The value and importance of property valuations should never be underestimated. Investors, homeowners, portfolio managers, and anyone else with a stake in real estate stand to benefit from real estate valuation reports.
Independent valuations in Perth serve as a tool to find the market value for a range of different properties. From residential family homes to commercial retail stores, valuations serve a purpose across the board.
What is a property valuation report?
A property valuation report is an independent assessment of a subject property’s current market value. The market value is based on a wide range of internal and external factors that valuers carefully review.
Valuation reports come with attached legitimacy. A report is accepted as proof of market value and serves as a legally accepted document. This makes it incredibly useful in a range of different circumstances.
From legal disputes to pre-sale guidance, valuations are essential for those involved in real estate. These unbiased and objective reports can be used for private, business, or legal negotiations or transactions.
Who can prepare property valuation reports?
Only a Certified Practising Valuer (CPV) registered with the Australian Property Institute (API) can prepare independent property valuation reports. The API grants accreditation to experienced and qualified members with a university-level degree.
Qualified valuers are uniquely aware of market movements and have access to a range of real estate and property databases. They are adept at considering a range of factors and applying a combination of reliable methods to find the market value for a subject property or asset.
Valuers are also careful to meet regulatory and legislative requirements when preparing reports. As such, valuation reports are accepted by the Australian Taxation Office (ATO) and courts across the country.
What are the advantages of property valuation reports?
So how exactly do these valuation reports benefit individuals and organisations? The advantages are wide-ranging.
A few of the main advantages that valuations provide are:
A definitive, clear, and accurate outline of market value
The most important function that valuations provide is an exact sense of what the real estate’s market value is. Finding the market value of a property without professional assistance is not easy and may result in ill-informed decisions based on incorrect data. With an independent valuation, you’re getting an unbiased and objective assessment of value from a qualified expert.
Guidance for the potential sale or purchase of a property
Pre-sale/Pre-purchase valuations are one of the most popular services offered by valuation firms in Perth. The insight offered in reports allows property owners/buyers to make an informed decision about whether to sell or purchase a subject property. Don’t rush into sale or purchase decisions, first, check the results of an independent valuation.
As valuation reports are seen as official proof of market value, they’re beneficial to all parties subject to negotiations surrounding the property. With all sides having a clear understanding of market value, the negotiations can move at a swifter rate. Sales, settlement, merger and acquisition negotiations and more all move at a much faster pace.
Mortgage and re-financing applications
Whenever you’re applying for a loan, financial lenders and banks need proof of market value. They use this information to determine the loan-to-value ratio which informs lenders of the specifics of the loan package they’re willing to offer.
Choosing the appropriate insurance
Property valuations are also a useful tool when seeking insurance. Valuations can be used to determine the full replacement cost of a property, considering factors such as the market value of the property, the cost of labour and removal of debris, depreciation, etc. With a valuation, you can ensure you are sufficiently protected from events that may otherwise leave you in financial jeopardy.
Legal and taxation compliance
Owning, purchasing, and selling real estate all come with related legal and tax obligations. Valuation reports provide insight into the tax you are subject to as well as any other related legal policy or obligation you have regarding the subject property. With that, you can avoid incorrect payments and possible fines.
Assistance with the division of a deceased estate
The assets and properties found within a deceased estate often need to be fairly divided among beneficiaries in cases where a will has not clearly outlined how the estate is to be divided. Valuations are used to guarantee a transparent and just division in line with legal regulations.
How long do property valuations take?
The valuation process generally takes between 2-10 days. Different factors impact how long you’re likely to wait for your valuation report. These include:
- The type of property being valued.
- The scope and purpose of the report.
- The location of the property.
- The accessibility and availability of data.
The property inspection itself will not likely take longer than an hour. Afterwards, a detailed report is prepared based on the data and inspection.
Residential property valuations tend to take around 48 hours, while commercial property valuations can take anywhere between 5-10 days. If you’re worried about the time it’s taking to receive your valuation report, request some clarity from the valuation firm regarding when the process will be complete.
The significance of valuations in Perth is clear. Anyone with a stake or interest in real estate can stand to benefit from these key services.
A property valuation is an official, reliable, and accurate method of finding the market value of a subject property or asset. It comes in the form of a legally accepted report that clearly and definitively outlines market value.
Valuations are prepared by Certified Practising Valuers registered with the Australian Property Institute (API). They are trained and experienced professionals adept at determining accurate market value for a range of property types.
The advantages of independent property valuation reports include swifter negotiations, valuable pre-sale/pre-purchase guidance, consistent legal and tax compliance, finding appropriate insurance cover, fair division of a deceased estate, and quicker mortgage and re-financing applications.
In general, the valuation process can take anywhere between 2-10 days. This depends on the type of real estate and the scope and purpose of the report.
If you’d like to learn more about property valuations in Perth, don’t hesitate to give us a call today to speak to one of our qualified experts.