Bank Valuation vs asking price

Would love to hear from others that bought a flat:house and others that went through the process.

Did the bank value the property at same level of asking price?

And what was the premium / discount %?

Thanks all!

it often dont match.

Banks have a hedonic regression model to calcolate the price of real estate. It depends on location and cicumstances, but the differences can be (and often are) huge.

where do you plan to buy?

I’m far from buying real estate in Switzerland but work in the industry.

Unless you want to buy dead in the middle of nowhere, you should probably forget about getting a discount.

Most sellers will obtain a first indication of where to put a realistic asking price using the same tools the banks use - typically through a real estate agent or their bank. The underlying models look backward and are more or less conservative, depending on whether they use public offered-price (i.e. asking-price) or transaction-price data.

The consequences: 1) you will most likely need to pay considerably above asking, and 2) you will need to have that difference ready in cash because the bank is not going to finance it.

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In our case (from this year), bank’s estimation was ~99.34 % of the price we finally had to pay to the owner.

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Thank you!

Was looking in the silver coast.

Online tools are very broad with asking price at the top of that range. Bank valued at -15%. Considering closing the gap at -3%

Different banks also have different valuations. For a house priced at 1M I got valuations ranging from 750k to 1.2M

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