What Is A Kerbside Valuation?

What is a kerbside valuation?

A kerbside valuation is typically used in tandem with a desktop valuation to check the condition of a property for a more accurate valuation while also being cheaper than a full valuation.

It is mostly used for low-risk loans where a valuer simply inspects the exterior of the property from the street and does not enter the property premises.

That is why it is also known as a drive-by or drive-past valuation.

The main objective for doing a kerbside valuation is to inspect a property when refinancing or cashing out equity up to 80% of the property value where house prices have not fluctuated heavily.

It is one of three main ways banks value a property:

• Desktop valuation
• Kerbside valuation
• Full valuation

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.

How does a kerbside valuation work?

With this method, a valuer visits the property, takes photographs and has a cursory look at the property and the neighbourhood.

In addition, the valuer will also look at how consistent the property is with the rest of the surrounding properties in the area.

This provides a rough estimate of how much the property is worth, taking into account the exterior of the property and its location.

It also takes into account other factors like property listings, zoning maps, recent property sales, etc.

When is a kerbside valuation used?

A kerbside valuation or drive-by valuation is usually ordered:

• If a valuer does not have access to the property, especially in cases of tenanted property.
• If your property is old or run down, and has not been renovated recently.
• If the loan to value ratio (LVR) is less than 80% of the property value.
• If you’re going for a remortgage, and you have a lot of equity in your property.
• If you need a quick release of equity to invest in property or shares.
• If there is sufficient and accurate market data about the property.

What are the advantages of kerbside valuation?

There are many benefits of going for a kerbside valuation.

• It assures that a property is in good condition. This would not be possible with a desktop valuation or AVM, which only factors in historical data.
• It is quicker than a full valuation.
• It is cheaper. You can save anywhere between $100 and $400 compared to a full valuation.
• It is more detailed and reliable than a desktop valuation.

However, there are some limitations to kerbside valuation.

What are the limitations of kerbside valuation?

The major downside is that the valuer never sets foot inside your property!

• Since a full and detailed inspection of the property’s interior is not done, then any recent renovation/improvements done on the property is not reflected in the valuation as the valuer does not see it.
• The valuer could be looking at sale price data that is not in line with current market conditions (off-market sale, distress sale, etc).
• This method of valuation is slowly being phased out in favour of desktop valuation, AVMs and full valuation.

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.