Property valuation is an essential part of the Home Loan application process. In order to help, we’re going to tell you what factors are taken into account when valuing your property.

Valuations are used to determine the security value of a property being offered to secure a Home Loan. A valuation needs to be carried out when you borrow to buy a new property, when refinancing, or when you want to access the equity in your home.

We will consider a number of factors to determine the type of property valuation required. In some cases, a licensed property valuer will be brought in to complete a valuation on our behalf.

To assess a property’s value, a valuer will measure the property, record details on the number and type of rooms, along with fixtures, fittings and any improvements. A property’s unique attributes will also be taken into account, such as:

  • Location
  • Building structure and its condition
  • Building/structural faults
  • Standard of presentation and fit-out
  • Planning restrictions and local council zoning

The valuer combines these attributes together with recent comparable sales in the surrounding area and prevailing market conditions to produce a valuation report.

Valuations should not be confused with appraisals carried out by real estate agents. A licensed valuer must base their opinion on hard evidence and take legal responsibility for any information they provide. Estate agents are acting for the vendor and are rewarded for getting the highest price for a property.

Also keep in mind that the cost to build a property or the asking price doesn’t necessarily equate to value. It is easy to over-capitalise in real estate or be drawn in by a seller who is pitching their property above the market price.

As part of the application process, we will advise you if your property requires a valuation.