In Australia, the importance of independent property valuations should never be underestimated. This independent service provides owners, buyers, and sellers with the best method of determining the value of any form of real estate.
The legally-accepted nature of these reports is what makes them so valuable. They do not last forever, and up-to-date valuations are needed in most cases.
Valuations in the Northern Territory are performed by Certified Practising Valuers (CPV) who are registered with the Australian Property Institute (API). They follow international valuation standards and are careful to meet every regulatory requirement. Each report is custom-made to suit clients’ circumstances and serves as definitive proof of value.
Valuers consider many internal and external factors. By going through every relevant consideration and applying a combination of reliable methods, they can prepare accurate property valuation reports.
These reports can be used in a wide variety of scenarios, but you’ll need to make sure that your valuation report’s usefulness has not expired.
How long does a property valuation report stay valid?
For the most part, property valuations are written in line with the market conditions at the time of the assessment. This means that when market conditions change, the report will no longer be valid.
While expiry dates are not explicitly indicated, a valuation report will generally stay valid for 3-6 months. After that, you will likely need a re-evaluation to represent the value of your property accurately.
If there are sudden and significant market changes that take place shortly after the valuation, you may need an updated report. If the changes to the market have directly impacted your property, the valuation report will no longer serve as conclusive proof of its worth.
There are also cases where a retrospective market valuation is needed. This is when the value of a property is determined for a date already passed. Valuers use their thorough understanding of the market to calculate what the property’s value was at the specified date.
How long will a re-evaluation process take?
If your valuation report has run its course and you need a new one, the process will not differ much from the original valuation.
The time it takes to complete will depend on the purpose of the report and the type of property being assessed. The inspection itself can take between 30 minutes and a full day, but it may take up to a week for your report to be ready as valuers need to ensure all calculations are accurate.
Long-form reports are likely to take longer than short-form reports to complete. Bigger properties with additional considerations may also have a longer process.
Your assigned valuer should be able to give you a clear indication of how long the process is likely to take.
How can I make my re-evaluation higher?
Once an inspection has been complete, you will still need to wait a few days before receiving your valuation report. The following factors impact how long you will have to wait before receiving the final valuation report:
- The experience of the valuer
- The scope of the valuation
- The type of property
You can expect to wait around 2-3 days after an inspection for a residential property valuation report. A commercial property valuation can take up to 5 days for the report to be completed.
There may be other factors that come into play and cause additional delays, but you can generally expect to have your report ready within 10 days after the inspection.
In conclusion
A valuation report serves as the best way for owners, buyers, and sellers to determine the true market value of a property. Valuations are performed by Certified Practising Valuers (CPV) who are registered with the Australian Property Institute (API).
They apply specialised insight to prepare precise valuation reports that serve as definitive proof of value for all sorts of properties. Valuation reports, however, do not last forever.
In general, property valuation reports stay valid for approximately 3-6 months. As the real estate market is subject to constant change, up-to-date valuations are needed to determine the true market value of the subject property.
In some cases, a retrospective property valuation is needed to determine the value on a specified date in the past. Valuers have an extensive understanding of the market and therefore have the tools needed to prepare precise retrospective valuations.
The three most popular methods of assessing a property’s value are the direct comparison approach, the income capitalisation approach, and the summation approach. Valuers use a combination of these methods to prepare accurate reports.
A valuation report is ultimately a comprehensive and objective analysis of the subject property. The thorough and detailed nature of the documents is hugely beneficial for owners, buyers, and sellers of property.
For more information on how long property valuations are good for, feel free to give us a call. Our highly qualified experts are more than happy to answer your questions.
