Bank's valuation and cost?

Posted Sunday, 11 September 2011 at 15:47 by Michael Chan
Read more blogs...

 

 

What is a Bank’s valuation and cost?

 

Bank’s valuation

 

A valuation organized by the bank does NOT reflect how much your property will sell for; in fact it’s common to see a 5-10% difference in selling price and the valuation itself.

End of the day the bank’s valuation is for the BANKS purposes only.

 

There are three (3) types of valuations:

 

1. Desktop valuation – Where a bank staff does a search online and using property software such as the one offered by  RP-Data, PriceFinder and APM.

2. Kerbside valuation – One of the banks panel of registered valuer is assigned to drive past the property and take note + do a desktop valuation.

3. Full valuation- One of the banks panel of registered valuer is to access the property and take note.

 

 

You can not choose the type of valuation you want , the bank will advise which valuation type they prefer based on the deal.

But generally speaking a full valuation is the most common type (79% of all applications **2009-2010)

 

 

What is the purpose of a Bank’s valuation?

 

It is to protect the bank’s asset ( Your property) and to make sure they can recover the debt/mortgage should you default on your loan.

 

How much does a Bank’s valuation cost?

 

It depends on the bank, the product your on and the type of valuation ordered. From time to time there are promotion running for free valuation

OR sometimes the bank is willing to absorb the cost to win the business; so speak to us for an update.

 

Pricing/promotion as of Saturday 11/9/2011 ( Kerb side/ Full valuation)

 

*** Some banks will provide a free valuation for existing clients- check with us first ***

 

 

 

 

      -ANZ –

Cost:  Free for the first one.

Note: If client is part of the Break-free package, then they are entitled to three (3) free valuations per year.

 

 

 

 

 

 

 

 

 

      -St George –

 

Cost: $250 ( But first one free, as part of application fee)

Note: $270 for Rural area or unique security.

 

 

 

 

 

 

 

 

 

     

                                               

 

 

 

                                     -WideBay Lending –  

 

Cost: $220

Note: $270 for Rural area or unique security.

$270 for Rural area or unique security.

 

                                

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      -CBA –

 

Cost: $199 (But first one free, as part of new lending application fee)

Note: For existing security, if LVR is under 80% and you’re requesting a top up loan of around $35,000 or under, then a free desktop valuation will be sufficient.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      -NAB

 

 

 

 

Cost: $250 ( Waived for existing clients)

Note: If LVR is under 70%, a valuation may not be required and the sale price is accepted as the valuation price.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      -Home Side –

 

Cost: Free

Note: Free, Via the broker channel only.

 

                                               

 

 

 

 

 

"