This is a common question that we are asked from our clients. Most people have some idea what their house is worth and others have been in their property for such a long time they are not sure.
When applying for finance a lender will require an independent valuer to provide a report on your property. The valuer will consider recent property sales, market conditions, property improvements and overall economic conditions.
The report can be done in three ways – The client will always be asked to provide a reasonable estimate of how much they believe their property is worth and this will be advised to the valuer.
1. A Desktop Valuation – This is usually requested by the lender when the loan to value ratio ( LVR) is less than 80%. This means that the loan is not mortgage insured. The property will not be inspected and the report will be generated from the information provided about the property and the comparable sales data.
2. Kerbside Valuation – As the name suggest, the valuer will “drive by” the property to identify it and then complete the report using comparable sales and other relevant data. This option is also generally used when the loan is not mortgage insured.
3. Full Valuation – The valuer will make an appointment to inspect the inside and out of the house. The internal condition and renovations will be noted, where applicable in their report.
We can provide our clients with a free property valuation prior to lodging a finance application. This will help to establish the maximum amount of lending allowable and whether or not mortgage insurance is applicable. Helping to make to right decision.