Anyone with a stake in real estate will understand the importance of an independent property valuation service. These are reports prepared by qualified professionals to determine the true market value of a subject property.
However, a property valuation in Darwin comes with costs. As only Certified Practising Valuers can prepare these legally accepted valuation reports, they will need to be compensated for their time.
Each of these professionals is registered with the Australian Property Institute (API). The API oversee thousands of property professionals in the country and helps maintain a consistent standard of quality across the board.
The certified reports are prepared in line with all the relevant regulations and can thus be used in all sorts of circumstances. From pre-sale guidance to assisting with settlement negotiations, property valuations are hugely beneficial.
The benefits of a valuation ultimately outweigh the costs but you will still need to make sure you’re financially ready for it.
How much does it cost for a property valuation?
There is no one set fee that applies to property valuations, and the costs will vary. In general, you can expect to pay hundreds or even thousands for an independent valuation from a registered expert. The cost for a residential valuation will not be the same as the cost for a commercial valuation.
The different factors affecting the cost of a valuation are:
- The purpose of the report
- The type of property being assessed
- The experience of the firm
- The location of the property.
The more detailed a report, the more it is likely to cost. Valuations for properties in isolated rural areas will also likely cost more.
For the best idea of how much a valuation is going to cost, request a quote from the organisation assisting you. They can provide a clear outline of the probable costs.
To answer the question “how much should a property valuation cost?”, it depends on the above factors.
Why not use a free service?
The price of a valuation might have you considering your other options, such as an online valuation tool or a real estate appraisal. These services are often free but they will not provide the same standard of accuracy as a valuation report.
Online services can prove useful when you’re trying to get an estimate of multiple different properties. They make use of automated valuation models (AMVs); a statistics-based program that uses available real estate information to provide an estimate of the market value.
This is not nearly as accurate as an independent valuation and does not serve as conclusive proof of value.
A real estate appraisal is an analysis of your property’s value by a real estate agent. As realtors stand to earn commission on sold properties, their internal bias may end up affecting the final calculation.
Appraisals also can’t be used as proof of value in legal, private, or business negotiations or transactions. As such, it does not have the same standard of legitimacy as an independent valuation.
How can a valuation save me money?
There are plenty of benefits to getting a property valuation. While the cost may initially seem steep, you may end up saving money in the long run.
A few of the ways that valuations can benefit you financially are:
- Pre-sale/pre-purchase guidance: Knowing the true market value of a property can help ensure you don’t end up overpaying or underselling. A valuation can be a useful guide to determining a price reasonable price point.
- Legal disputes: If you are in the middle of a legal dispute involving property, a valuation can help ensure you don’t waste unnecessary time debating the true market value. With that, you can avoid additional legal expenses.
- Insurance: Valuations are crucial to ensuring you get the appropriate insurance coverage for your property. Purchasing a package that does not provide enough cover for loss or damage can leave you in a financially vulnerable situation.
- Loan applications: Valuations form a key part of securing a reasonable loan. The reports help lenders determine the LTV ratio and therefore the loan package they’re willing to offer.
It’s clear that the benefits of a property valuation ultimately justify the costs in a number of circumstances.
Summary
The costs of property valuations often put people off, but these services are extremely useful for anyone with an interest in a property.
An independent property valuation is the most trusted method of determining a property’s value. Certified Practising Valuers registered with the Australian Property Institute apply years of experience to reach accurate final figures.
The costs of a valuation will depend on the purpose of the report and required detail, the type of property, the location, and the experience of the organisation.
There are alternative and cheaper ways to estimate the value of your property, but they are not as accurate and do not serve as conclusive proof of value. An independent property valuation is a far more reliable service and can ultimately end up saving you money in the long wrong.
To learn more about how much property valuations cost, feel free to give us a call. At Darwin Property Valuations, our experts have decades of experience and a range of specialised knowledge.