Frequently Asked Questions

What is a property valuation exactly?

This is a great question. A property valuation is a legal document produced by a certified valuer that calculates your property’s fair market value. This value is calculated for the current date or even a date in the past and can be used for a whole host of reasons.

In order to determine an accurate figure a professional valuer needs to consider more than 200 factures. This process is by necessity a complex and detailed one and can only be trusted with a valuer who is experienced and certified.

When would I need a property valuation?

A certified property valuation report, like the ones we provide, are used in a range of matters. Whether your property is affected by a legal procedure, government compliance, financial reporting or another private matter, an independent property valuation is imperative.

If you are involved in a purchase or sale of a property or need to assess your property for tax reasons you need a property valuation. Our valuations can also be used in any type of litigation proceedings your property might be involved in as well as assist in seeking compensation or a land tax objection.

Many of these uses of a property valuation require a detailed, specialised, and independent report. The property valuation reports that we produce are always of the highest quality, they are transparent, highly detailed and comprehensive. This type of report requires a valuer that is not only highly trained but has years of experience and that is why all our independent valuers have on average six years of training combined with over 20 years of experience.

What qualifies a valuer to conduct certified valuations?

In order to conduct a certified valuation a valuer must be a Certified Practicing Valuer (CPV) and a member of the Australian Property Institute (API). To acquire these qualifications a valuer must have completed a related tertiary education, a two-year traineeship, and a professional interview. It takes an average 6 years of training before a valuer can reach the appropriate level a CPV requires.

API accredited valuers have an all-inclusive knowledge of the property industry and are considered to be the highest regarded independent property valuers in the nation. The work that they do is consistently the most exceptional available.

All members of the senior property valuers’ team at Darwin Property Valuers Metro are Certified Practicing Valuers. This ensures that the property valuations that we perform are all of the highest quality and can meet any requirements.

How is the value of a property calculated?

While there are a few methodologies that can be used to determine the value of a property, the three that are most often employed can be used in almost all cases. They are:

• The Direct Comparison Approach
• The Summation Approach
• The Capitalisation of Net Income Approach

The Direct Comparison Approach:
This is the most common approach for valuing a property. A valuer will analyse more than 200 different variables between a subject property and others like it.

The Summation Approach:
This method is a secondary check only used by API certified property valuers. It will calculate the value of any improvements made to a property if that improvement was to be replaced. The fair market value is determined by combining the properties land value to this depreciated improvement value.

The Capitalisation of Net Income Approach:
This method is only used for commercial properties. It can be used in combination with The Direct Comparison Approach and The Summation Approach to value a property. A valuer will consider the net retail income of a property and then capitalise this with a value drawn from comparable sales in order to calculate the fair market value.

What are the different types of property valuation reports?

A property valuation is a certified, independent, and comprehensive report on a subject property. It provides a detailed examination of a properties value based on over 200 variables that influence that value. We can offer this report in one of two configurations:

• A Short Form
• A Long Form

The first of these, a Short Form, will include a detailed and comprehensive analysis of the subject property taking many factors into consideration. Things like environmental factors and market volatility are always given proper consideration. This report can be used in the vast majority of cases but is not suitable for use in court.

The Long form property valuation on the other hand is used in cases concerning commercial properties, family law and litigation. This form can be produced to meet any judicial standards including the statutory statements that a court will require. This valuation report will also include an expansive market analysis, a highly detailed account of the property in question and at minimum 5-7 comparative sales.

Both of these reports proved a detailed property valuation that has been completed by a Certified Practicing Valuer (CPV). All of our senior valuers are CPVs and members of the Australian Property Institute (API) so you can rely on us to produce a consistently high quality valuation, no matter the type or form.

What distinguishes a property valuation from a real estate appraisal?

A property valuation is an unbiased and legal document that has been completed by an independent valuer, a real estate appraisal however is an insight to your local property market from an interested party.

The key difference here is that a real estate agent can not act as an independent and unbiased party. In many cases they will over quote the value of your property to try and secure your business, which all too often leads only to disappointment.

But a certified property valuation performed by an independent valuer on the other hand is always unbiased. A property valuation report will be made up of individualised and comprehensive analysis of a subject property that takes in all necessary information and is always based on objective data.