I was speaking with a finance broker last week and he was telling me a story about one of his clients who purchased a property for $661,000. Ok, so there’s nothing unusual about that but here's where it gets interesting. The finance broker knew the area as he lived close by and thought that $661,000 was a lot for a two bedroom apartment in that location so it must be something special. As per standard practice the bank ordered a valuation which came in at $661,000 (the purchase price). This surprised him as he was sure the valuation was going to come in well below that figure.
