Property Valuation Report
What to expect when I ask for a property valuation report
A Property Valuation Report is a document that shows the price your property is valued at and it lists the criteria used to come to that conclusion.
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The term ‘property valuation report’ sounds like an objective report certified by an authority - and in it’s true context that is exactly what it is – sometimes it’s simply a very general appraisal sent to you via email.
Before making a decision based on this report, or using your credit card to pay for it online, it’s best to find out exactly what you are getting.
Is it a formal and independent report? Is it a agent’s appraisal? There are two questions you can ask to find out.
1. Will your report include an on site inspection?
If the valuer/agent does not see your property inside and out, their appraisal is not likely to have been thorough.
2. Are you accredited by the API (Australian Property Institute)?
This speaks for it’s self. If they’re not accredited and they are not coming to see your property the appraisal can not be thorough.
API accredited valuers need to have tertiary qualifications and at least two years professional experience to gain CPV certification.
After which they need to undergo regular professional development courses through the API to keep their qualifications up-to-date.
There are various reasons you might seek a property valuation report (see Commercial Property Valuation & Investment Property Valuation) and this will determine whether you require a certified valuation or a learned appraisal.
What is in an independent and accredited property valuation report
Again, it depends on its purpose. For instance, it may be a legal requirement through the family law court, for probate or to satisfy stamp duty requirements. However, for a standard sell/buy situation, once the valuer has performed an on site inspection, a standard certified report consists of the following:
- Image of the property. This is usually on the first page along with the date, address & purpose of report
- Location: where it is in the street, in the block (if it’s a unit), in relation to the nearest facilities, such as shops, bus and rail and which way the building faces.
- Title: It’s Lot and Strata Plan Number and the proprietors details
- Occupied: whether it is vacant or has a tenant
- Search: A search of title to ascertain provisions and entitlements. (Entitlements describe development rights like ‘zoning amendments’ and provisions describe things like insuring agreements that may be a council requirement etc).
- Town planning: zoning regulations, such as ‘zoned residential’ or ‘zoned light industrial’.
- Improvements: what is on the land. For example: a four storey walk-up town house or a house with double garage attached.
- Accommodation: What the building contains, ie: 3 bedrooms, 2 bathrooms, laundry, kitchen, rumpus etc. And a description of these rooms
- Condition: the condition, taking into consideration the age of the building and what it has been used for.
- General remarks: The opinion of the valuer. For example, “the building does not include a parking space.” Or “It is convenient to local shops.”
- Basis of assessment: The information the valuer used in his assessment, such as a title search, the understanding there are no restrictions on the dwelling, market assessment based on the sales of similar properties in the area, the cost of building a similar dwelling on the land.
- Valuation: the dollar value
If you are buying a home or residential property an accredited property valuation is an excellent starting point because it is way to compare your agent’s appraisals – or to make your own appraisal if you decide to sell by yourself.
To Find A Good Real Estate Agent in Your Area to Help With Your Property Valuation Click Here