How to get a property valuation report?
Getting a property valuation should be the first move of any investor. It’s a proven set of methods to calculate the fair market value of any property. An accurate valuation could both save or help make you money in the real estate market. That’s why certified valuers in Darwin are among the most sought-after and highly qualified professionals in the industry.
t’s a volatile market that takes specialised knowledge to navigate successfully. The continuous training of a Certified Practising Valuer (CPV) keeps them prepared to manage every need of the modern property owner or investor.
An independent property valuation report:
- can be performed on any kind of property
- combines market research with financial analysis
- is submittable for various legal or tax-related purposes
- should be tailored towards the customer’s needs
The potential benefits of a good valuation include establishing the perfect sale or rental price, informing your investment portfolio decisions and making sure you don’t overpay on a sale. This only scratches the surface of why valuations are essential and the kinds of services available.
So, whether you’re a business owner, a prominent investor or looking to become a homeowner, you’ll want to know as much as possible about the valuation process.
How to develop real estate valuation reporting
There are multiple services aimed at valuing property. That includes bank valuation, real estate appraisal and, of course, independent valuation. The trick is that only the latter can guarantee accuracy and objectivity. This is due in part to the methods that CPVs use in developing reporting.
Most properties are valued using some combination of:
- the direct comparison method
- the cost summation method
- the capitalisation method
Each applies in various degrees to all manner of valuations, for everything from commercial to industrial property. As valuations vary in scope, complexity and purpose, certain services may call upon either a short or long-form valuation report.
For starters, the direct comparison method is much the same as the name suggests. It involves a physical inspection of the subject property, as well as exhaustive market research and comparisons.
This includes analysing:
- recent sales of comparable properties
- the age, condition and usable space of the property
- local zoning restrictions
- environmental and economic risk factors
- access to local amenities
The rest of the process focuses on financial analysis.
Cost summation compiles and reviews the cost of developing the property, including any improvements. On the other hand, the capitalisation method analyses net income generated by the property to assist in uncovering its market value.
How do I get a new property valuation report?
The only way to ensure the accuracy of your report is to work with a CPV or licensed, independent valuer. Their combination of training and practical experience is unique in the industry. Every CPV is equally qualified to determine the value of a residential, industrial, commercial or retail property.
What most distinguishes a CPV from a bank valuer or real estate agent is impartiality.
Real estate agents are concerned with renting or selling property. An appraisal from an agent is based on their own opinion of fair market value, as well as their market knowledge. Finally, they earn a commission from the successful sale or rental.
In other words, they have a vested personal interest in the result of the appraisal.
Meanwhile, bank valuers work on behalf of the bank. They aim to ascertain whether the sale of your property will cover their expenses if you fail to pay your home loan. Both instances represent a conflict of interest.
CPVs, however, are:
- trained by the Australian Property Institute (API) to be objective
- qualified to develop legally certified valuation reports
- experienced and have good moral character
There are also CPVs that are specifically qualified to handle plant and machinery or business valuations. Only a CPV can offer this wide range of valuation services and assure accuracy across the board.
Examples of property valuation services
As we’ve touched on, valuations can be more complex or multipurpose than simply appraising a building for a sale or rental. Though most valuations use similar techniques, the depth, complexity and pricing may vary greatly.
Examples include:
- valuing an entity’s assets or internal accounting operations
- providing industry-related advice for various legal proceedings
- advising clients on project management or their investment portfolios
- valuations for property tax such as capital gains, land tax or stamp duty
- valuations for litigation purposes, including compulsory acquisition, family law, probate and property resumption claims.
A good independent valuer can perform all of these services to the same level of accuracy and quality. CPVs are ultimately the perfect partner for advising any property investor on their most critical decisions.
The price of any valuation is also tied to the scale and complexity of the service. Residential valuations, capital gains valuations or rental review valuations all require a different level of research and analysis from your CPV.
Summary
The potential value of an independent property valuation cannot be understated. It’s an investment in a specialised skill set that can save you thousands or ensure you get the optimal sale price.
Licensed valuers are trained by the API to ensure accuracy, impartiality, quality and transparency across every stage of the valuation process. Your final report is an in-depth statement of value that illustrates the methods involved throughout.
The process can be performed for everything from industrial and retail property to business entities, their assets and more. CPVs can advise you on your investment portfolio, corporate decision making and rental negotiations. They can calculate your property tax, review your financial statements or conduct various forms of valuations for legal purposes.
For more information on the scope of property valuations, call one of our qualified valuers today.
