Buying property requires valuations to be completed before the lender will provide unconditional loan approval. The ‘bank valuation’ (as opposed to a ‘real estate valuation’) will be completed in one of three different ways.
A lender may arrange for a valuation to be completed on your property either by a; desktop, kerbside and full valuation but what’s the difference between them all?
Desktop valuations are done by the lender themselves using the median price of the suburb combined with median security. No inspection of the property is done. Generally this type of valuation is usually only utilised for properties in capital cities where the LVR is low.
Kerbside valuations involve someone inspecting the property from the kerb on the street. Generally speaking when the property and estimated value amount is median to the suburb, no lenders mortgage insurance is required and there is a contract of sale a kerbside valuation may be used to confirm the property value.
Full valuations are just that, an independent qualified valuer from a third party valuation company is engaged by the lender to inspect the property and issue a written report complete with pictures and measurements. The written report will reference comparable properties that have sold in the area and are comparable to the property being valued. This is the most common and widely used form of valuation but it does take time to be completed and can be delayed depending on how difficult it is for the valuer to gain access to the property.