There are several types of property valuations, including:
- An automated price estimate
- Appraisals and privately ordered valuations
- Bank valuations
Automated price estimate
An automated price estimate is a way to quickly gauge a property’s estimated market price. It can be useful when starting to think about buying property in certain areas or getting an idea of what your current property might be worth. You can get estimate market prices1 through the CommBank property app. These estimates are not reviewed as part of home loan applications.
Appraisals and privately ordered valuations
Home owners and sellers can also approach a real estate agent for an appraisal, or a valuer for a privately ordered valuation of their property at any time. Privately ordered valuations are not used by banks when making lending decisions, but can provide a guide as to the estimated market value.
Typically, a valuer will look at things including:
- Size of the property
- Number and type of rooms
- Fixtures and fittings
- Areas for improvement
- Building structure and condition (including faults)
- Standard of presentation and fit-out
- Ease of access, such as good vehicle access and a garage
- Planning and restrictions and local council zoning
- Recent sales in the area and other market conditions
Bank valuations are used to determine the loan-to-value ratio in a home loan application and will impact the amount that a bank is willing to lend. Bank valuations are for mortgage purposes only, so you shouldn’t rely on them for any other purpose.
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