Originally Posted by
Blue
Valuation in today's market can differ a lot among different valuers / bankers.
Being conservative, some valuers or HDB only base on most recent transacted price of a similar unit. But if everyone just buy based on that, then property price will not have gone up. It will remain stagnant or move slowly upwards.
So what causes valuation to go up? It is a "dirty" business. Valuers / Bankers will match whatever new launch prices that Developers intend to sell at. But for resale, they look at most recent transacted prices.
Ultimately, the Bankers look at your financial credibility (income & savings) to determine if they want your loan business badly, and also assess the price downside risk => If the benefits outweighs the cons => They will value the property accordingly to match buyer's loan to meet the seller's price expectation.