If you are after a Property Valuation in Darwin but what to know more about property valuations before ordering one, then you have come to the right place. This article is a simple guide to discovering how property valuations work and who conducts them.

What is a property valuation?

A property valuation is an assessment of your property to find its value. This assessment may involve market research and an inspection of the property. Not all valuations require an inspection, but many do, and it is a much more thorough process compared to a market appraisal from a real estate agent.

Unlike appraisals, property valuations do not necessarily need to find the current market value. If required a property valuation can be created to report the market value of a property at any point in the past. This is known as a retrospective valuation.

When do I need a property valuation?

Property valuations in Darwin come in all shapes and sizes. They can be completed on any sort of property including rural, residential, commercial, and industrial properties. As valuations can be done on any type of property, the reasons for a property valuation can differ greatly from person to person.

Here are some common reasons for a Darwin property valuation:

• Calculating capital gains tax
• Settling property during a divorce or separation
• Determining Unit Entitlements
• Applying for a Probate grant/Handling a deceased estate
• Valuing plant & machinery for internal accounting, insurance, or other purposes
• Securing a mortgage loan

Who completes a property valuation?

A property valuation is completed by a property valuer. A property valuer in Darwin should be a Certified Practising Valuer (CPV), which is a certification that is only given to property valuers that are eligible according to the criteria set by the Australian Property Institute (API). This includes a university degree and 2 years of property valuing experience.

The NT Valuation Board of Review Panel also recommends a valuer that is registered with the Royal Institution of Chartered Surveyors (RICS). Membership with these organisations means a better-quality report that follows the guidelines of the International Valuations Standards Council.

How does a property valuer conduct a valuation?

There are two main ways property valuers in Darwin go about conducting a property valuation. These are a desktop valuation and a full inspection valuation.

Desktop valuation

A desktop valuation is a property valuation that is completed entirely from behind a computer. That means the valuer does not need to visit your property and instead only uses the available information on your property and the market from sources such RP Data to complete the valuation.

This is different from a free online valuation that relies solely on an Automated Valuation Model (AVM). The free valuations you’ll see online are usually AI-generated, which means they may have some inaccuracies or crucial information missing from the report.

When Darwin valuers complete a desktop valuation for your property it is still a reliable valuation. It has the added benefit of being much more convenient than a valuation that requires an inspection and is more affordable as well.

Full inspection valuation

When Darwin property valuers conduct a full inspection of your property, they are examining all the characteristics of your property that influence its value. They are also looking to confirm information that would have been available to them in their databases. If there are new revelations from the inspection, then the valuer can add this new information to their report and include it in their calculations of property value.

Property valuers use the following information to value property:

• The location of the property - this includes street details, environment, and the local economy
• The available local amenities and their distance from the property
• The age of the property, its condition and the date of any renovations or additions/li>
• The size of the property – the dimensions and the number of rooms
• The property’s accessibility – is it hard to find or access?
• The energy efficiency of the property.

This is not all a property valuer examines when conducting a full valuation. The valuer investigates everything that is relevant for the purpose of the valuation and would have an effect on the property’s value.

How do I choose a property valuer?

When you are looking for a property valuer in Darwin, you will want to opt for a valuer that is local. A local valuer will come with a lower price tag as there won’t be any added costs from the valuer’s travel. Even if the valuation is being completed via desktop the valuation will be far more accurate when done by a local property valuer. Only a valuer that is local to the area will fully be informed of all factors and local influences on the property’s value, such as council rates, and regulations

You should also ensure the valuer is a specialist in the type of property you own. A commercial property valuation and a land-only rural property will have different methods and considerations used for the valuation.

For more information, why not contact one of our local Darwin Property Valuers today.