With the loan approval on the property we're living in now, the bank sent out their property valuer and he valued the property at $220,000. We had offered & had accepted an offer of $218,000 so the bank approved the loan but we found out through the real estate agent that the owners had originally been refusing to accept less than $235,000 but all the other offers had fallen through as the banks weren't approving the loans because they were paying more than the property was worth and with property prices falling the bank needs to be able to sell the house for more than you've borrowed in order to make it viable for them to lend you the money incase you default on the loan.