Owners and anyone else with a vested interest in a subject property can all stand to benefit from getting an independent valuation report. The purpose of such a service is to give people and organisations definitive information regarding the existing market value of a piece of real estate.
A valuation report from a qualified professional can provide all sorts of benefits for individuals and companies. The only downside? Like with most valuable services, it does not come free. The cost of a valuation report in the Northern Territory will depend on several different factors.
In general, the information included in a valuation report will depend on its scope. A report can:
- come in short form or long form
- be for residential, commercial, industrial and rural properties
- be used in a number of legal, private or business circumstances
These reports are recognised as official proof of market value; making them incredibly valuable. There is no set cost for valuations but going over a few different considerations can give you a clearer idea of how much you may end up paying.
How much does a property valuation cost?
So how much should a property valuation cost? The costs of a report will vary greatly between services and firms. A few of the factors affecting the final costs are:
- The type of property
- The size of the property
- The scope and purpose of the report
- The experience of the valuer
- The location of the property
A more complex, lengthy and detailed report will naturally cost more than short-form reports. The more effort that goes into the preparation of the report, the higher the price is likely to be.
The most reliable method of determining how much you will have to pay is to request a quote. The quote will detail the pricing structure and provide clarity on what you're paying for and how much it's going to cost.
Comparing quotes from a few different firms can help you find a trusted company with services that suit your budget.
What about free online valuations or real estate appraisals?
Prices can often be a stumbling block. The cost of a valuation report may have you considering using an online valuation tool or getting a real estate appraisal from a realtor, but these are not quite the same.
Online valuation tools
An online valuation is an internet-based service that provides estimations of market value for real estate. No inspection takes place; instead, information is entered into an automatic valuation model that uses existing property databases to calculate the market value.
Most online tools are available as a free service, but they do not have nearly the same standard of accuracy as independent property valuations. A report from an online tool is also not recognised as official proof of value and can't be used in any sort of legal dispute or business negotiation.
Real estate appraisals
A real estate appraisal is a service offered by a realtor assisting you with the sale of a property. Realtors are generally well-versed in the ever-changing conditions of the housing market, but do not have the same qualifications as professional valuers.
Realtors also stand to earn a commission on the sale of a home. The higher the value, the higher the commission. As such, there may be an internal bias at play. Appraisals are also not accepted as official proof of market value in the eyes of the law.
The benefits of paying for an independent property valuation
So why choose to pay for a valuation? The short answer is that valuation reports can be incredibly useful in all sorts of circumstances. A few of the main reasons people choose to pay for a valuation are:
- The most reliable and trusted method of finding market value.
- Reports are prepared by Certified Practising Valuers (CPV) registered with the Australian Property Institute (API); highly qualified professionals.
- They are written per every relevant and legislative requirement.
- CPV-written reports are accepted as conclusive proof of market value in the eyes of the law.
- A valuation report can serve as valuable pre-sale or pre-purchase guidance.
- Reports lead to swifter settlement and mediation negotiations.
- Valuation reports can guarantee fair compensation for compulsory acquisition cases.
- They can also provide a clear outline of the insurance coverage needed in case of loss or damage.
Ultimately, valuation reports allow for informed decision-making and much improved strategic planning surrounding a property or organisation.
Summary
For those with an interest in property, independent valuation reports are one of the most sought-after services. They provide clear and definitive proof of market value according to the relevant conditions.
The cost of a property valuation will depend on the type of property, scope of the report, location of the property, and experience of the valuer. Requesting a quote will give you clarity on how much you’re likely to pay.
Free services such as real estate appraisals and online valuations can be useful but are not nearly as valuable as independent reports. Legally-recognised valuation reports are far more precise and ultimately offer a much more detailed analysis.
If you would like to learn more about the costs of independent valuation reports in the Northern Territory, feel free to give us a call. A member of our highly qualified team would be happy to assist.
