A lot of Australians own property but may have never needed or known about the many property valuation services in Sydney. If you are unfamiliar with valuations, it is simply an investigation into your property to determine how much it is worth at any given time. In essence, a property valuation report states the market value of a property, the factors affecting this value and how a valuer came to their conclusion.
Why do I need a property valuation?
A property valuation is needed in several different scenarios. This can be for formal legal matters such as seeking compensation, or informal matters like inspecting a house before you buy.
In most scenarios, it is to provide evidence and to serve as an accurate report of a property’s market value. If need be, you could have a retrospective valuation to have a report of the value of a property at a particular time in the past. While it may seem strange, a past value is needed quite frequently. Normally for tax purposes or litigation.
What is involved in a property valuation service?
These services are provided by a property valuer, ideally with a certification from the Australian Property Institute. This means that their service is consistent with both international and Australian guidelines.
A valuation involves a strictly evidence-based process which may include research, inspection, analysis, and calculation. When a valuer determines market value, they must use an appropriate and approved method of valuation. The most common is the comparison approach which involves finding several properties that have recently sold in the area and comparing them to the subject property.
Once a property valuer has calculated the value of a property, they will write up their findings in a report with the evidence that they have based their calculations. This report is a sworn document that is delivered in a format that best suits its intended purpose.
What property valuation services are available in Sydney?
There are several types of Sydney property valuation services. Each service is for a specific type of property and for a specific purpose. There are four broad types of property:
Within these property types are countless subcategories with even more types of properties. This means that there are many property valuers with various specialities. Purposes vary greatly and not every company can create a report for every purpose. Here are the most common services that are available from most providers in NSW:
Capital Gains Tax
Also known as CGT, capital gains tax is a part of your income tax. It is the tax you pay whenever you have profited off the loss of an asset. While usually this is from a sale, there are several kinds of CGT events including receiving compensation from compulsory acquisition. This is just one example of a property valuation for tax purposes and will help determine how much you owe.
Grant of Probate
It is an unfortunate part of life to deal with the loss of someone you are closely related to. It can be more difficult for the person chosen to represent the deceased in dealing with their estate. In handling the estate of the deceased, if the representative was named as the executor of the will, then they will need to apply for a Grant of Probate from the NSW Supreme Court. A part of this application process, as well as the distribution of the assets, is proving the value of the estate including property.
Divorce Settlement
When settling property in a divorce or in the separation of a de facto relationship, it is important to establish how much the subject property is worth. Whether it is for transferring title from one person to another or buying out their share, defining the market value aids to ensure that the settlement is fair and correct. It should be noted, a separation valuation can come in a couple of forms depending on the stage of the settlement. This can affect the price and how long it will take to complete the valuation.
Mortgage Security
These days, for the average Australian, mortgages go hand in hand with owning real estate. When you first apply for a home loan, the lender will request a valuation. This is a standard procedure and will determine whether your loan application is successful. It is also what a bank or financial institution uses to decide on the loaned amount. While this is normally completed by a bank valuer, it is possible to have an independent valuation when applying with a small lender.
Insurance
There are several types of insurance that real estate owners can apply to. This includes building insurance, home insurance and landlord insurance. For each, a valuation can be key in ensuring your policy adequately covers your property. When done correctly and precisely, it may even save you from paying more in premiums than is needed.
Rent Review
Leases are not permanent. Even a fixed long-term lease agreement will have an end date where both the lessor and the lessee can make changes to their agreement. This can include updating the rent amount so that it is up to date with the current market value of the rental property. The purpose of the rent review is to determine how much rent should be charged. This could also be done in the middle of the lease term if this has previously been agreed upon.
Pre-Sale/Purchase Advice
Buying real estate is a large investment and thus should involve some due diligence. A pre-purchase valuation can help you decide whether a particular piece of real estate is worth its price tag. From a seller’s point, a pre-sale valuation can help you set the price for your listing as well as form your approach to selling. It may also provide some insight into ways you could improve the property and potentially earn more profit from the sale.
How do I order a valuation?
To order one of the many property valuation services in Sydney, you will need to make an enquiry with a service provider. As each valuation is unique, you will receive a custom quote. If you are interested in a free quote or would like more information about property valuation services, contact us today. Our specialists are at your service and are always happy to help.
