How Desktop Valuations Work

I'm wondering if anyone can shed some light on the process by which desktop valuations work?

i.e. are they derived by an algorithm or by someone actually comparing similar properties on the internet?

So, if I get a desktop valuation and my property is a 3x3x2 will they just get the median for 3x2x2 properties for a given area and call it a day? Or will they make some attempt to look at size of block, age of dwelling, size of dwelling, condition, etc?

Cheers

 

I think it's a bit of both. As far as I recall, you can select the target house, and then search and select your recent comparable's. Then click run!

 

Would that make it more or less preferable if you had a similar land content and building size but the condition was less preferable than recent sales?

 

Or occasionally they call the owner (me) and say, ‘Hey how much do you think it is worth’. Has happened a few times.

 

All that comes into it. Proximity to facilities, how the property ranks compared to others in the area, sales history all have some influence.

... and then there's Rolf's voodoo.

You're thinking of the RP Data reports. Whilst lenders use RP Data's service for desktops valuations, there's no opportunity to select comparables or anything else for that matter in a lenders report. They just ask for the address, contact details and sometimes a credit card number to invoice.

 

Desktop vals consistently vary between lenders. Given the same set of data is usually used (and often platforms), i tend to agree there's a lot of 'voodoo' going around.

All of the property related features should technically help. Essentially it works of comparables. But actual results of desktops can skew in both directions (offers opportunity for equity release plays for aggressive strategies too).

 

Yeah, that’s because the system wants to know your estimation. If your estimation is lower than the system’s, they go with that

Less and less so I reckon? Seems like they’re all using RP data now so getting same results?

 

I’ve been asked to estimate the value of my properties prior to a bank val. But our broker advised me to estimate a bit higher than i really think they are worth. Guess that is because of your comment above @Ethan Timor

 

Not sure on differences today vs the past.

But there are definitely differences today even across those that use similar RP data platforms. Try 10 vals with CBA/Westpac and you'll get a spread of results. There'll likely be one outside a 10-15% range too! Herein lies one of the benefits of being at 80% LVRs (where desktops can be controlled) and valuer shopping opportunities exist.