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  • What Can I Expect in a Property Valuation Report?

FVG Property Consultants and Valuers were incorporated originally as a pure property valuation entity. That is, providing property valuation services. Before explaining what you can expect in a property valuation…what is a valuation? There will be many differing definitions and discussions, and from many and varied sources of expertise. Simply, in Australia, there is only one professional that provides legal property valuations and hence, property valuation services or occupation, that being a Certified Practising Valuer.

What is a valuation? A possible answer is the knowing of what an asset in particular, property asset, is worth and what determined that value. The answer could just be market forces at a given point of time. Why is a property valuation so important? It determines a level of value of which may be considered as a prerequisite for a person’s decision making process.

Property valuation services allow the instructing party to choose property investments for his/her portfolio or occupation. It allows the appropriate price and offer of terms to be decided upon, it allows the individual to make associated decisions such as expected return base, finance considerations, associated costs such as stamp duty and legal costs to be projected and lastly, it translates in what the individual is worth at a given point of time – unlike the equity market, where you can gauge value daily.

By obtaining a property valuation from FVG Property, the investor or property participant does not need to pay more that an asset is worth in the market. This statement is logical and very obvious, but how many times do you find participants being swayed by individuals paying in excess of current market parity? It is not that simple to suggest that value is in the eyes of the owner. Value is determined by a property valuation with set principles of arriving at that value.

Our property valuation services provide that legal assurance of the level of value. Those investors and participants that are aware of our property valuation services and property valuations know what to expect within our reports, and are not emotionally attached to a transaction and are aware that a property valuation is not just a figure; it can be a range. It may reflect analysis as to projected cashflow or added value.

A valuation report may provide a considered level of value of which is backed up by reality and supportable market evidence of which gives a real sense of level of value and disregards any uncertainty and non growth in value and cashflow that may not have been thought of. FVG Property within our property valuation services, provide property valuations with value assessment of which are critiquelysubstantiated and are not just property values that are justified by merely using the argument that there will be other property participants around that will pay a higher price in the future. Property just does not work like that and even moreso, an example would be current market forces in July 2013, compared to pre GFC with a 10%-20% drop in level of value being evident. Property valuations and the process itself is an extremely hard profession. If it is done correctly, it is more than a science and in fact, is an art form.

For more information please contact us