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Frequently Asked Questions

• How can a certified property valuation help you?
• Bank valuations vs. property valuations
• Why do you need a property valuation?
• What is the role of a certified property valuer?
• What does a property valuer include in a residential valuation report?
• How does a property valuer calculate current market value?
• What is the difference between a real estate agent and registered property valuer?
• What is the difference between a long form and a short form property valuation?

How can a certified property valuation help you?

Seeking out a certified property valuation will give you a clear insight into the fair market value of any subject property. As such, a certified property valuation will provide an independent, transparent analysis of the subject property to be used for any legislative requirements and all matters for private use.

A certified property valuation can help create a greater sense of certainty around any property related decision. As such an independent property valuation is conducted by an industry professional with the expertise and local knowledge to provide reliable advice to inform any decision regarding the subject property.

Bank valuations vs. property valuations

A bank valuation seeks to determine the value of the subject property for the sole use of securing the loan and to help measure the amount of risk associated with the loan. As such, a bank valuation tends to value the property more conservatively should the loan be defaulted.

A property valuation, however, is conducted without bias by an industry expert with extensive experience in their local property market. In turn, an independent property valuation provides an accurate insight into the true and fair market value of the subject property based on objective data and reliable advice.

Why do you need a property valuation?

An independent property valuation is required for any kind of legal procedure, and government submission relating to the subject property. It is also highly recommended for any matters of private use to inform property related decisions that require expert industry advice.

There are many areas of property that require a specialised and independent valuer to undergo extensive research and due diligence to ensure all eligibility and legislative requirements are met. As such, an independent property valuation will guarantee a professionally detailed and legally certified report based on industry expertise and objective data.

What is the role of a certified property valuer?

A certified property valuer is duty bound to complete fair, independent, and transparent valuation reports for a variety of purposes and property types without any bias or conflict of interest. A certified property valuer is trained and registered with the Australian Property Institute (API) and is considered an expert in their field.

Because certified property valuers have an extensive background in valuing real property, their industry expertise is highly regarded to provide assurance and advice on any subject property. As such, a certified property valuer is qualified to provide trusted industry advice for any legislative requirements and legal purposes.

What does a property valuer include in a residential valuation report?

When valuing a residential property, the property valuer will determine its value by conducting a direct comparison approach with similar properties in the area. As such, a residential valuation report relies heavily on specific details of the subject property in relation to the performance of the local property market to provide an accurate determination of value.

When determining value, the property valuer will also take into account variables such as proximity to infrastructure, public buildings, public transport, and local amenities. It will also use the underlying land value and environmental risk factors that contribute to the property’s value.

How does a property valuer calculate current market value?

A certified property valuer will investigate over 200 variables of the subject property in relation to the current market to determine its accurate fair market value. As such, a property valuer will only investigate variables such as comparable sales, underlying land value and proximity to public and recreational amenities as determined in the current local market.

As such, due to the dynamic nature of the property market, a current market valuation is only eligible for 90 days from the date of inspection. In turn, the property valuer can provide current market valuations for a variety of private and legislative purposes for all property types.

What is the difference between a real estate agent and registered property valuer?

A real estate agent is professional specialising in the buy and sell process of property. A registered property valuer, on the other hand, is an industry expert in providing reliable advice and industry expertise while being certified to value real property.

While a real estate agent can provide a document outlining property value, this should only be used as an estimation and is not eligible for any governing or legislative purpose. A registered property valuer can provide an independent certified valuation free from any kind of conflict of interest while providing an accurate fair market value.

What is the difference between a long form and a short form property valuation?

A short form property valuation is mostly used for matters of private use and contains a comprehensive analysis of the subject property. This will include comparable sales of similar properties in the area, and any internal and external factors that will influence property value. While a short form is still a certified document it is not eligible for the courts.

A long form property valuation, provides the same information, however, offers a more extensive market analysis and is reserved for commercial valuations, litigation, and family law requirements. As such, a long form property valuation includes 5 – 7 comparable sales as well as any statutory requirements to adhere to court proceedings.