There are CVs, GVs, EVs, TVs and RVs. Most of these relate to property valuations and some clearly don’t, but let’s take some time to understand the all-important RV, or Registered Valuation, as it can make the difference between getting that dream home and missing out.
A Registered Valuation (as opposed to an E-Valuation or a Desktop Valuation) comprises a site visit by an approved valuer and a subsequent valuation report, which will state a market valuation of the property. This valuation will consider the valuer’s inspection and also comparable sales in the area. This is now the value the bank uses to lend against.
When Will a Bank Request an RV?
Banks will request a Registered Valuation for a number of reasons, but here are the main ones:
· You are building your own home
· You are buying a “turn-key” property (off the plans)
· You have less than 20% deposit and want to buy an existing dwelling
Who Can Perform an RV?
All valuations now have to be done through the respective bank’s preferred Valuation Portal. Some banks use CoreLogic/Property Hub, and others use Valocity (no relation to Velocity Financial).
Costs and Timeframes?
Expect a valuation to cost between $850-$1200, depending on the type of dwelling that is being valued.
Valuations usually take up to four days to get done, and then they need to be submitted to the bank for sign-off approval. So, it’s important to get your strategy correct with your advisor to ensure that there is time to do everything.
What if I Have a Deposit of Less Than 20%?
If you are purchasing an existing dwelling with less than 20% deposit, then you won’t be able to put in an unconditional offer without a Registered Valuation being signed off. The banks are very conservative in this area, and rely on an impartial and expert opinion for the market value that they will lend against.
You have a choice to pay for the valuation upfront (with the potential risk of not getting your offer accepted), or put in your very best offer with a Finance Condition, and get the valuation done once your offer has been accepted.
As there are potential limitations on any offer that requires a Registered Valuation, a good, robust plan is the key to success here. Get in touch with your adviser early, and they will help you come up with the best strategy for you.