What is a property valuation?

Every property comes with a value in dollar figure at the time when it is valued by a qualified valuer. This dollar value is instrumental in any loan application because the value of the property at the time of the application must at least be enough to secure the borrowed amount. Hence, prior to the banks providing any borrower with a loan, they must conduct an independent valuation to protect their interest. This valuation is often billed to the borrower as a part of the loan application. Make sure that you do budget for this expense when you apply for a loan.

The length of time it takes for a valuation to be completed depends on whether the bank is intending to do a desktop valuation or a physical valuation. The desktop valuation involves the searching of information on a computer behind the desk, whereas a physical valuation involves sending a representative to the property itself to inspect the property and apply a value to it. The latter can take at least a few days to complete, so it is important that you allow for this timeframe when negotiating for your subject to finance clause time period. You should allow at least 14 - 21 days after signing to complete your loan application.