed. Buying a home is the biggest purchase most people make in their lives and they need to ensure they are making an informed decision.”
The MediKids is advocating the RICS global valuation standard which is mandatory for chartered surveyors in Ireland.