When you order a property valuation in Darwin, it is usually for something important and official. This is what separates a valuation from an appraisal. You probably won't receive a report of your property’s value from a real estate agent, but you will from a certified property valuer. This document will not only state market value, but it will include an extensive amount of useful information for yourself and any other intended recipients of the report.
What is a property valuation?
A property valuation is a formal examination. It is based on evidence and objective analysis. This examination will be conducted by a qualified property valuer, usually with a certification from the Australian Property Institute (API).
The resulting valuation report can be used for many purposes including:
- Taxes
- Divorce settlements
- Family law
- Deceased estates
- Compensation
- Insurance
- Mortgages
- Pre-sale and pre-purchase advice
The format of the report, its requirements, and the standards that it must adhere to will depend on the purpose of the valuation.
What is a property valuation report?
A property valuation report is a sworn legal document. It varies in length depending on why the report is needed and who the end user will be.
According to the Royal Institution of Chartered Surveyors (RICS) there are certain details that must be included in a valuation report. This ensures that the document is of professional quality and best serves the needs of the client. According to RICS and the International Valuation Standards Council, this is what you can expect in your property valuation report:
Valuer information
Reports will include information about the valuer themselves. This is more than just their name. It will be their qualifications, API number (if they are registered and certified with the API), company name and other necessary information. This is especially important when it is a property valuation for tax purposes or legal use. These details will then be used by the relevant authorities to confirm that the valuer meets their requirements.
Client details
While this may not seem important for a client, this is crucial for the sake of confidentiality. If you order a valuation report, as it is a legal document, regardless of purpose, the contents will not be shared with anyone who is not named in the report.
The person who ordered the report may not necessarily be the owner of the property. A report might be ordered by a legal representative. This could be a lawyer, a representative of a deceased estate or another authorised party.
Purpose of the valuation
As mentioned above, there are several reasons to conduct a property valuation report. This will be disclosed in the report. It will inform the reader of the context of the report and why a valuer has approached and formatted it the way that they did.
Address and identification info
This is important to confirm that the report was made for the correct property. If there is an error, a new valuation may need to be completed. For most reports, the address is all that is required. Other relevant information may also be included such as the named owner on the title, the name of the property, lot number, heritage status and certification.
Full Description of the property
This may form the bulk of the report. In its early pages, a summary of the property is found, and then throughout the report, the valuer will go in-depth into the features of the property. This will include:
- The area of the lot and structure
- Name of the local government area
- Number of rooms, bathrooms, and car spaces
- Year of construction (or an approximation)
- Details of the environment and location including distance to amenities
Date of the valuation
The date that the valuation takes place is essential for several reasons. For one, it will indicate whether this is a current or an outdated report. In most circumstances, a property valuation report is only valid for up to 90 days.
At times a valuation will need to be completed so that the stated market value is correct to a date in the past. This is known as a retrospective property valuation. In this case, both the date the report was made, and the valuing date will need to be included.
Method of valuation
There are a number of ways a property valuer can approach their work. How the valuer has determined the market value of the property will affect the accuracy of the report and its relevancy for the purpose of the valuation.
It is very common for a real estate valuer to use more than one method. Here, a valuer will then need to state which method was their primary and secondary. The most well-known and used methods are the comparison approach and cost approach.
Type of valuation
Outside of the method, there are a few types of valuations that can be performed. This refers to the manner a valuer will conduct a valuation. A valuer may complete their work, entirely with online resources or they may perform a full inspection. This will affect the precision of the final market value.
Local market data
Along with the description of the property, the majority of the report will be a description and analysis of the local property market. As many external factors affect property values, the report may include data on the market on a national and state level as well.
Comparable data is also included when using the comparison approach. This will be the addresses, sizes, and sales/lease amounts of 3 to 6 comparable properties.
How to get a property valuation report
If you want to receive a property valuation report, the best option is to enquire with a local property valuer. While there are options such as online valuations, they may not be as accurate or appropriate for legal uses.
When you make an enquiry about a property valuation, they will ask a few questions to generate a tailored quote. No report is the same and thus there are no set prices for any proper valuation service.
For more information, or to book a property valuation, contact our team today. We can answer questions you have as well as provide a free instant quote.