If you're buying a house or getting a loan secured against one, you might have heard the term "desktop valuation." But what does it mean, and when is it useful?
This guide will explain desktop valuations and when they might be a good option.
What are desktop valuations?
When you buy a house, you often need a valuation. Usually, a surveyor visits the property to determine its value. This makes sure the property is worth the stated amount and could cover the loan if payments aren’t made.
However, a desktop valuation works differently. Instead of visiting the property, the surveyor estimates its value remotely. They use data such as market trends, local information, and sales records. This process is faster and is becoming more popular with lenders.
What is the difference between a desktop valuation and a physical valuation?
The main difference is how the property is assessed. These are the differences:
- Physical valuation: A surveyor visits the property in person to inspect and verify details. This method is more accurate, but costs more due to the site visit.
- Desktop valuation: This is done remotely, using data and images to estimate the value. While quicker and cheaper, it’s less detailed and can miss important aspects.
How does a desktop valuation work?
In a desktop valuation, an agent looks at all available information about the property to estimate its value. This can include land registry records, photos or plans you provide, online sales data, the agent’s knowledge of the local market, and any other relevant public data.
Benefits of a desktop valuation
- Faster process: Without the need for an in-person visit, desktop valuations can be quicker. This can help you move forward with your plans sooner.
- Lower cost: Since everything is done virtually, you may save money by avoiding fees for an on-site inspection.
- Reliable: While not as accurate as a physical inspection, desktop valuations are still a useful way to assess a property’s value. This is why they are being accepted by lenders more.
Disadvantages of a desktop valuation
- Less accurate: Without an in-person visit, desktop valuations rely on existing data, which may not capture all features of the property. For example, updates or changes to the property might go unnoticed.
- Fewer details: Desktop valuations may have less information compared to a physical inspection. This may not give you enough information if you’re buying the property for the first time and need a thorough understanding of its condition.
- Risk of errors: Since an in-person inspection isn’t being carried out, there’s a higher chance of inaccuracies, potentially leading to incorrect valuations.
When to use a desktop valuation?
Desktop valuations are ideal for properties in good or average condition, or when there’s recent data available, such as a recent sale.
For properties in poor condition, or if there’s a dispute over the property’s value, a physical valuation may be a better option.
Summary
A desktop valuation can be a quick and affordable way to estimate a property’s value, especially if the property is in good condition or there is recent data available. While it’s not as detailed or accurate as a physical valuation, it’s still a reliable method and is being used more by lenders.
However, if the property is in poor condition or there’s a dispute about its value, a physical valuation may be a better choice. Knowing the differences between the two can help you decide which is right for your situation.
