In the world of real estate, many are reliant on sworn valuations. Otherwise known as property valuations, these services form a crucial part of the industry.
A sworn valuation is an assessment of a property or asset, used to determine its market value. It comes in the form of a comprehensive written report and is seen as definitive proof of the asset’s market value. This means it can be used in a range of different circumstances.
Sworn valuations in Perth are hugely beneficial for anyone with a stake or interest in real estate. Whether you’re investing in property, considering selling your home, or need assistance with a legal dispute, sworn valuation reports are the perfect tool.
Who can prepare a sworn valuation?
Professionals who undertake valuations are known as sworn valuers. They are also often referred to as Certified Practising Valuers (CPVs).
To obtain accreditation as a sworn valuer, you must be a registered member of the Australian Property Institute (API) and have sufficient valuation training under your belt. The API oversees the standards for property specialists across the country with the aim of maintaining a consistent level of excellence across the board.
Sworn valuers are trained to be accurate and have an in-depth understanding of the ever-evolving real estate market. They are committed to the fundamental principles of transparency, honesty, and integrity and prepare each report in accordance withal the relevant regulatory and legislative guidelines and requirements.
A valuation report from a sworn valuer is the most precise and reliable method of finding market value for any property in Perth.
What information is included in a sworn valuation report?
Individuals and organisations often rely on the insights offered in sworn valuation reports. The information generally included in sworn valuations is as follows:
Details regarding the property
Basic information such as the address, legal description, measurements, and any other notable or relevant features known to affect market value.
Scope and purpose
Sworn valuation reports define the exact reason for the valuation. The document will clearly state whether it’s a pre-purchase, tax, or separation valuation, among many other purposes.
The valuer’s qualifications are also often highlighted in the report to showcase credibility and experience.
Sworn valuers apply a combination of methods to determine the value. The primary and secondary methods are included in the report to provide individuals and organisations with insight into the process and to maintain transparency.
Age and condition of the property
Valuations often involve comprehensive physical inspections. This is so that valuers can review the age and condition of the property and include notes on it in the final report.
Income and expenses (if applicable)
If a sworn valuation is being performed on a commercial property, information regarding the yearly income and operational expenses are included as they impact the final market value of the property.
Market trends and conditions
Valuers also include an analysis of the local property market, covering trends, significant changes to the market, comparable sales, and more.
Final market value
Last but certainly not least, the final market value of the property is outlined. This amount is seen as the official proof of market value and can be used in a range of different legal, private, and business circumstances as these reports are legally certified.
What are sworn valuations used for?
There are plenty of reasons to purchase a sworn valuation. A few of the main purposes of these services are:
Sworn valuations are most commonly used by those considering selling or purchasing a property. They help individuals and organisations make informed real estate decisions and set fair prices.
Local governments may use sworn property valuations to determine property tax liabilities. An accurate valuation ensures fair and equitable taxation.
Valuations are often used to determine the full replacement cost of a property to ensure the insurance coverage is enough.
Mortgage and refinancing applications
Mortgage applications are often supplemented with valuation reports in order for valuers to determine the loan-to-value ratio. This ultimately decides whether your loan is approved and how much you will receive.
Sworn valuations are also used to assess the properties an investor currently has in their portfolio. With a valuation report, investors can be up to date on the condition of their investment and the surrounding market.
Settlement negotiations and legal disputes
Sworn property valuations are often used as evidence in legal disputes or settlement negotiations, such as divorce settlements, probate cases, eminent domain, and property partitioning cases. This can increase the likelihood of a fair settlement for all involved.
Find a sworn valuer
If you need the services of a sworn valuer in Perth, do your research and find a valuer who is:
- A Certified Practising Valuer (CPV)
- Regulated by such institutions as the API and RICS
- Known for providing high-quality and accurate reports
- Experienced in conducting valuations of your property type and situation.
This will determine whether your valuation report is fit for your needs, which will save you money and prevent needing to get a new report from a more qualified valuer.
Contact sworn valuers in your local area to learn more and to get a quote on a service.