A valuation is the determination of the value of a property by an appropriately qualified, independent valuer who has no pecuniary (financial) interest in the subject property, other than the fee charged for the service.
A valuer is a tertiary educated professional, who possess a high degree of research, analysis and report writing skills.
Valuation fees vary according to many factors. Some of these include the property type, the purpose of the report and report format itself. The cost of a valuation can be tax deductable if it is used for an investment property. A valuation fee represents a very small portion of your total property investment.
Valuation reports for non-legal purposes can usually be completed in a little as 48 hours for standard residential properties. However complex commercial, industrial or rural holdings can take longer. There may be circumstances that could affect this time frame.
An independent valuation is recognised as a legal document. The value is determined by an independent and qualified professional who is recognised by the courts and lenders as being an expert in their field.
The difference is that a valuation determines a value that the property is ‘likely or would’ sell for, as opposed to an appraisal, that provides an indication of what a property ‘could’ sell for.
There are several levels of valuer qualifications depending on the level of experience, area of specialisation and accreditation attained through the professional body of the Australian Property Institute (API).
It is highly recommended that you engage the services of a valuer that carries the Australian Property Institute (API) accredited qualification of Certified Practising Valuer (CPV).
The most common purpose is Finance or Mortgage Security. This is where a lender will request a valuation on a property so they are able to assess how much they would be willing to lend to the owner.
Other purposes include, but are not limited to, Taxation, Accounting, Pre-sale, Pre-purchase, Legal and Asset Management. The report should have a statement to this effect.
At Egan Valuers, we are able to provide a wide range valuation services that covers most property classes and locations. These include residential, commercial, industrial and rural.
Some of these include:
- Market Valuation
- Mortgage / Refinancing Valuation
- Family Law Valuation
- Pre-purchase Valuation
- Stamp Duty Valuation
- Portfolio Valuation
- Self Managed Superannuation Fund Valuations
- Insurance Valuations
- Capital Gains Tax Valuations.