If you’re wondering if sworn valuations are any different from registered and independent property valuations, the answer is no. In fact, the terms may be interchangeable. A sworn valuation can be hugely beneficial for individuals and organisations who own or are looking to own property.
There are plenty of reasons why you might consider getting a sworn property valuation. An official document with a definitive monetary value can be beneficial for settlement negotiations, dispute resolutions, pre-purchase advice, taxation reasons, and more. In such cases, the highest degree of accuracy is needed, and services like real estate appraisals and online valuations just don’t have the same level of reliability.
Real estate valuation services in Sydney cover all sorts of properties and purposes, and reports are custom-made to suit clients’ needs. But who is it that writes these reports?
Sworn Valuers
The property expert in charge of assessing its worth is known as a sworn valuer, also known as a Certified Practising Valuer.
Only professionals registered with the Australian Property Institute are qualified to perform sworn valuations. As these documents are often used in courts and legal proceedings, valuers are careful to meet every regulatory and legislative requirement.
Sworn Valuers follow the guidelines set out by the Royal Institution of Chartered Surveyors (RICS). As such, reports are in line with the relevant international standards. Each expert is committed to principles of honesty, integrity, and transparency across every task. Certified Practising Valuers consistently strive to be as precise as possible in their calculations.
When you request a Sworn Property Valuation, you know you are getting a service from a highly qualified professional that can be relied upon in a variety of circumstances.
What sets sworn valuations apart from real estate appraisals and online valuations?
You may be drawn to other valuation services that seem easier and cheaper, but it’s important to understand why these are not as prized.
A real estate appraisal is usually performed as a free service by a real estate agent who naturally has an inherent bias in the outcome of the appraisal.
While realtors may have valuable insight, an appraisal does not serve as an official report and will not help you in cases where you need a certified document. To reach his final estimate, a realtor looks at market conditions and the property itself. At the end of the day, however, it is just not as accurate as a report from a registered firm.
Online property valuations are even less accurate than real estate appraisals and should only ever be used as a guide for those in the beginning phases of buying or selling property. An online service will use publicly available data from property databases to reach its conclusion on the property’s worth.
So, while Sworn Property Valuations may be more costly, they are far more valuable and hold a much higher degree of legitimacy.
How much do sworn valuations cost?
Valuation services are wide-ranging, so there is no universally applicable fee for all reports. A valuation fee usually depends on the purpose of the report, the type of property, and the size of the property.
The level of detail required is a good indicator of whether or not your report will be on the cheaper or more costly side of things. Some property types require a more extensive valuation that involves additional contributing factors and calculations.
Requesting a quote from a registered firm will help you gain a clearer understanding of the cost, as experts will tailor-make the quote to suit your needs. Comparing costs between firms can give you an idea of what the average price for a specific service is.
When would a sworn valuation be useful?
On many occasions, a sworn valuation will pretty much be your only option. As there are many circumstances where an independent and unbiased valuation report is needed, other types of valuation services will not be fit for purpose.
A few examples of this are:
Property Settlement Negotiations
A fair division of a property requires both parties to agree on the value of the subject property. As sworn valuations are entirely independent and based on objective evidence, it serves to benefit both sides and can significantly speed up negotiations.
Internal Accounting Valuation
An internal accounting valuation is a perfect way for business owners to get a clear picture of their current financial standing. By getting a report from qualified experts, owners can make more informed financial decisions.
Pre-purchase/Pre-sale Advice
Knowing the true worth of a property takes out the need for debate between prospective buyers and sellers. Sworn valuations lead to swift and amicable negotiations.
Insurance Purposes
In some cases, sworn valuations are needed to insure assets and property. Accurate valuations can help avoid the risk of being underinsured or overpaying due to unnecessary costs.
Capital Gains Tax
In cases where you’ve sold an asset for a profit, a sworn valuation can help determine the capital gains tax you need to pay.
Summary
Sworn Valuations are no different from independent and registered property valuation services. A qualified professional known as a Sworn Valuer prepares a detailed assessment to assign a monetary value to the property.
Such valuations are much more valuable than online valuations and real estate appraisals and hold far more benefits. As an official report, sworn valuations are accepted in courts and often used in litigation or legislative proceedings. The independent nature of a sworn valuation guarantees a report is not subject to any outside influence.
Such valuations have no set fee, and the cost is dependent on the type and size of the report. Requesting a quote from a reputable firm will give you a clearer idea of how much you might have to pay.
For more information on sworn property valuations in Sydney, speak to one of our qualified experts today.