Getting a valuation on your property is a simple process. As long as you choose the right team. It takes highly specialised training and certification to carry out a valuation to the correct standards. An accurate report should include in-depth market data. It should also be entirely impartial. Unfortunately, not all property professionals can achieve this.
For a real reflection of your property’s value, you’ll need a qualified valuer in Melbourne. The regulations they adhere to ensure quality work and total transparency. Their methodology is tested and approved by the Australian Property Institute (API).
These methods include:
- the direct sales comparison method
- the building cost replacement method
- and the income capitalisation method
A Certified Practising Valuer (CPV) will combine these methods to develop your report. There are numerous legal or statutory purposes to seek out a report, but only a CPV can cater to those requirements.
The specific needs of your report will influence the methodology and pricing involved. This includes the overall level of detail you require, aka a long or short form valuation report.
Research is the name of the game when it comes to your next property valuation. Understand the process and pick the right experts to benefit from the most accurate methods and prices.
What is a Property Valuation Report?
Not familiar with the concept? You might compare it to a real estate appraisal. Both refer to the process of determining any property’s value, whether it be residential or industrial property.
There are a number of key differences. These include:
- the methods used
- the purpose of the report
- how each report is (or isn’t) recognised legally
- and the level of transparency and objectivity involved
Both approaches can be used for buying or selling property. However, that’s where the usefulness of a real estate appraisal ends. If you’re looking to calculate your capital gains tax or change the ownership structure of a business, there’s only one option.
Property valuation reports can cover you for these needs and more. This is the scientific approach to calculating your property’s value. It’s valid across any property type, recognised by the courts as impartial and keeps the customer in mind throughout the process.
On the other hand, real estate appraisals don’t go much further than the sale. It’s a professional guess based on the estate agent’s own experience. Property valuations are based on objective data and repeatable methods.
This is the guarantee you want when it comes to taking care of your investment.
How to Develop Real Estate Valuation Reporting?
Method is a huge part of what sets a CPV apart from the competition. Don’t put the value of your property down to estimation. Only a certified valuer has the industry expertise needed to select the appropriate combination of methods.
Each method is distinct. They’re designed to complement each other and fill in any gaps left by one or the other.
Let's dive further into each valuation method.
The Direct Sales Comparison Method
This is a fundamental step in developing your property valuation report. It comes down to comparing your property against the successful sale of other similar properties. This allows your valuer to gauge the kind of prices that work for your local area.
The Building Cost Replacement Method
This is considered a secondary check against the direct sales comparison method. It involves a full review of the cost involved in constructing your property. This includes everything from the labour involved to the materials used.
The Income Capitalisation Method
Otherwise known as the income approach, this allows your valuer to determine property value based on rental income. Simply put, the more money your property generates, the higher the perceived value.
How Much is a Property Valuation Report?
Cost is likely to be the first question on any budding investor’s mind. There is no all-purpose answer to this. A CPV is trained to customise your service according to your needs. Similarly, the price of your property valuation report is tailored to fit the service provided.
The cost of your valuation report may depend on:
- the level of detail involved (a long or short form report)
- the type of property being valued (e.g. residential versus commercial property)
- or the type of service being delivered (e.g. a capital gains tax or deceased estate valuation)
You’re also paying for expert knowledge. The precise combination of property expertise and financial savvy possessed by CPVs is rare. No matter the service, a CPV can guarantee that the cost of your report reflects the work involved.
In Closing: How to Get a Property Valuation Report?
It’s a simple matter of picking the right professional for the job. A CPV is the best bet for your every valuation need. The values of the API are second to none. They ensure that each valuation is carried out with care.
Your valuer will assess the quality and condition of the property and surrounding neighbourhood. The review will include current or future developments, access to amenities and more. CPVs utilise extensive property databases filled with highly sought after data.
All of this comes together to benefit you and your investment.
Only a CPV can:
- employ the right combination of proven methods
- conduct a valuation on any kind of property
- access the largest property databases available
- guarantee total objectivity
- and tailor the cost of your valuation report to accurately fit the service
The first step in a good investment is making informed decisions. The training and certification provided by the API qualifies a CPV to help you do exactly that.
If you’d like to learn more about why you might need a property valuation, get in touch with one of our highly qualified valuers today.