property valuation faqs
What information do you obtain within the valuation report itself?
- Terms of reference
- Locational commentary, attributes, linkages, detrimental factors
- Relevant date of value
- Legal description
- Land details; information of the valuer’s physical on-site measurements
- Building area; information of the valuer’s physical on-site measurements
- Services applicable
- Planning zoning
- Environmental Statement
- Improvements Statement
- Comparable sales evidence; an extract of the most comparable and fitting sales
- General comments (if applicable)
- Any value assessment that you, our client, requests
How do you the client, benefit?
Once you have received the valuation, you are an informed person, when you speak to anyone relating to your property you will, at that given point of time, be fully aware of the market, its market forces and your property’s value. If you are contemplating selling your property, you will be in control of the sale process, as well as the fact that you now have a legal document, and have received independent professional advice, with that entity having no vested interest. A valuation report is a professional and legal assessment of the value of your property.
What’s my property worth?
It is common for the instructing party to ask the valuer this question as soon as the valuer has inspected the subject property.
The truth is at that time the valuer doesn’t know what the property is worth. The inspection is the first step of many that the valuer must go through before a value is determined.
What does the valuer consider in determining the value of my property?
The valuer measures the land size and improvements from the outside of the external walls to determine square metre size of the improvements. The external measurement is standard throughout the industry. Usually no interior measurements are required. The valuer takes notes concerning the features of your home such as room layout, number of bedrooms, baths, etc. The valuer also makes a determination of the general condition, appeal and functional layout of your home. All of these items are taken into consideration in the valuation report. Additionally, the valuer has consideration to the marketability, local economy aspect, market dynamics and market segments.
Does the valuer do a whole building inspection?
No. The valuer is not a whole house inspector. An Engineer, Architect, Electrician, Plumber, etc. are deemed to have expertise in their areas. The valuer walks through the house to get an idea of the general condition and accommodation. A valuation is not a guarantee of condition. You are encouraged to seek the advice of experts if you have any questions about the structural aspects.
How long does a valuation take?
The physical inspection of a typical property takes between ten and fifteen minutes. Sometimes an inspection can take longer if the dwelling is difficult to measure or has some unique features that require additional investigation by the valuer.
After the initial on site inspection of your home, the valuer inspects comparable sales of similar type properties within the immediate vicinity. The purpose of this inspection is to search for other properties that are similar to the property being valued that have sold within the last three to six month period. When the field work is completed, the valuer completes the report and rationale and reports to you under the terms of reference of the Australian Property Institute.
What qualification does a valuer have?
A valuer must complete relevant tertiary level qualifications and be licensed or registered by the appropriate state body to practice as a Certified Practising Valuer. Only Certified Practising Valuers are recognised by courts of law as expert interpreters of the property market.
How much does a valuation cost?
The cost of a valuation can vary according to property type, location and size, as well as the purpose of the valuation and length of report required. Valuation fees are usually tax deductible if the property is held for investment purposes. The cost of this professional advice is relatively small compared with your investment and the potential savings and peace of mind it can provide you.
If the valuer is not from my area, how can they properly value my property?
Certainly a valuer should be familiar with specific areas or neighbourhood to value a property. The misconception is that only someone who lives “close by” would know the area. At FVG Property we value throughout Melbourne and our valuers have completed thousands of valuations. We have valued in all neighbourhoods in our service area.
Is a valuation different from a council rates notice?
Yes. A rating valuation is prepared for the purpose of assessing rates and land tax of a property. It does not usually involve an internal inspection and is prepared at a particular date. The relevant date of valuation on your rates notice can vary depending upon where you live. This valuation cycle can be 12 months and up to 4 years in some cities.
An independent valuation and real estate agent’s appraisal are documents that are created for different purposes. An agent uses his expert local market knowledge to arrive at a selling figure which the property should be placed on the market. A valuation is carried out by a qualified property valuer for a variety of clients including banks, solicitors and individual property owners for a wide range of purposes.
I am buying a property, do I need a valuation?
A valuation before you buy a property can provide you with an independent opinion of its value. This can help you negotiate the right price and save you money. Valuers will check the property’s title and zoning as well as provide a risk analysis which highlights any potential opportunities or threats.
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I am selling my property, do I need a valuation?
Before you sell your property, a valuation can provide you with an independent assessment of current value before placing your property on the market. This figure may be different from what a real estate agent says your property is worth. The valuation report is a document that can be used as a negotiation instrument to ensure you do not sell a property for less than it is actually worth. A valuer can also provide you with tips on how to add value to your property.