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Bridging finance has always been a dynamic, fast-paced sector, but in recent years, it’s seen a remarkable evolution. One key player driving this transformation is desktop valuations. No longer just a temporary fix, these digital appraisals are becoming a staple in how bridging finance deals get done.
Speed: The Need for Faster Turnaround
When you’re dealing with bridging finance, time is of the essence. Traditional property valuations can take days, sometimes weeks, to organise, slowing down deals and creating frustration for borrowers and lenders alike. That’s where desktop valuations come in.
What’s a desktop valuation?
Simply put, it’s a valuation carried out remotely using available online data, without the need for a surveyor to visit the property in person. This process eliminates many of the logistical hurdles of traditional appraisals and speeds things up dramatically.
Instead of waiting for a surveyor to check out a property, lenders can now access digital reports in a fraction of the time. This is a game-changer when you’re up against a tight deadline and need to release funds quickly.
The faster turnaround benefits everyone involved: borrowers can access capital without delay, while lenders keep deals moving smoothly. In bridging finance, where properties are often bought and sold quickly, these time savings can be the difference between closing a deal or missing out.
Accuracy: Better Data, Better Decisions
Speed is great, but what about accuracy? You’d think skipping an in-person visit might compromise the quality of the valuation, right? Not quite. The data used in desktop valuations is incredibly detailed, often pulling from a wide array of sources, including property transaction records, online listing platforms, and local market trends.
This wealth of information gives lenders a well-rounded understanding of the property’s value, without the need to step foot inside.
Of course, there are scenarios where a traditional, in-person valuation is still necessary—especially with more complex properties or high-value transactions. But for many straightforward deals, desktop valuations offer a solid level of accuracy that both borrowers and lenders can trust.
Cost-Effective for All Parties
Let’s talk money. Traditional valuations aren’t cheap. By the time you hire a surveyor, arrange for the property inspection, and cover any other associated fees, costs can pile up. Desktop valuations, on the other hand, cut out many of these expenses.
For borrowers, this means less out-of-pocket costs upfront, which is always a bonus when you’re already juggling financing fees. Lenders benefit, too, as they can streamline their processes and reduce overheads. In an industry where margins can be tight, these savings are a welcome relief.
Flexibility and Adaptability
Perhaps one of the most appealing aspects of desktop valuations is their adaptability. They don’t rely on geography, which means lenders can access valuation reports for properties anywhere, regardless of location.
This flexibility proved especially crucial during the COVID-19 pandemic. Stephen Clark, Founder of Finbri Bridging Finance, highlights “The rise of desktop valuations in bridging finance during the early 2020s, was fast-tracked due to COVID-19-related property transaction stalls. Bridging lenders started to address inefficiencies through automation and fintech adoption, marking a significant shift in the market.”
When in-person inspections weren’t an option, desktop valuations stepped in and filled the gap. Lenders who were already using digital tools were able to keep the wheels turning, while others quickly adopted fintech solutions to keep up. What began as a workaround during a global crisis has since become a core feature of modern bridging finance.
Embracing Fintech and Automation
The growth of desktop valuations is closely tied to the broader trend of fintech adoption in the finance industry. Automation, machine learning, and data analytics are driving efficiencies that were unthinkable just a few years ago. And it’s not just about speed—it’s about using data intelligently to make more informed decisions.
For lenders, this means they can process more applications, faster, without sacrificing accuracy. For borrowers, it translates into quicker access to funds and a more streamlined application process. In short, everyone wins.
Environmental Impact
Finally, it’s worth mentioning the environmental angle. Traditional property valuations involve travel, paperwork, and multiple site visits, all of which leave a carbon footprint. With desktop valuations, much of this is done digitally, cutting down on emissions and reducing waste.
While environmental impact might not be the primary concern for every lender or borrower, it’s certainly a nice bonus. As businesses across the finance sector look for ways to become more sustainable, adopting digital solutions like desktop valuations is an easy win.
Key Benefits of Desktop Valuations in Bridging Finance Summed Up
- Quick and Efficient – No need to wait for an in-person surveyor, cutting down weeks of delay.
- Data-Driven Accuracy – Pulls from multiple online sources, ensuring reliable property appraisals.
- Lower Costs – Reduces the fees associated with traditional property valuations, saving money for both borrowers and lenders.
- Geographical Flexibility – Allows valuations to be conducted anywhere, regardless of the property’s location.
- Pandemic-Proof – Became a go-to solution during COVID-19, proving its adaptability in challenging times.
- Supports Fintech Growth – Integrates seamlessly with modern fintech tools, pushing the finance industry forward.
The Future of Bridging Finance
Desktop valuations have proven they’re here to stay. In the fast-moving world of bridging finance, where every minute counts, it’s no surprise these digital tools are becoming the norm.
Whether you’re a lender looking to stay competitive or a borrower seeking to streamline your financing process, desktop valuations are changing the game for the better.
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