What Is A Kerbside Valuation?

What is a kerbside valuation?

A kerbside valuation, also known as a “drive-by valuation,” is a method used by banks and lenders to estimate the value of a property by inspecting its exterior and surrounding neighborhood from the street. This valuation type is more detailed and accurate than a desktop valuation but less comprehensive than a full property valuation. They are commonly used to confirm the condition of a property when the risk is deemed minimal, such as in cases where the Loan-to-Value Ratio (LVR) is below 80%, or when historical property data supports the valuation.

This valuation method is one of three main ways banks assess property value:

• Desktop Valuation: Fully remote, relying solely on property data and market trends.
• Kerbside Valuation: Involves a physical inspection of the property’s exterior.
• Full Valuation: A thorough internal and external inspection.

Kindly contact us on 1300 889 743 or complete our short free assessment form and we’re usually able to get a free upfront valuation for your property.

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How does a kerbside valuation work?

During a kerbside valuation, a certified valuer physically visits the property to inspect it from the outside, typically standing at the curb or even driving past. The process involves:

• Taking photographs of the property’s exterior to assess its condition.
• Reviewing how well the property aligns with neighboring homes in terms of style, upkeep, and value.
• Analysing location-specific factors, such as neighborhood trends, zoning maps, and proximity to amenities.
• Considering recent property sales, local market trends, and property listings in the area.

Since the valuer does not enter the property, they rely heavily on external observations and available market data to estimate the property’s worth. This makes it a faster and cheaper alternative to a full valuation while providing more context than a purely data-driven desktop valuation.

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When is a kerbside valuation used?

A kerbside valuation is commonly utilised in situations where a detailed internal inspection is unnecessary, including:

• Refinancing: If you’re refinancing and have substantial equity in your property, lenders may accept a kerbside valuation to proceed with your loan application.
• Cashing Out Equity: For releasing equity up to 80% of the property’s value, especially when house prices have remained stable in your area.
• Low-Risk Loans: If your Loan-to-Value Ratio (LVR) is less than 80%, banks may prefer this faster and more economical valuation.
• Tenanted Properties: When the valuer does not have access to the interior of the property, often in cases of rental or tenanted homes.
• Older or Unrenovated Properties: If your property is aging or hasn’t been recently upgraded, a kerbside valuation may suffice for loan processing.
• Quick Valuation Needs: When there’s sufficient historical and market data about the property and location, this type of valuation is often adequate.

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What are the advantages of kerbside valuation?

Kerbside valuations offer several advantages:

• Affordability: They are cheaper than full valuations, typically costing between $100 and $120. This is particularly useful for cost-conscious property owners.
• Speed: A kerbside valuation can be completed in a matter of hours, and reports are often delivered within 24–48 hours, saving you valuable time.
• Reliability: By incorporating a physical inspection of the exterior, kerbside valuations provide a more accurate reflection of the property’s condition than a desktop valuation.
• Convenience: These valuations do not require access to the property’s interior, making them a hassle-free option for occupied or tenanted properties.
• Supports Loan Approval: For low-risk customers, a kerbside valuation can fulfill lender requirements to secure or refinance a mortgage.

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What are the limitations of kerbside valuation?

While kerbside valuations are faster and more economical, they come with notable limitations:

• No Interior Inspection: The valuer does not enter the property, meaning renovations, upgrades, or any issues inside the property go unaccounted for in the valuation.
• Limited Scope: The inspection is restricted to external observations and available data, which may not fully capture the property’s true market value.
• Outdated Sales Data: In some cases, the valuer may rely on historical sales data that does not align with current market conditions (e.g., distress sales or off-market transactions).
• Not Suitable For High-Risk Loans: For properties with a high LVR or in volatile markets, lenders may require a more comprehensive full valuation.
• Short Validity Period: Kerbside valuations are typically valid for up to three months, after which they may need to be redone.

Comparing Desktop, Kerbside, And Full Valuations

Type	Cost	Speed	Inspection Scope	Best For
Desktop Valuation	Low ($50–$100)	Fast (Few Hours)	Data-driven; no physical inspection	Low-risk loans; high data accuracy
Kerbside Valuation	Medium ($100–$120)	Moderate (24–48 Hours)	Exterior only	Low-to-medium risk loans; equity release
Full Valuation	High ($400–$600)	Slow (2–5 Days)	Comprehensive (Interior & Exterior)	High-risk loans; properties with big upgrades

How to get the best valuation on your property?

A property valuation is an important element of your loan application, and getting the best valuation on your property will secure you a better deal on your home loan.

Usually, we can order most types of property valuation at no cost to you!

Please give us a call on 1300 889 743 or complete our short free assessment form to get the best valuation.