A valuation is an independent report of the value of a property, and may include some commentary regarding the condition or features. It is used by the bank to determine whether the property is acceptable to them, and how much they will lend against it.
Your Broker, or the bank, will order a valuation when you are purchasing a new property or refinancing your existing property.
💻 Sometimes the bank may allow a computer-based model which uses data available online and compares to similar sales in the area.
🚗 A kerbside valuation is the next step up, where the valuer will drive by the property to view it from the outside.
🏘 A full valuation is conducted when the valuer inspects the internal and external property and writes a full report.
Valuations are often completed at no cost to the borrower, but sometimes a lender might pass on a fee particularly in regional or remote areas where the valuer charges a premium for travel.
It is important to remember the valuations are for use by the bank and do not negate the need for a Pest and Building Report. While Pest and Building Reports are not mandatory, it is highly recommended that you seek advice from a Pest & Building specialist to check for any major structural concerns.
