What Is A Desktop Valuation? Is It Reliable?

What is a desktop valuation?

A desktop valuation is an automated computer valuation done using property data, recent comparable sales and property listings.

As the name suggests, the valuation of the property can be estimated from a desk; without needing a valuer to physically visit the property.

It is:

  • Automated.
  • Instant.
  • Typically uses RP Data (Core Logic).
  • 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.

Here’s what a desktop valuation report looks like.

How do banks value your property?

There are three main ways banks value your property:

  • Desktop valuation or an Automated Valuation Model (AVM) report from a data provider like Core Logic.
  • Kerbside valuation wherein, a valuer parks outside your property and values your property from the kerb.
  • Full valuation wherein, a certified valuer visits your property to carry out a full valuation.

All of the above valuations can usually be ordered through us free of cost.

Can I use desktop valuation for my loan?

It is only used by a few lenders for low-risk loans.

  • Typically for loans less than 80% of the property value (80% LVR).
  • Not all properties have a reliable result for a desktop valuation.
  • Not available for construction loans.

Contact us on 1300 889 743 or fill in our online assessment form if you’d like to use desktop valuation for your home loan.

Is a desktop valuation reliable?

Sometimes yes and sometimes no; primarily because it makes a few assumptions such as there being enough data and the property being in a reasonable condition.

When is a desktop valuation reliable?

It is considered reliable when:

  • The property in question has been sold in the last 10 years.
  • The property is in reasonable conditions.
  • The property has not been substantially changed since 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 unreliable?

It is considered unreliable and a full valuation will need to be ordered if:

  • The property was last sold 20+ years ago.
  • A desktop valuation won’t take any renovations into account, in these cases, the valuation may come in lower than a full valuation.
  • The property is unusual e.g. 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.

Can I request the type of valuation that I want?

No, the lender decides this, however, you can choose the lender.

If a desktop valuation comes in low, you can request the lender to do a full valuation.

Can I challenge a desktop 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 likely they will use the same provider such as RP Data 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 online assessment form.

Frequently Asked Questions(FAQs)

How long is a desktop valuation valid for?

It is typically only valid for 90 days whereas, a full valuation is usually valid for up to 3-6 months.

How long does it take?

It is instant.

How much does it cost?

It is typically free if you order the valuation through us.

However, if you’re looking to order one, it can cost anywhere between $75 and $200.

Luckily, you can also get a free property report with decent data from a few major bank’s website such as ANZ and CBA.

How do I order one?

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.

What if the desktop valuation comes in low?

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 online assessment form for an upfront valuation.