Property Valuation Services

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The different types of property valuation services.

When you are looking for Property Valuation Services you will come across a few different levels of service coming under this one banner.

To put it simply, there are accredited and non-accredited property valuation services.

These non-accredited valuation services are actually property appraisals.

When to get an accredited property valuation service?

An accredited service is an independent valuation made by the Certified Valuer, most often used by a bank or other lending authority, when you apply for a mortgage.

They will use a number of different means to come to their conclusions about the value of your property - and the value they put on your property will often be considerably less than the market value your local real estate agent would put on the property.

This is because the Certified Valuer is paid to be conservative, compared to a real estate agent where they are sometimes rewarded with  handling the sale when they are overly optimistic.

Although you will be paying for an accredited valuation by a Certified Valuer, it is very useful to know how much a bank will value your property at, this can give you an indication of how much finance the bank will offer but it can also give you an idea of how to set a reasonable price if you don't like the agents opinions.

Of course, the bank will only be prepared to value the property at what they think they can reasonably sell it for should the loan be forfeited.

Where the agent will set his appraisal at what he believes a buyer would be willing to pay.

Can I get a property valuation service for free?

A property valuation service that is not accredited is often given free.

The reason it can be given free because it the body giving the service does not have to spend as much time researching and calculating as an accredited valuer does.

The rule of thumb here is, if it is free it is not accredited.

These types of property valuation services can even not include the essential on-site appraisal, offering the lack of it as a benefit – the ‘easy option’ - compared to the ‘complexity’ and ‘time consuming’ nature of an accredited valuation.

Essentially, a property valuation service that is not accredited and does not come to view your property or do a title search, is simply a ‘fair market value’ appraisal based solely on what has sold in your area recently. Beware aware that your bank will not accept this kind of valuation. (In fact, chances are that even when you employ an accredited and independent valuer, your bank will still seek their own accredited, independent valuation).

What if I am not using a bank to help me purchase property?

If you’re lucky enough to be purchasing a property without seeking a mortgage, it is in your interests to arrange a valuation report yourself. This will help you ascertain whether the purchase price is reasonable, and most importantly, the any defects or special conditions are identified before you sign a contract.

What information can a property valuation service give?

An accredited property valuer gives a formal and independent (including on-site) assessment of a property for a range of different purposes, including:

  • mortgage applications;

  • family law disputes;

  • joint ownership disputes;

  • calculation of capital gains tax & stamp duty;

  • probate;

  • insurance;

  • leasing; and

  • redevelopment;

Employing an accredited Property Valuation Service can help you avoid costly mistakes.

To Find A Good Real Estate Agent in Your Area to Help With Your Property Valuation Click Here