Quick answer
A kerbside valuation, also called a drive-by valuation, is a property valuation where the valuer inspects only the outside of the property from the street and combines that with sales data. Nobody goes inside. Lenders use it on lower-risk property-secured loans because it's quicker and cheaper than a full valuation, but it can miss interior renovations or problems, so the figure may differ from a full inspection.
Key points
- Exterior-only inspection plus recent comparable sales; the valuer doesn't go inside
- Sits between a desktop valuation (no visit) and a full valuation (internal inspection)
- Used where the loan is modest relative to the property's value
- Interior renovations can be missed, so a low result is worth questioning with evidence
The valuer parks out the front, looks at the building, takes photos and drives on. That, give or take a few minutes and a lot of desk research, is a kerbside valuation. It’s an exterior-only assessment of what a property would sell for, built from what can be seen from the street and recent sales nearby.
Where it sits among valuation types
Lenders choose how much valuation work to commission based on the size and risk of the loan. The Australian Property Institute’s guidance treats a kerbside report as a restricted assessment, giving less assurance than a full report.
| Desktop valuation | Kerbside valuation | Full valuation | |
|---|---|---|---|
| Site visit | None | Outside only | Inside and out |
| Typical use | Very low loan-to-value | Low to moderate loan-to-value | Larger or riskier loans, commercial property, construction |
| Speed | Fastest | Quick | Slowest; needs access booked |
| Cost | Lowest | Low | Highest |
| What it can miss | Almost anything specific to the property | Interior condition and renovations | Least |
Why it matters for a property-secured business loan
When you borrow against a home or investment property, the valuation sets how much the lender will advance. Most property lenders cap the combined debt at a percentage of value, the loan-to-value ratio. A kerbside figure that comes in lower than you expected directly reduces the equity available.
Here’s how a gap plays out for a Perth electrical contractor seeking a second mortgage behind an existing $500k home loan, with a lender capping total borrowing at 70% of value:
| Owner’s estimate | Kerbside result | |
|---|---|---|
| Property value | $1m | $900k |
| 70% of value | $700k | $630k |
| Less existing home loan | −$500k | −$500k |
| Room for a business loan | $200k | $130k |
A $100k difference in value has taken $70k off the loan. Run your own numbers in the property equity calculator.
If you suspect the valuer couldn’t see what makes your place worth more, let us know your figures and we’ll talk through which lenders and valuation types fit.
When a kerbside result looks wrong
The most common reason is an interior the valuer never saw: a new kitchen, an extension at the back, a granny flat behind the garage. The reverse also happens, where a tidy facade hides a tired interior and the figure is generous.
If you think the number is low, gather evidence: recent sales of genuinely comparable properties nearby, renovation invoices, council approvals and photos. Ask the lender whether it will request a review or order a full valuation. Not every lender will, and some products are built around kerbside or desktop reports for speed, so there’s a trade-off between a quicker answer and a more detailed one.
It isn’t your rates notice
Your council rates notice or land tax assessment shows a value set by the state valuer general. In NSW, for example, that figure is a land value and leaves out the house and other improvements. Lenders don’t use it. They rely on a market valuation from a valuer on their own panel.
Related terms
Valuation, valuation fee, equity, security and first mortgage.
Borrowing against property for your business?
How a lender values your property can decide the whole deal, and some lenders are better suited to your property type than others. Tell us about the property and what you need in a form that takes about sixty seconds. Nothing is run against your credit file when you send it, and your details won’t be shared around a long list of lenders. A real person studies the numbers and rings you back. A realistic value and an accurate figure for your existing mortgage help us find the right match first time.
Frequently asked questions
How long does a kerbside valuation take?
Often a few business days from order to report, depending on the valuer's workload and location. That's usually quicker than a full valuation, which needs a time booked with the owner or tenant to get inside.
Who pays for a kerbside valuation?
The lender orders it, but the cost is commonly passed on to the borrower as a valuation fee or included in the establishment costs. Ask before you proceed whether the fee is refundable if the loan doesn't go ahead.
Can I ask for a full valuation instead?
You can ask. If you've recently renovated or the property has features that aren't visible from the street, a full inspection may give a fairer figure. The lender decides which type it will rely on, and a full valuation usually costs more and takes longer.
Is my council rates valuation the same thing?
No. State valuers general value land for rates and land tax, and those figures often exclude buildings and aren't prepared for lending. A lender relies on a market valuation by a valuer from its own panel.
Can I use a valuation I already have?
Usually not. Lenders want a report addressed to them from a valuer on their panel, generally dated within the last few months. An older report or one done for another lender can still be useful background when you discuss the figure.