What is a Property Valuation?
An independent valuation from a certified valuer in Victoria is how you stay on top of the value of your property. Certified Practising Valuers (CPVs) are trained and registered by the Australian Property Institute (API) to accurately assess your property against the property market at large.
Independent property valuations can be grouped into three categories:
- full service valuations
- desktop valuations
- and kerbside valuations
Full service property valuations are the most sought after. Your valuer will use every method and piece of information available to them to determine the true market value of your property.
So, how about the other two then?
Desktop and kerbside valuations employ a more minimal approach. Both have their place, however. They come with unique benefits and downsides that differentiate them from each other.
These are largely a matter of:
- whether or not a physical inspection is carried out
- the costs involved
- the overall accuracy of the report
- and the purpose of your report
Regardless of which option is right for you, only a CPV is qualified to ensure accuracy. The standards of the API are recognised nationally and their registered members are held in high regard.
What is a Desktop Valuation?
What sets a desktop valuation aside from the norm is that it can be done completely remotely. These involve neither the internal or external inspection of the property you might expect.
Generally speaking, a full inspection is required for any existing property. How else could a CPV make a judgement call on the quality and conditions of the asset? Where desktop valuations come into play is with any planned or in-development property.
That being said, your CPV will likely conduct an inspection of the intended building site. This still allows your valuer to consider the local area when determining value. The likes of future developments, access to amenities and a neighbourhood’s reputation are still important to your residential or commercial valuation.
Certified valuers are qualified to assess a property’s worth based on its specifications, blueprints and plans. Only they can guarantee accuracy despite the lack of a physical inspection.
The process relies largely on property databases and collaboration with the developer. This is generally reserved for more low-risk investments. Furthermore, without an inspection or suitable information on the development, your final report may be somewhat conservative.
Are Desktop Valuations Accurate?
While desktop valuations are acceptable in many cases, they are not considered to be the most accurate route for determining value. Some form of inspection is generally preferable.
What is a Kerbside Valuation?
Unlike their remote counterpart, kerbside valuations do involve a physical inspection. The caveat here is that these are strictly exterior inspections. They are sometimes called drive by valuations. All in all, the inclusion of an inspection better equips your valuer to make informed calls on the condition and quality of the property.
As you might have guessed, a kerbside appraisal is both more detailed and more expensive. If you need to know a little more about the property in question, this may be the service best suited to you.
Much like a remote appraisal, your valuer will make extensive use of local property data. This involves:
- comparing your property to other sales
- assessing the current and future standing of your neighbourhood
- and reviewing the prevalence of any environmental risk factors
They are typically considered more accurate and reliable than desktop valuations. Simply put, there are some things you can't determine without an inspection. That said, even kerbside valuations are somewhat limited. They’re best suited for low-to-medium risk investments.
If you want to get the most out of your real estate valuation, consider the full-service option.
The Pros and Cons of Desktop and Kerbside Property Valuations
Each method has its merits and its downsides. Both are reliable in their methodology, but neither quite get the full picture. They are, however, good options to have and the specific state of your property may still call for either one.
In terms of desktop property valuation, the benefits are:
- cost: as the simplest form of valuation, they are also the cheapest
- speed: working fully remotely allows the valuer to concentrate on what information they can access
- and overall convenience: this form of valuation requires minimal effort on your part
On the other hand, the downsides of desktop valuation are:
- the lack of information on quality and condition
- as well as not being recognised for a number of legal requirements
Meanwhile, the benefits of kerbside valuations are:
- reliability: more information means more accuracy when it comes to valuations
- and convenience: these can be easily conducted while a property is occupied
Kerbside valuations do have their pitfalls. They are:
- cost: as they include inspections, the price can run considerably higher.
- Lack of interior inspection: naturally, this counts for both styles. Those impressive renovations you’ve been carrying out? They aren’t accounted for here.
Final Thoughts on Desktop and Kerbside Property Valuations
Property is complicated as is. You don’t need the valuation process making things more so. A licensed valuer has all the expertise to know what kind of valuation is right for your property.
Based on your requirements and the current state of your property, a CPV will conduct either:
- a full service valuation
- a desktop valuation
- or a kerbside valuation
Each one is valuable, but not necessarily appropriate for every situation. If your rural or industrial property calls for an interior and exterior inspection, you’ll need a full service valuation. However, it’s helpful for any property owner or future investor to know that there are other options available to them.
For more information on the kinds of valuations available, or to receive a free quote, reach out to one of our licensed CPVs today.