Property valuation frequently asked questions.
What is a property valuation?
A property valuation is prepared and reported by a Certified Practising Valuer for a particular instructed purpose. The Valuer conducts a detailed inspection of the property and researches the relevant market sector for appropriate evidence to arrive at the appropriate value.
Why do I need a property valuation report?
There are various reasons for which a property valuation is required to prove the value of a property or as independent advice. Some examples are:
A disagreement of some kind – such as involving a contractual condition, a matrimonial settlement
An estate settlement
Property transfers between familiar parties
Whole or partial property acquisitions
What is the difference between a property valuation report and market appraisal?
Most Valuers are “Certified Practising Valuers” who by their membership of the Australian Property Institute must adhere to the International Valuation Standards for their preparation of their valuations and reports.
An estate agent most often produces a Market Appraisal and gives a range of values, whereas a Certified Practising Valuer arrives at a single figure valuation. A valuation report can be used as expert evidence for a range of legal purposes, whereas a market appraisal does not have the same qualification.
Do I need to use a qualified property Valuer?
The nature of the valuation assignment will determine if a valuation is necessary, but in most instances where the matter is of a legal nature, a Certified Practising Valuer will be required. If the property to be valued is of a “specialist” nature, it would be wise to seek the advice of a commensurately experienced Certified Practising Valuer.
How long does a property valuation report take?
The time taken for a valuation report depends on the simplicity or complexity of the task, the type of property asset and the interest that is to be valued. Valuations of “specialist” properties will often take some time, whereas the current market value assessment residential property should require a much shorter time frame.
How much does a property valuation report cost?
The cost of a valuation varies according to the purpose, the nature of the property, the required time involved, the availability of sales evidence; and in some cases other expert advice. Fees are agreed in writing between the Client and the Valuer and form part of the Valuer’s instructions.
What is the life of a property valuation?
Most valuations have a life of 90 days.
Why doesn’t the sale price match the property valuation report price?
There can be many reasons for this:
The valuation is as accurate as possible for the circumstance based on the evidence of recent sales, but the Valuer cannot forecast any “special value” that a prospective purchaser may attach to the property beyond its assessed market value or the occurrence of further evidence between the valuation date and the sale date.
The Valuer cannot forecast the extent of buyer competition that a property may generate
The purchaser may attach some “special” value to the property beyond its market value.
The terms of the sale might be different to the valuation instructions.
The difference in timing between the valuation and the sale; and the possibility that the market direction has changed
Sudden changes can occur in legislation, government policies, planning controls, homebuyer grants and other external influences, which were not known nor anticipated at the time of the valuation.