Property valuations play a crucial role in the housing market, influencing everything from mortgage approvals to investment decisions. Traditionally, obtaining a valuation has meant waiting for a physical inspection, often taking weeks to complete.
However, advancements in Automated Valuation Models (AVMs) and Desktop Valuations (DVs) have significantly accelerated the valuation process. DVs are now completed in a matter of hours, rather than days, providing lenders with an alternative option to AVMs. DVs empower lenders to make faster decisions on a mortgage offer – and that’s a win for lenders and customers alike.
At L&G’s Surveying Services, we have witnessed firsthand the effectiveness and reliability of DVs, which have become integral to our surveying services, especially as we see a growing demand for speed, accuracy, and cost-effectiveness. But how can we best combine the advantages of speed and cost with DVs, together with the risk oversight and expertise of a local surveyor?
Speed, cost, and accuracy: why desktop surveys will transform property valuations
Accuracy is the keyword here. Our lender clients demand this. Therefore, we believe that future valuation models must combine the best elements of AVMs, DVs, and use local surveyors. At L&G, we do this in our Property Decision Engine (PDE), which is the natural progression from bespoke valuation products into a unified, data-driven valuation service.
In recent years, the property market has increasingly embraced digital valuation methods, but the Surveyor remains core to the process. By combining a remote AVM or DV product with the expert oversight of a local surveyor, it means any analysis will be backed up by an industry professional.
For example, let’s consider how data keeps up with rapidly evolving environmental changes, effects on building insurance premiums, microeconomic climates and regional issues. Sometimes, the information lags, but surveyors will know about all the key issues that could impact a valuation. With the expert judgement from RICS-qualified surveyors and the latest data, AVMs and DVs provide a comprehensive and accurate assessment.
More importantly, the overall costs to the lender will be less as vital savings will be made on valuation and data processing.
Final thoughts: keep in mind the purchaser and our Duty of Care obligations
As the market continues to embrace faster, technology-driven solutions, AVMs and DVs are proving to be a smart, reliable choice for standard transactions. While physical valuations will be necessary for high-risk or complex properties, digital solutions provide a fast, cost-effective alternative that minimises delays and enhances efficiency. Looking ahead, a hybrid approach – recognising the advantages of digital tools and the expertise of a surveyor - will be key.
But please remember, buying a home is often the largest financial commitment a customer will make. A deep understanding a property’s condition is therefore essential. While valuations primarily focus on valuing a property rather than the physical condition of the property, buyers should distinguish between valuations and a survey to ensure informed decision-making.
