what are the different types of property valuations?

In Australia, banks typically use different types of property valuations to assess the value of a property for home loan lending purposes. Some of the common types of bank valuations include:

1. Full Valuation: A full valuation, also known as a comprehensive valuation or standard valuation, is a detailed assessment conducted by a licensed valuer. The valuer examines various factors such as the property's condition, location, size, comparable sales data, and market trends to determine its current market value. Full valuations are typically required for the purchase of a property, refinancing, or when the bank requires a thorough assessment of the property's value.

2. Desktop Valuation: A desktop valuation is a less comprehensive assessment conducted remotely by the bank's valuer using available data and property information without physically inspecting the property. Desktop valuations are often used for low-risk transactions, refinancing, or when the property is located in areas with well-established property markets and readily available data.

3. Automated Valuation Model (AVM): An AVM is a computer-generated estimate of a property's value based on statistical models and data analysis. AVMs use algorithms to analyze property data, comparable sales, market trends, and other factors to generate an estimated value. AVMs are typically used for quick assessments, such as pre-approval applications or accessing equity, but may not be as accurate as full valuations or desktop valuations.

4. Drive-By or Curbside Valuation: A drive-by or curbside valuation involves a visual inspection of the property from the exterior only, without entering the property or conducting an in-depth assessment. Curbside valuations are less comprehensive than full valuations and are typically used for low-risk transactions or when the property's value can be reasonably estimated from external factors such as location and curb appeal.

5. Restricted Valuation: A restricted valuation is a limited assessment conducted by a licensed valuer, focusing on specific aspects of the property rather than a comprehensive inspection. Restricted valuations may be used for certain types of loans or when the bank requires a simplified assessment of the property's value.

It's important to note that the type of valuation required by the bank may vary depending on factors such as the type of loan, the lender's risk assessment, and the specific requirements of the transaction. Additionally, borrowers may have the option to request a full valuation or choose a more cost-effective valuation option depending on their needs and preferences.