What lenders look for in a valuation report

When a bank reviews a valuation report as security for a loan, three things decide whether the figure is accepted or questioned.

First, the evidence. A credit committee wants to see the comparables behind the number: what actually sold or let nearby, when, and on what terms. A figure without visible evidence reads as an opinion; a figure with evidence reads as a conclusion.

Second, the assumptions. Every valuation rests on assumptions — about title, planning, condition, and the market. A strong report states them plainly so the lender can judge the risk of each one. A report that hides its assumptions forces the lender to assume the worst.

Third, independence. The valuer should have no stake in the transaction completing. That is why Bayview does not earn commissions on the valuations we sign: the opinion of value has to be worth the same whether the deal closes or not.

If you are preparing property as security for financing, ask your valuer how each of these three will be handled before the inspection — it will save weeks at the approval stage.