First identify the valuation
A council rateable value, desktop or automated estimate, and registered valuation are different things. A lender may require a valuation from an approved provider for its lending purposes.
Separate the numbers
Record the agreed price, valuation type, available deposit, proposed lending, and other costs. Ask the lender what amount it is prepared to lend against the property.
What may change?
A valuation below the agreed price can create a funding gap or change the LVR assessment. It does not automatically answer whether to proceed; the contract, finance conditions, and professional advice matter too.
Costs and questions
Allow for the valuation fee, possible extra deposit, legal or lender work, and the cost of delaying or changing the transaction. Ask who ordered the valuation, whether another valuation is accepted, what lending amount is available, and what the agreement deadline requires.
Illustrative example
Noah agrees to $700,000 but receives a $670,000 valuation. He identifies the difference and asks his lender and solicitor about the available funding and contract options.
Evidence categories to organise
- Agreed price
- Valuation type
- Valuation amount
- Valuation fee
- Available deposit
- Possible funding gap
- Proposed lending
- Finance condition
- Legal advice
This guide is general information only. MoreGage does not provide regulated financial advice, a lending assessment, approval, or an offer.