Introduction To Property Valuation
You may be looking to buy a property or simply make sound investment decisions. A valuation from a property valuer in Canberra is what you'll need. And no, we're not talking about a real estate appraisal.
The process of determining your property’s value can be daunting to say the least. There are many possible pathways to this, from real estate agent or bank appraisals to a valuation from a certified valuer. But which one will give you the most accurate results?
It can be difficult to avoid bias, personal agendas or conservative estimates in the property game. For this reason, a detailed, expert valuation from an industry professional with particular knowledge of your chosen area is your best bet.
Carrying out a valuation is a complex process, leveraging multiple approaches and a huge range of data on your property and local area to determine the results of your final valuation report.
It’s vital then to understand the difference between these approaches, what exactly goes into a valuation report and why not all routes to determining your property’s value are necessarily equal in accuracy.
What Does Property Valuation Mean?
Valuation is a tried and true, guaranteed means of arriving at the most accurate possible value for your property. Licensed valuers are equipped to swiftly carry out an in-depth analysis of your chosen property based on a wide range of contributing factors.
The result of the investigation is an exhaustive report; a legally certified document applicable for use in various legal, private and formal affairs. These reports are developed by independent experts with specialised knowledge of your area and the property world at large.
Valuers employ a combination of local property data, research and information concerning your specific property, its condition and any pending developments in the area. These services span an extensive range of property types, including but not limited to:
What Is The Purpose Of A Property Valuation?
A thorough valuation is the ultimate tool for guarding the value of your investment or buying and selling property. It represents peace of mind concerning the value of your property.
Whether you’re buying, selling or offering a space for rent, a valuation will deliver the perfect asking price, help you budget or identify the appropriate market-related rental fee.
How Are Property Valuations Done?
Valuers will utilise a meticulous combination of three methods to ascertain the value of your property. Your valuer is full trained to determine what best suits the needs of your valuation. Either way, the process is extensive and involves an in-depth examination based on over 200 internal and external variables.
This could include anything from your neighbourhood, the asset's condition or the value of the underlying land.
First up? The Direct Sales Comparison method. This, as the name suggests, involves directly comparing the asset in question to similar properties in the local market.
Next, we have the Cost approach. The Cost (or Summation) approach is a secondary technique used by API certified valuers. In essence, this comprises the addition of your property’s value to any and all improvements made to said property.
To wrap things up we have the Income Capitalisation method. This is a commercial valuation approach designed to enable the investor to plan and receive their desired future income. It involves determining the value of the property based on rental income.
Who Can Perform A Property Valuation?
To qualify as an accurate reflection of your property’s value, valuations should be conducted by a certified valuer. They are proven industry experts geare./d to issue you with a fair and unbiased determination. Valuers sport the expertise needed to perform independent research and finalise your valuation report.
In order to ensure the reliability of the service, it's crucial to secure the aid of a valuer accredited by the Australian Property Institute (API).
As representatives of Australia’s chief entity in the industry, Certified Practising Valuers (CPVs) have a reputation for precision and impartiality in their work.
Beyond that, you’ll want to seek out the services of a valuer with demonstrable knowledge and experience in your area. This guarantees a tailored approach based on the unique characteristics of your property’s surroundings. That gives you and others the full picture regarding its true value.
Why Not Go With An Estate Agent?
The answer is confidence in the accuracy of your valuation. Beyond that, you'll need a highly detailed document admissible for all kinds of legal administration. Only these reports can ensure you're covered for the full spectrum of possibilities.
While estate agents sport a wealth of knowledge and expertise, a lack of bias can never be guaranteed. After all, an agent’s goal is to make sales.
A CPVs’ expertise is specifically tailored to reviewing structure, quality and cost versus various external factors to arrive at its true value.
That’s not to mention the esteem CPVs are held in within the property world. It’s a well-earned reputation based not only on the long road to completing their certification or their deep wells of market-related knowledge, but a proven history of professionalism, accuracy and honesty throughout all stages of the valuation process.
This includes:
- Residential
- Commercial
- Industrial
- Various specialised property types
Property valuation is the truest method of deriving what your property can do for you. It accounts for everything from economic and social trends, government policy and location itself.
There’s no better way to secure the future of your property today
Summary:
A certified valuation is the most accurate and dependable avenue for understanding what your property is worth. No other service employs the same combination of research and proven technique.
It's paramount to ensure you enlist the services of a valuer accredited by the Australian Property Institute in order to receive a report that is guaranteed to be free of bias. This enables you to minimise the risk on your investment or generally make sound, research-backed decisions concerning your property, its future and current standing.
Through a combination of direct comparison against the surrounding market, determining any value added to your asset and considering rental income, a Certified Practising Valuer will deliver a comprehensive report gauging all contributing factors.
For details on valuation services within Canberra, or to request a free instant quote, speak to one of our highly qualified valuers
