Desktop vs physical valuation

rincha

Hi all, 

I have very limited knowledge about the difference between desktop and physical valuations. Desktop is mostly used for newer or standard properties whilst physical valuations are more for older or heavily modernised/extended/altered properties? Have I got that right?

My mortgage is finally moving and barclays have requested a physical valuation. 

My question is why would they need a physical valuation when the property is completely standard, built 1996, similar to a new build?

I thought it would just be a desktop. 

Thrugelmir

Lenders will use the most suitable method to ascertain whether the property provides adequate security for the monies being advanced. 

K_S

@rincha Personally, for purchase apps, I've never been able to discern a clear pattern as such for which apps go to a desktop Val and which ones require an internal inspection.

The most useful predictor (still only a vague correlation) as far as I can see is the application value vs that on websites like Mouseprice.

BertieN

Having worked in several mortgage operations I can agree with K_S - there is no pattern to whether physical or desktop valuation (AVM) should be used. It normally only follows internal business rules. One of which is that AVM are only suitable when LTV (regardless of any other variable) does not cross a threshold set by people in an office, likely wearing suits. E.g. a well known red bank will only use AVM for up to 80%; a leading building society up to 80%

One additional, yet obvious, piece of criteria is whether a desktop valuation is actually available for the property in question. Second, understand the error margin, and whether the sale price + LTV provides with enough cover.

As of 2016 as little as 10% of properties were AVMed. I know pandemic times greatly increased this but unaware by how much.