A valuation is a vital and important step in getting a loan application. Why is it so important? the Bank or Lender will use the valuation value and report comments to determine if the property can be used as security and how much of the value can be used. It is for this reason I highly recommend knowing what type of valuation is being used to assess your property’s value and what you can do to ensure your property gets the highest value available.
In this blog I will go over what the different types of Valuations that are available however be sure to stay tuned for the next blog which lists what you can do, depending on the valuation type to increase the overall value depending on the type of valuation you need.
1. Automated Valuation
An Automated valuation is using a website such as RP Data to get a basic estimate on your property. This Property report takes recent sales in the same area, for like properties and gives you a price range your property may fall into. It is only in rare cases the Automated Valuation can be used to determine the value of your property as the price range us generally quite large (up to $100k) and therefore not as reliable as other Valuation types.
2. Desk top Valuation
This Valuation is very similar to an Automated valuation however the Valuer will compose this report for the Lender/Bank and the report will have a lower price range and therefore be more accurate for a Lender/Bank. Generally, you find these valuations are used when the property value is high and the loan amount is low so even if the valuation is slightly off there is still little risk for the Lender/Bank.
3. Kerbside Valuation
A Kerbside valuation is exactly what it sounds like. The Valuer will use reporting similar to a Desk Top Valuation to determine the value of the property however they will also drive to the property and assess it from the street to complete the remaining of the value. In most cases the Kerbside valuation is used when the property is a Vacant block rather than a house and land.
4. Short Form Valuation
A short form Valuaiton is the most common type of valuation and this is where as a home owner you have the biggest opportunity to increase the value of your property. A Short Form Valuation is when the Valuer will physically visit the property, walk around the outside of the property and the inside taking note of the condition, the street appeal, even if there is evidence of Termites or structural damage. Once they have visited the property the Valuer will return to the office and complete the report based on what they saw as well as what the Data is saying in relation to recent sales etc.
5. As if Complete Valuation
This Valuaiton is only used if you are looking to complete renovations on your property or build a brand-new property. An as if complete Valuation is where the Valuer is given all the details about the build or renovation right down to the type of light fixtures that will be used and they then use current market reports as well as the information provided about the build to establish what the value of the property will be worth once it is complete.
As you can see there are so many different Valuation types and there are things you can do to ensure you get the best result possible. I will follow this Blog post up with another one on specific things you can do however if you are interested in getting an Automated valuation on your property now to see what it’s worth please email your property address to info@360mortgagesolutions.com.au.
As always for more information please email at maryanne@360mortgagesolutions.com.au