Get a Free Bank Valuation in Australia
Request a free online property valuation from Dark Horse Financial to gain accurate property insights. Secure the best terms, access equity, and refinance for a better deal with ease.
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What is a Bank Valuation?
A bank valuation is a formal assessment of a property’s value, conducted by an independent valuer on behalf of a bank. It determines the property’s value for lending purposes, allowing the bank to determine how much it’s willing to lend for a mortgage or refinance.
Why Are Bank Valuations Needed?
Bank valuations are an important step when it comes to lending as it benefits both the lender and buyer. It protects the lender’s interests by ensuring the property acts as sufficient security for the loan. Meanwhile, it helps the buyer get an objective measure of a property’s value, helping them secure better financing options.
As a buyer, a bank valuation can help you:
- Access equity for a new investment property
- Negotiate a better deal with your current bank
- Negotiate a better deal through refinancing
- Consolidate debts to reduce rates and fees
Bank Valuation vs Market Value
It’s crucial to understand the difference between a bank valuation and a property’s market value when purchasing a property. Often, they do not match, with bank valuations coming up lower.
- Bank Valuation: An objective estimate of a property’s value based on comparable and historical sales, often used for lending purposes
- Market Value: The estimated price buyers are willing to pay for a property in the current real estate market, often affected by the property’s condition, location, and emotional perspectives
Why Bank Valuation and Purchase Price Can Differ
The purchase price is the amount a buyer agrees to pay for a property, which is influenced by factors like competition, market demand, and emotional attachment. In contrast, a bank valuation is an independent estimate of a property’s value based on comparable sales data.
This means the bank valuation may be lower than the purchase price, particularly in rapidly rising markets or when buyers are willing to pay above market trends to secure a property. However, in most cases banks will accept a contract of sale as setting the value of a property.
How Does the Bank Property Valuation Process Work?
Our online bank valuations are free of charge. An online bank valuation provides a faster, automated estimate of your property’s value using technology and market data. Here’s how it typically works:
- Contact Us: Reach out to our team to request a free bank valuation, and we’ll get back to you promptly.
- Consultation: We’ll discuss key data such as the property’s location and property type.
- Automated Analysis: Algorithms analyse the key data to generate a value estimate.
- Report Generation: You’ll get a quick valuation report, often without the need for a physical inspection.
How Long Does a Bank Valuation Take?
The time for a bank valuation depends on property type, valuation type, and lender processes. Generally:
- Desktop or Automated Valuation: Instant or up to 24 Hours
- Full Valuation for residential properties: 2-3 business days
- Full Valuation for Commercial properties: up to 7 business days
Bank Valuation Criteria in Australia
In Australia, there are several criteria on how to check the bank valuation of a property, including:
- Property Location, Type, Age, and Condition
- Property Improvements
- Comparable Sales Data
- Zoning and Land Use
- Rental Assessment
- Risk Rating
Request Your Free Bank Valuation Today
At Dark Horse Financial, we help you access quick and accurate property valuations free of charge. Whether you’re buying, refinancing, or investing, our team helps you get a free bank valuation outside of the loan process.
Why Choose Us?
- Fast and reliable free bank valuations
- Experienced financial experts
- Tailored advice for property buyers and investors
Free Bank Valuation FAQs
Our bank valuations are complimentary so there is no cost for you to understand your property value. Some other bank property valuations can cost between $300 to $600 and if a commercial valuation is required over a property these can be $1500 or more per property.
A bank appraisal is typically completed by an independent property valuer to provide an estimate of property value. A building inspection will be carried out by a building inspector who will assess the structural integrity of a building and provide a report detailing any building defects.
Your bank valuation plays an important role in determining your loan-to-value ratio (LVR) as your LVR is calculated by dividing your loan value by the bank valuation and multiplying by 100 to get a percentage.
LVR = (Loan Value / Bank Valuation) x 100
For example, if your loan value is $400,000 and your bank valuation is $500,000 your LVR is 80%
($400,000 / $500,000) x 100 = 80%
Knowing your LVR is important as banks typically offer lower rates for loans with lower LVRs and Lender’s Mortgage Insurance (LMI) is charged on home loans with LVRs higher than 80%, which can add thousands of dollars to your loan balance.
Yes, it is possible to contest a bank valuation if you can demonstrate there are comparable sales data in the property’s area that the bank valuation has not taken into consideration. Properties that are on the market advertised at higher prices and real estate agent appraisals are not considered comparable sales data and won’t be accepted if you are contesting your bank valuation.
To get the best bank property valuation make sure your property is clean and in good condition. Address any minor repairs, declutter, and present your property in the best possible light. Having documentation on any recent renovations or unique features can also sometimes be helpful for the bank property valuation.