***** property valuations

<p>The ABSA replacement value for a property we were approved for is R3.2million vs the valuation from Nedbank of R2.2million and Standard Bank R1.6million. The purchase price is R1.5million. While the smallholding only has an electrified fence surrounding it (replacement value of abou R300/m), the lowest cost fence on their valuation spreadsheet is a palisade fence at R1700/m. Other items on their spreadsheet is also way over market value. After a re-evaluation was done and our concerns were communicated to ABSA, they have decided to stick to the R3.2million. If other banks gave a similar valuation for the property it could be understood, but if two other banks came in closer to market value, it shows the valuations of ABSA are ***** and they are forcing thousands of customers to over-insure properties at the benefit of the insurance industry only, because a claim on an over-insured property will only result in a lower payout.</p> <p> </p> <p>ABSA is offering the best bond rate on the property, but to be forced to over insure a property by more than R1million is *********. Yes, we can take a bond with another bank, but it would not change the fact that thousands of customers are forced to be over-insured. This is an *********, irresponsible practice.</p>