What is a desktop valuation?
A desktop mortgage valuation is a type of property valuation carried out without a physical inspection of the property. It's also known as an Automated Valuation Model, or AVM.
The desktop valuation is produced using data about the property and its location, alongside historical transaction data. Algorithms estimate the value of the property based on comparable recent sales in the local area, the general condition of similar properties, and other relevant factors.
The advantages
The main advantages of a desktop valuation are speed and cost. It can be completed very quickly, often within minutes, and it's usually cheaper than a physical valuation.
The drawbacks
The downside is that a desktop valuation doesn't take into account the current physical condition of the property or any unique features that could affect its value. As a result, it may not be as accurate as a full survey.
It's worth noting that while a desktop valuation might be sufficient for the mortgage lender to decide how much they're willing to lend, it may not be enough for the buyer who wants a more comprehensive understanding of the property's condition. In the UK, buyers often opt for a HomeBuyer's Report or a full structural survey to get a clearer picture before purchasing.
Your home may be repossessed if you do not keep up repayments on your mortgage.