LSL subsidiary surveying firm e.surv has launched a new ‘Remote Valuation’ service, stressing that this is different from, and better than, an automated valuation model.
It says it is is set to revolutionise the industry by offering mortgage lenders a quicker, more cost-effective and accurate digital alternative.
Remote Valuations carried out by e.surv are, it says, conducted by experienced valuers who have strong insight into local market conditions. Using e.surv’s iPad programme, valuers assess the same level of comparable data as they do for physical inspections to derive an accurate valuation without the need for physical inspections.
The bespoke software enables valuers to accurately identify properties using geographic coordinates, as well as automatically download boundary plans.
Valuers also have access to official data from the Land Registry and third party sources such as Rightmove and Google Maps.
The level of accuracy in e.surv’s Remote Valuation service means it is suitable to be used for both purchase and remortgage decisions, it is claimed.
The Remote Valuation service is fast to complete, making it far quicker than the four to five day turnaround involved in a physical inspection. However, valuers retain the right to recommend that a property receives a full physical valuation if they deem it necessary, for example if the building is of non-standard construction.
e.surv’s Remote Valuation service has been through a series of in-depth trials conducted with major UK lenders over the past year.
In 95% of completed cases, the Remote Valuation matched the physical inspection valuation. In cases where there was a difference between the physical valuation and e.surv’s Remote Valuation, the average variance was only 7%.
The business claims that the new offering is both faster and more accurate than other remote models.
LSL’s other businesses include estate agents Your Move, Reeds Rains, and flagship London brand Marsh & Parsons.
Desk top valuations are becoming more prevalent. I think mortgage lenders should still ask the valuer or valuation department to contact the estate agent to say a desktop valuation is being done.
There are a few reasons for this with the biggest just simply that it’s a big tick in the buying process and a measure of our buyer. Sometimes I have chased buyers for news of a surveyor getting in touch and discovered they have just received the mortgage offer because it was done by desktop.
I am now having to contact solicitors on a more regular basis than I might otherwise just to see if the mortgage offer has been issued as I’m unsure if a desktop has been done.
It also makes the agent unsure whether the buyer is having difficulties raising the finance. News of the surveyor calling would generally be an indication that things are looking okay, not always, but still a good sign.
If I’m checking a chain and the agent is able to confirm the mortgage valuer has been in touch then this gives a degree of comfort, where as if it’s going to be a desktop, none of us know.
Sometimes it is necessary to ask the valuation be held off until news of a chain comes together. Desktop takes away our control/input. Also I have had people put down the wrong address or the wrong price and this enables us to check the information that has been submitted.
Not knocking the idea of desk top valuations, just saying the process of notifying the agent shouldn’t be any different to how it is when access is needed.
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LSL’s other businesses include estate agents Your Move, Reeds Rains, and flagship London brand Marsh & Parsons.
LSL also have a large share in YOPA, a rather useful tool for not so local property experts and any other mortgage sale initiatives in the future?
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Speaking as a Mortgage Broker, whose responsibility is to the buyer, rather than speeding things up, in many cases it could do the reverse. The reason being I will stress the need for a Home Buyers report even more so than I do now. Currently, if a standard valuation is considered sufficient, at least that will pick up any major issues. How is that catered for by a desktop or remote val? Very few FTB’s know the tell tale signs that could lead to further problems down the line. Obviously re-mortgages are fine, but potentially a higher risk for the lender.
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Using e.surv’s iPad programme, valuers assess the same level of comparable data as they do for physical inspections to derive an accurate valuation without the need for physical inspections.
How does that work with defective properties? Will this lead to use by websites? like Zoopla who’s current valuation tool is so inaccurate it causes many a headache for agents trying to get vendors to realise the true valuation! You can’t better physical inspections. I would like to see how the PI industry will react!
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Exactly Woodentop. I’ll be covering my back even more than I already do!
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