A property valuation report is a sworn document declaring the value of a property. The report must be based on evidence and be compliant with the necessary standards and regulations.
Reports of this kind can only be produced by a certified valuer. When looking for a professional to provide a property valuation report in Sydney, it is important to find a specialist who knows what is needed for how you plan to use your report.
How can you use a valuation report?
There is a large variety of scenarios that demand or can benefit from a valuation. As reports are well-researched, legally bound, and highly detailed, they are versatile in use. For best results and regulation compliance, property valuation reports are also tailored for their purpose. Some of the most common purposes include:
- Buying and Selling: This reports the current market value of the property you are planning to buy or sell. Other helpful information includes a summary of the market trends as well as potential risks. This can help you decide on a property and negotiate during the sale.
- Rent reviews: Valuers examine the market to find comparable rental properties so that you can determine or update your rent so that it is up to date with the current market.
- Mortgage security: When applying for a home loan or refinancing, how much your property is worth will dictate whether your application is successful and how much your loan amount will be.
- Insurance: A valuation report provides crucial information about the property to your insurance provider as well as the total cost of replacing the building in the worst-case scenario. This ensures adequate coverage without paying more premiums than needed.
- Settlements: Whether it be for divorce, separation, deceased estate or family property disputes, a property valuation report is used to ensure that the results are fair and just. It also allows for swifter proceedings as the value of the property is not likely to be debated thanks to the accuracy and transparency of the report.
What is in a property valuation report?
The contents of a report can vary on the type of property being valued and the purpose of the report. All reports will be made to the standards of such organisations as the Australian Property Institute (API), the Royal Institution of Chartered Surveyors (RICS) and the International Valuation Standards Council (IVSC). According to these professional groups, the following must be included in a property valuation report:
- Name of the instructing party
- Name of the owner according to the title
- Identifying information of the property. Lot number, address etc.
- Date of the valuation (and inspection)
- Purpose or reason for the report
- Method/s of valuation used
- Type of property
- Number of floors, rooms, and bathrooms
- Condition if the structure
- Supporting photographs
- Age or approximation of construction date
- The determined value figure
The level of detail of the property valuation also varies. The length of the report is also determined by the purpose of the report as what is required is dictated by the relevant authority. Only a specialised property valuer with ample experience can ensure that your property valuation report is correct for its use.
Where can you get a report from?
There are two main ways of acquiring a property valuation report and what option is best for depends on why you need a report. For general estimates, that may be more accurate than a real estate appraisal then you could consider an automated online valuation. For everything else, especially for official use, then your best bet is an independent property valuation. Here’s what you should know about the two.
The valuation report contains the details related to property, it’s owner, valuation and additional information related to the property. This report is made after the complete analysis of the building, construction and building layout.
Automated Online Valuations
Many websites now offer valuations online. Some are generated by professional valuers, but most are created using an Automated Valuation Model. What this means is that value is computer-generated based on the data their algorithms have access to.
As this data can be quite limited and a professional valuer is not present to assess the report, there are no guarantees of the model’s accuracy. Because of this, online valuation reports are not valid for such things as mortgage security, court, and taxes.
Independent Property Valuations
Reports provided by independent valuers are the only valid valuation under the eyes of Australian Courts, and other key bodies. To find a valuer to assist you with your report, you will need to ensure that they have the proper experience and are certified by the API.
Finding a valuer is just as simple as finding an online calculator. You can search online, look through their reviews and then make an enquiry. To find out the cost you will have to request a quote as no two valuations are exactly the same.
For more information, get in touch with your local independent property valuer and make an enquiry about their valuation reports.
