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Do I need a valuation or a valuer?

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A bank will often require you to engage a valuer, who performs a registered valuation. The cost of this can range but could potentially be $800-$950 and is normally at the customer’s cost. It varies based on different circumstances.

You’ll typically not be able to choose your own valuer.

Instead, the bank will have a ‘blind’ ordering system that must be used. The systems can include “Valocity” or “CoreLogic”.

The mortgage broker or financial adviser can help order this. The valuation is typically done some time after you have obtained a ‘conditional approval’ from the bank.

The purpose of the valuation is to also help the bank/lender ascertain the value of the house. For example, is it worth the money you are paying, and does it present a greater risk? It also allows the bank/lender to receive additional commentary, details and photos of the property.

In some certain cases, the need for a valuation might not be required. For example, if you are buying with a deposit of over 20%, the bank might be able to forgo the requirement if they can electronically verify the property value themselves as being suitable.. But this is not always possible. For example, in property markets where the prices are high, the electronic verification method might find it even tougher to justify the value of the house.

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