As the name suggests, the valuation of the property can be estimated from a desk; without needing a valuer to physically visit the property.
- Typically done using RP Data (CoreLogic)
- Used by lenders for low-risk loans (loans under 80% Loan-To-Value Ratio); there are lender(s) on our panel who might accept desktop valuations for up to 90% of the property value, however, there are postcode restrictions.
- Cheaper than a full valuation
Desktop Valuation Example
Here’s what a desktop valuation report looks like.
Can I Use A Desktop Valuation For My Loan?
Yes, you can. But it is only used by a few lenders and for low-risk loans.
- Typically for loans less than 80% of the property value (80% LVR).
- Not all properties give a reliable result from a desktop valuation.
- Not available for construction loans.
Contact us on 1300 889 743 or fill in our free online assessment form if you’d like to use a desktop valuation for your home loan.
How Do Banks Value Your Property?
There are three main ways banks value your property:
- A desktop valuation or an Automated Valuation Model (AVM) report from a data provider like CoreLogic.
- A kerbside valuation wherein, a valuer parks outside your property and values your property from the kerb.
- A full valuation wherein a certified valuer visits your property to carry out a thorough valuation.
All of the above valuations can usually be ordered through Home Loan Experts free of cost.
Are Desktop Valuations Accurate?
Yes, they are usually accurate. When lenders order a desktop valuation, there are a few assumptions made, such as having enough data to compare and the property being in a reasonable condition.
When Is A Desktop Valuation Accurate?
It is considered reliable when:
- The property in question has been sold in the last 10 years.
- The property is in reasonable condition.
- The property has not been substantially changed since the last sale (built, subdivided, renovated etc).
- The property is relatively standard (normal size, normal building).
- There are many similar properties sold or listed in the local area.
When Is A Desktop Valuation Not Accurate?
It is considered unreliable and a full valuation will need to be ordered if:
- The property was last sold 20+ years ago.
- There are renovations that need to be taken into account; in such cases, the valuation may come in lower than a full valuation.
- The property is unusual for example, if its best use is as a development site, it has a granny flat at the back or is a display home.
- There are few local sales available for comparison.
The computer models used to calculate the property value also provide a risk analysis. It tells the lender how much to trust the figure reached.
If the electronic valuation report’s risk score is too high, a lender may order a full valuation instead.
If a full valuation is required for your home loan, we can usually order a free upfront valuation with most of our lenders.
Frequently Asked Questions(FAQs)
You can go to CoreLogic’s EVR (electronic valuation report) website, input the address, contact details and a credit card number for the invoice to get a report. Most lenders use CoreLogic data.
Alternatively, we can order a desktop valuation for you at no extra cost to you.
If a desktop valuation comes in lower than expected, our mortgage brokers will first assess your situation and work out if we can order a full upfront valuation for you.
Then we’ll order up to a maximum of two or three valuations with banks and lenders that we think you’ll qualify with for a mortgage.
Please note that we’ll order valuations only for serious customers looking to lodge an application.
Give us a call on 1300 889 743 or fill in our free online assessment form for an upfront valuation.
No, the lender decides this, however, you can choose the lender.
If a desktop valuation comes in low, you can request that the lender to do a full valuation.
No, however, you can apply with another lender instead.
If they do a desktop valuation, it will likely be based on the same data, and they will likely use the same provider such, as CoreLogic to do it. The end result will probably be the same.
So, it’s best to go with another lender and order a full valuation.
To find out which banks will give the best valuation for your property, give us a call on 1300 889 743 or fill in our free online assessment form.
Need A Property Valuation?
Getting a property valuation is an important part of your home loan application process. At Home Loan Experts, we can order most types of property valuations for free. Call us on 1300 889 743 or complete our free online assessment form to get the best valuation.