How do I get a new property valuation report?
When considering the property market, it’s important to learn about the valuation process. A comprehensive report from a certified professional can inform your investment strategy, save you thousands of dollars or point you towards the perfect purchase. Qualified
property valuers in Darwin are trained to establish the true market value of any property.
An independent valuation is:
- a legally certified report
- widely recognised as an impartial process
- developed to support property owners and investors
- based on three proven methods
- designed to inform buying and selling decisions.
Valuations can also serve a number of legal and property-tax-related matters.
Though there are other services aimed at establishing the value of the property, only independent valuations are recognised as objective and accurate.
Getting a valuation report can help investors avoid risk, sell for the perfect price or pay the right amount of tax. To get it right, licensed valuers undergo intensive training in both market and financial analysis, as well as research.
The market, as any investor knows, is capable of rapid change. There are numerous factors that contribute to these regular shifts, including supply and demand and the general state of the economy. This takes specialised training and an equal combination of property and financial expertise.
What is a property valuation report?
A valuation report is a comprehensive description of the valuation process. It details every step of the process, including the rigorous calculations and market research employed by
Certified Practising Valuers (CPVs). This report is the perfect aid for any investor.
Again, the ultimate aim of any valuation is to establish a property’s
true market value. CPVs develop valuation reports for the likes of
residential, retail, commercial, rural and industrial properties.
These reports look at either current or retrospective valuer, depending on what the customer needs. For instance, tax valuations may be based on a past date, while a valuation driving a home sale would be based on its current value.
Property valuation reporting:
- may be either short or long form depending on the purpose of the service
- describes the proven methodologies used in any service
- is legally recognised by the courts as accurate and objective.
Such reporting can guide businesses in key financial decision-making. It can assist any investor in maintaining and expanding their portfolio or help the uninitiated enter the property market.
In other words, property valuation reports are a key part of an active, healthy property market. They support a range of legal, commercial and private purposes.
Who writes a property valuation report?
Only a licensed, independent valuer can deliver a legally certified valuation report.
These professionals are trained members of the
Australian Property Institute (API). This esteemed organisation is among the most respected names in the Australian property market. In addition, they are members of the
Royal Institute of Chartered Surveyors (RICS).
With a combination of financial knowledge and expertise across the property market, licensed valuers can establish either the
current or past value of any kind of property.
Their services include valuations for:
- supporting the buying and selling process
- assisting with negotiations for rental agreements
- calculating taxes such as stamp duty and capital gains tax
- legal affairs such as family law, mediation, probate, settlements and deceased estate.
CPVs play a key part in supporting investors and property owners across the country. They are entirely distinct from both real estate and bank valuers, which represent very different interests.
Real estate agents are focused on the buying and selling of property. They assist current or future property owners while earning a commission from the final sale. This can be considered a conflict of interest in most cases.
On the other hand, bank appraisals naturally represent the bank. Their services exist to validate home loans and are generally more conservative.
Only CPVs provide truly objective, accurate reporting.
How to develop real estate valuation reporting
Most reporting is based on a series of repeatable methods. These can be used on residential and commercial property, among others, for tax purposes or various legal matters such as
deceased estate.
Additionally, the contents of every valuation report can differ significantly, but there are key standards that remain the same across every service.
Any property valuation will include the details of both the client and the valuer. It will include a list of details about the property such as its condition, age, location and more. The vast majority of each report consists of in-depth research and analysis of key financial and market factors.
This includes tallies for everything involved in replacing the property. Your valuer reviews building costs and materials, labour, administration and more. This step determines what it would cost to replace the subject asset in the case of its destruction.
This is a particularly critical step in insurance-related property valuations.
Among the greatest benefits of working with a CPV is the extensive market databases they have access to. These databases allow your valuer to compare the subject asset to recent sales in your area.
They consider factors such as economic growth, zoning restrictions, access to amenities, and environmental risks.
If your property generates any profits, this too will be factored into the final valuation.
Summary:
There are few better ways to mitigate risk as a property investor than with a legally certified valuation report. These documents can both save and earn you money, as well as help you avoid overpaying hefty property taxes.
Whether you own commercial, retail or industrial property, these reports are recognised by courts across Australia as fair, accurate and impartial.
These reports detail, to great lengths, the full extent of research and analysis that every accurate valuation depends on. They describe their findings and the current or past market value of the asset in question.
For more information on what our reports can do for you, contact one of our licensed valuers today.
