Value of the house, discrepancy between appraiser/bank!

The value of my semi-detached house was estimated by an appraiser at 250T€, a bank has set the value of the house at 176T€. In this respect, there is a discrepancy of about 30% - I assume this is the bank's safety margin. After the expiration of my 10-year fixed interest period, I require a follow-up financing of about 90T€. These 90T€ are more than 50% of the house value according to the bank, but well under 50% according to the appraiser. Is it to be expected that the lower valuation by the bank will lead to a higher interest rate?

Best regards
Karl

Hello Watteau

just take a loan of 86,000 euros. Then you are at 49% financing.
Provided the bank makes a difference there.
The interest rate should be close to 1%.

Steven

Is it to be assumed that the lower valuation by the bank leads to a higher interest rate?

Yes!

The value of my semi-detached house was estimated by an appraiser at 250K€

Mortgage lending value or market value? Who commissioned the appraiser?

a bank set the value of the house at 176K€

Mortgage lending value or market value?

In this respect there is a discrepancy of about 30%

Probably not, since different values were calculated (I assume).

"..The value of my semi-detached house was estimated by an appraiser at €250,000..",

Mortgage lending value or market value? Who commissioned the appraiser?

Market value, I commissioned the appraiser myself (sworn expert). I wanted to find out the correct value in order to compare it with the bank information.

Market value, I commissioned the appraiser myself (sworn expert)

Well, then the appraiser will determine a value that suits you Depending on who commissions the appraiser, different values are often obtained. They are all formally correct, because there is no ONE value of the house. I see this regularly when my clients come to me with their own appraisals.

Wanted to find out the correct value in order to compare it with the bank's information.

Both values are correct. However, for the bank, the important value is the lending value. You did not have that determined. And there can also be significant deviations there (remaining useful life, equipment, capitalization rate, etc.)

If the loan defaults, the bank puts the property up for foreclosure, with you or you all involved. If it then fetches 170, they can consider themselves lucky. In foreclosure, such things often go for under 100.