For those involved in the buying, selling, or ownership of real estate, valuation reports are crucial. The purpose of an independent valuation is to provide the market value of a subject property or asset.
An independent valuation report in Victoria is not an ever-lasting document, though, and after enough time has passed it will no longer be as useful. As the real estate market is going through constant change, the report will eventually no longer be an accurate reflection of value.
Valuations are prepared by Certified Practising Valuers (CPV); expert professionals who are registered with the Australian Property Institute (API). This means they have been trained to prepare accurate reports for a wide range of properties.
As reports are legally-accepted, they can be incredibly beneficial for individuals and organisations alike. In all sorts of private, legal, and business circumstances, these reports are accepted as proof of value.
A report that has already run its course will do you no good, making it all the more important to know how long these reports last.
How long is a property valuation good for?
Valuation reports won’t necessarily have a set expiry date. As a general rule, you can expect an independent report to stay valid for around three months after the inspection of the property.
Any sudden changes to the market or property will also mean you need a new valuation report to reflect its current value. A report that no longer reflects the true value will not be useful to anyone.
In cases where your report has expired, a re-evaluation is needed. This can be done by the same experts who performed the initial valuation.
The whole process can take anywhere between a few hours and a few days. The report's purpose, the type of property, and the property's size will determine the report's length and the time it takes to complete.
How long does a property valuation take?
Of course, you’ll want the valuation process to be over as quickly as possible. Nobody wants to get caught up in a drawn-out and complicated process.
The time it takes to complete a property valuation depends on a few factors. These are:
- The purpose of the report
- The size of the property
- The type of property
- The type of report
Desktop and kerbside valuations are generally completed at a much swifter rate than full-service valuation reports. A short-form valuation report will also be quicker to complete than a long-form one as experts do not have to include the same level of detail.
A commercial property valuation will also likely take longer than a residential property valuation.
As a general rule, you can expect the valuation process to take 2-10 days before you receive a report.
What factors do valuers consider in re-evaluations?
When getting a new valuation report, valuers will go through the exact same factors as when the initial assessment took place.
Valuers have to go through multiple different variables when preparing reports to guarantee they reach an amount that accurately represents the subject property.
A few of the main considerations include:
- Location
- Proximity to public transport, school zones, and hospitals
- Size and space
- Number of rooms/areas
- Kerb and street appeal
- Building age and condition
- Upgrades and renovation potential
- Market conditions
If there are significant changes to any of these after the inspection, you will need a new valuation report to reflect the value.
Why not just get a real estate appraisal?
A property valuation is a far more valuable service than a real estate appraisal. The document holds more weight than an appraisal document as it is recognised in the eyes of the law.
An appraisal is a service performed by a real estate agent who has an inherent interest in the outcome of any potential transaction. As such, there is an internal bias at play that may impact the valuation calculations.
A property valuation, on the other hand, is prepared from an entirely objective point of view. The independent nature of the reports means there is no risk of internal bias or outside influence.
This means that you can rely on the accuracy and objectivity of a property valuation report. Valuations can serve as official proof of value for several months after the report is written.
Appraisals do not have the same standard of legitimacy. They are merely seen as estimations and not as conclusive evidence of market value.
In conclusion
A property valuation is a massively important service for anyone with a vested interest in a property. The purpose of the report is to provide clarity on its market value.
As the real estate market is constantly changing, valuation reports do not last forever. In general, a valuation report can be expected to stay valid for around three months after the inspection of the property.
The time it takes to complete a valuation is dependent on factors such as the size of the property, the type of property, the purpose of the report, and the type of report. You can expect the process to take 2-10 days in total.
Valuers consider several different internal and external factors when preparing reports. Location, size, space, street appeal, state of the building, and market conditions all impact a property’s value.
While some may be tempted to get a real estate appraisal instead, this does not hold the same weight as an independent property valuation report. Appraisals are merely seen as estimations while valuation reports are accepted as proof of value.
If you would like to learn more about how long property valuation reports stay valid, feel free to give us a call today.