No question is a silly question. When selling or buying a property, a million questions can go through your head. It is important, therefore, to get sound advice from an expert in real estate who can give you unbiased and clear information based on years of experience.
We received this great question from a client recently: “What is the purpose of a bank’s property evaluation? I don’t feel like they are particularly accurate, do they serve some sort of purpose in regards to your mortgage application?”
At Chamberlain Property Advocates, we believe that answering ALL your questions is an important part of our work because we understand that it can be an overwhelming and nervous time when it comes to buying or selling a home. The following was our response to this good question.
A bank evaluation of a property is generally for the bank to gain an understanding of what the property is worth in the market, mainly for the purpose of granting you a loan.
When you want to buy a property, the bank will do a bank valuation. Each bank has a panel of valuers that they consult for this purpose. The bank will then send out a certified valuer from whichever firm they are using, and compare the home you are buying to recent sales in your area.
Valuations can be from a desktop (from a computer), kerbside (from their car without entering the property) or it could be a full valuation (full access to the property). Their criteria for this is based on the suburb, risk factors, type of home and overall value. Most are a full valuation, although they do sometimes get away with kerbside or desktop valuations. Most banks do valuations as a matter of course before they approve a loan for a customer.
The valuations offered for free by a bank, for their customers, is a similar service to evaluations for a mortgage, but is more about giving you an idea of your property value, which can then be used by the owner to get a better understanding of what their home is worth. Most banks offer one free valuation every 12 months to their customers, depending on the banking package that the customer has, for example, ANZ offer this service as part of their Breakfree banking package.
To reiterate, most valuations are conservative, but it does give you a ball park figure of the price of your home. Having said that, a local agent, who is active in the area, is going to have a far better idea of the value of your home. The banks rely mainly on the estimations of the valuers from their own panel. It is this estimation that the bank will base any decision on. Don’t forget, you can ask for a second valuation to be done if you feel the first one is way off the mark.
If you have questions about the market and are thinking of buying or selling your home this year, get in touch with us. We also offer a range of other services such as bidding at auction and styling your home, to name a few. Take advantage of our FREE, no obligation, 30 minute phone consultation. Click here to book a chat.
Looking to buy in Melbourne and sick of missing out at auction? Talk to me about how I can help you buy your new home faster, for less.
Ask about our Home Buyer Search and Acquisition Service, where we do all of the legwork on your behalf to MAKE IT EASY to secure your new home.
To book a free 30-minute consultation, simply click here and choose a time convenient to you. Alternatively, give me a call on 03 9686 2288 to discuss how I can help.
Give me a call on 03 9686 2288 to discuss how I can help. I offer a free consultation, so why not call today?
By Wendy Chamberlain
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With a passion for all things real estate spanning 20 years, Wendy loves that her role as a Buyers and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.
