By Sergio Stefano, CEO & Head Broker
Before a lender hands over hundreds of thousands of dollars, it wants its own answer to a simple question: what is this property actually worth if we ever had to sell it? That answer comes from a valuation, and it can differ from the price you agreed, in either direction.
The 3 kinds of valuation
- Full valuation. A valuer physically inspects inside and out, measures, photographs and reports. Used for higher-risk or higher-LVR lending.
- Desktop valuation. Data-driven: recent sales, property records, market models. Fast, and common when the deal profile is lower risk.
- Kerbside valuation. A drive-by exterior check plus data, sitting between the other 2.
What valuers actually look at
Comparable recent sales carry the most weight, adjusted for land size, condition, improvements, position and the market’s direction. What valuers do not price: your renovation plans, your emotional attachment, or what the auction crowd was willing to do on a sunny Saturday.
When the number comes in low
A low valuation shrinks what the lender will advance, which can mean finding more deposit, renegotiating, or trying a lender whose valuation differs, and they genuinely do differ. This is where a broker earns their keep: we see the valuation landscape across 50+ lenders, not 1. It matters in refinancing too, where your equity, and therefore your options, hangs on the valuer’s number.
General information only. The full journey lives in the home loan process guide.