About Independent Property Valuations
There are many paths to determine the value of any property. Whether it be bank valuations or appraisals done by real estate agents. However, these come with some serious limitations. It’s hard to assure a lack of bias. It can be even tougher to guarantee your valuation is a true reflection of the property market. So, are those your only options?
No. That’s where independent valuers in Sydney come into play. Any budding property owner needs a document detailing exactly how the value was calculated. They need something reflective of their property’s surroundings and conditions.
More so, they need a report that goes beyond gearing them for buying or selling. One that’s legally recognised, matches the legislation and prepares them for their tax obligations.
To make informed investment decisions, one would need to:
- understand an independent valuation of property and how it works
- know the difference between independent property valuers, appraisals and bank valuers
- have a sense of the cost of a valuation
- and learn what qualifies someone to perform a thorough valuation
The first mistake many investors make is to perform all the research themselves. You may be an experienced property buyer, but only a licensed valuer can cover the full spectrum of data you need.
What is an Independent Valuation?
A valuation is a complex mix of research and technique. These are combined to arrive at the true current or retrospective value of any property type. Valuations may involve physical inspections, reviewing local property data, all manner of calculations or a combination of the three.
They can be performed for:
- commercial
- residential
- and industrial property types
That’s only the start. Our services can cover you for all of your family law, building replacement, rent and capital gains tax valuation needs.
No matter your situation, the final report is remarkably comprehensive. This is critical in reducing investment risk. It provides you with everything you need to know about the asset in question. Much of it is drawn from exhaustive databases you won’t benefit from anywhere else.
Current Vs Retrospective Value
Depending on your needs, you may want your asset valued at either its current or past value.
Current market value is most relevant when buying or selling. This is based on the present state of the asset and valid for 90 days after the valuation. This ensures accuracy. Current market conditions are constantly changing, after all.A retrospective valuation refers to one carried out based on a specific past date. This is vital to illustrate the changing value of any asset.
Independent Valuation, Real Estate Appraisal or Bank Valuation?
To understand the difference between the three, you’ll need to understand who carries out an independent valuation and what makes them qualified.
If you want accuracy, you want a certified property valuer. This is your first go-to for a professional trained on every corner of the market. They are licensed, educated and regulated by the Australian Property Institute (API).
The API is the most esteemed name in the Australian property business. It carries with it a mark of quality and transparency. It’s a guarantee of objectivity and well-proven methodology. It’s the assurance that your valuation will meet the needs of all the relevant legislation.
What About Real Estate Appraisal or Bank Valuation?
This is where the objectivity provided by certified valuers really stands out. Real estate agents are trained in the process of buying and selling property. Not only that, but they earn commission off these sales. They have a personal interest in the value an asset is set at.
Furthermore, the value they set is more of an estimation. It’s not based on the same rigorously tested methods used by certified valuers. Estate agents also cannot issue you with a certified report admissible to the courts and others.
On the other hand, bank valuations are done to determine the risk inherent in providing a loan. They are known to be purposefully conservative.
Only a licensed independent valuer is equipped to calculate the true market value without bias.
How Much Does an Independent Property Valuation Cost?
This is one area where it’s hard to offer a straight answer. There are a number of factors that could affect the price of your next valuation.
Your valuer will customise your report as per your needs and the specific demands of your asset. The more details required, the higher the price is likely to go. A full inspection versus a remote valuation could increase the price too.
All in all, the cost of your validation is fully dependent on the scale and motive of the report. A certified valuation professional will assure your service is suited to the circumstance.
Final Thoughts on Independent Property Valuation
It’s clear that there’s a lot to consider when looking for a valuation. Who’s most qualified to carry it out, its cost and the specific needs of your asset all require careful attention.
You’ll want to hire the services of a licensed valuer trained by the Australian Property Institute. They sport years of training, access to a wealth of data and a stamp of quality that only the API can provide. This is how you ensure your valuation is unbiased and totally accurate.
When it comes to the kind of valuation, remember that:
- current market value refers to your asset’s value today
- and retrospective market value is your asset’s value at a specific past date
The former is crucial when buying or selling. The latter is used to paint a picture of your asset’s growing worth and is important when determining your tax obligations.
Finally, the cost of your report depends on your needs and the complexity of the service. To get a free quote on your next valuation, reach out to one of our valuers today.