Bank valuation (VAS)

Hello all.

I recently built my first IP and I contacted my broker to get a valuation on the house to see how much equity I can pull out to possibly purchase a second in the future.

He just sent me an email with the heading "Valuation Assessment System (VAS)" which shows my valuation amount as 532K and valuation type as "Desktop".

Now I am a little confused as to what desktop refers to? It also states that I can "accept internal value or order a desktop". It's CBA if that matters as well.

The reason I am asking here is because his wife went into labour whilst he was on the phone to me and I don't want to bother him with a silly question : )

Thank you to all who can shed some light on this!

 

Desktop valuation means the valuer has valued the property based on data available online (usually CoreLogic). Other valuation types are:

curbside - the valuer will drive by and look at the property

full valuation - the valuer inspects the property, inside and out - these will usually be the most accurate (depending on the valuer’s expertise).

If you think they’ve undervalued it, I’d be pushing for them to redo it as a full valuation

 

It’s a desktop valuation. It’s generated without having a valuer physically visit the property. CBA will lend against it. There are some limitations when they will lend using a desktop val but presumably you match those if your broker has sent you the desktop Val.

If you are not happy with the desktop Val you can ask for a full Val to take place and a valuer will visit.

Regards,

Jason

 

Its actually an CBA internal system valuation with an option to order a desktop valuation or accept the internal VAS value.
Do you think the value is too low or would that value allow you to access the equity you require?

Did you get a construction valuation before you built, if so what was the value?

 

Thank you very much for the responses its much more clear now.

It's a bit of a difficult one for me as my block is quite unique. it's rather small at 294sq but the house I put on it is 19sq. The frontage is 14.5 metres wide where 95% of the others in the estate are less than 12.5 despite being much larger blocks. With the house I went extremely basic with the exception of high ceiling, high doors. Currently on the loan I owe 385K making the total equity 145-147K. I'm quite happy with this figure would you advise that if I am comfortable with the number and its more than enough to carry on with my next project that I shouldn't tempt fate and try to push for a better figure as it may decrease?

 

Sorry forgot to answer. No I did not and I was not aware of that. Oh well I guess you learn from each experience

 

Interested to know how you funded the construction without an 'as if complete' construction val, any lender would've needed to do one before approving the finance, anyway that's besides the point.

Just be aware that you won't be able to access 100% of the equity as CBA has a limit of 90% of the property value, unless you cross secure the properties (existing and next purchase), which is generally not a good idea.

 

In that case I'm sure there may have been I just wouldn't be able to remember it without rummaging through all the paperwork i've got tucked away in a box.

Thanks again for the advice! I'll still do my research and see what my budget should be around and worst case scenario I'll go for the more indepth valuations as you all listed above if I need more

 

Also sorry all but a bit of a silly one.

Seeing as though corelogic has valued it at 530 for a 4-2-2 would you suggest I go with it? as more than 85% of the only other 4-2-2's in the area are on blocks that are 370+ sqm and are selling for roughly the 550-570 mark. Has anyone ever heard of corelogic valuating a house at more than what was expected? Not too sure on the algorithms or science behind it. Does it take into factor block size etc?

 

It's not really Core Logic that's given the value, it's an internal valuation system at CBA and takes into account more than just Core Logic data.
Yes it happens all the time.
If you suspect it's a higher valuation that you would get with a full valuation then just take it, best to get some feedback from your broker about it when they're available again.