Pre-Mortgage Security Property Valuers
Buying a property is a huge commitment that generally results in a mortgage of between 20 and 30 years. Before you take out a mortgage you should be sure that you’re getting a good deal on the property. That is to say that you should confirm that the price you intend to pay for a property is the best possible price.
As part of their home loan approval process lenders require mortgage applicants to get the property they plan to purchase valued. This is because the bank wants to ensure that if the property had to be sold quickly in the event that you defaulted on your loan, they could quickly sell it and recover the amount that you borrowed.
If the bank valuation is lower than the purchase price then one of three things will happen:
- You won’t be able to purchase the property because you won’t meet the lender’s requirements.
- You can get an independent valuation which you can present to the bank so you can negotiate your loan terms.
- You may need to source additional funds for the deposit to complete the purchase if the difference has a substantial difference on the LVR.
Valuations QLD is an independent property valuer that has been in the valuation sector since 1997. Our team of Valuers are Certified Practising Valuers who have been accredited by the Australian Property Institute (API). They all adhere to the API’s Code of Professional Practice, Code of Ethics and Rules of Conduct. As a market leader we are always giving our Valuers opportunities to participate in professional development programs to improve their skills and therefore deliver better service to you.
What does a valuer consider when valuing a property?
There are three types of valuers that a valuer can opt for:
- Desktop valuation.
- Drive by valuation.
- Full valuation.
A desktop valuation is exactly how it sounds. It is a valuation that has been completed automatically be a computer sing available property data including recent comparable sales and current property listings. This type of valuation is normally conducted by lenders when they are assessing a low-risk loan. It normally only includes a couple of external and street photographs. It is generally a couple of pages only. Desktop valuations tend to be unreliable because they may not take into consideration the property’s unique features or recent sale data.
A kerbside valuation is generally used alongside a desktop valuation however the valuer will inspect the property from the exterior to check the condition. They will also take photographs of the property from the street. This type of valuation is used when the LVR is lower than 80% of the property value or when there is accurate property data available.
The above valuations don’t take into consideration the internal characteristics of a property so if you’re unhappy with a bank valuation you should order a full valuation. When Valuations QLD completes a valuation report they will assess:
Why you need a pre mortgage valuation
A pre mortgage valuation is essential to avoid disappointment when you’re purchasing a property. There would be nothing worse than finding your dream home and then discovering that you can’t buy it because the value came under the purchase price affecting the LVR. If you have a substantial deposit that won’t matter, however if you have a low deposit then it could affect whether or not you can purchase the property.
If the bank’s valuation was lower than your intended purchase price then an independent valuation could give you leverage when negotiating either the terms of the mortgage or the purchase price. This is because an independent valuation is typically higher than a bank valuation. It’s based on the ideal selling conditions rather than the worst-case scenario.
Why choose Valuations QLD?
Valuations QLD are not affiliated with real estate agents or banks and have no interest in supplying a low or high valuation. We have an established reputation of providing high quality and accurate valuations so you can trust that the valuation you receive from us is an accurate indication of what your property is worth on the free market. We aim to inspect your property within 48 hours of your enquiry and will then complete your valuation report within 3-5 business days.
If you’d like to arrange a pre-mortgage valuation then give our friendly team a call on (07) 3067 2393.