For those involved in real estate, valuation reports are a crucial service. Owners, sellers and investors of property can all stand to benefit from these independent services.
A valuation report is a document outlining the existing market value of a subject property. In Southern Australia, it serves as the most reliable tool for finding precise market value.
Understanding market value is vital to effective real estate management and decision-making. A valuation report will provide detailed clarity on the value of real estate in the existing conditions.
Valuation reports in South Australia can be used for residential, commercial, industrial and rural properties.
What is a property valuation report?
A property valuation report is a document prepared by a highly qualified real estate specialist to outline the existing market value of a subject property.
These specialists are known as Certified Practising Valuers (CPV). CPVs are property experts registered with the Australian Property Institute (API); a governing body committed to upholding exceptional standards for real estate professionals throughout the country.
As registered members of the API, valuers have been trained and educated in the art of determining market value.
Valuation reports are also accepted as official proof of market value. Every report is written as per the relevant regulatory and legislative requirements; valuers are careful to tick every box.
In general, a valuation report will:
- Outline true market value of a subject property
- Come in short form or long form
- Cover every relevant detail
- Provide insight into strengths and weaknesses
A valuation report is also an independent service; CPVs have no connections to real estate agencies, financial lenders or anyone else with a vested interest in the property. All reports are based on objective evidence and physical inspections.
When do I need a property valuation report?
The legally accepted nature of valuation reports makes them extremely beneficial. There are plenty of scenarios where getting a report can make your life significantly easier.
Valuation reports can prove incredibly useful in any of the following circumstances:
For guidance on a sale or purchase of property
As reports give parties a detailed analysis of market value, sales or purchase negotiations can move at a much faster pace. A decision involving real estate is always massive one and getting clarity on its true value allows for an informed decision to be made.
For clarity on property-related tax payments
The unavoidable reality of paying taxes is prevalent in real estate ownership. Valuation reports can clarify all property-related tax obligations, helping you avoid penalties or fines for late or missed payments. You can also use valuation reports to challenge unjust tax payments.
For assistance with securing a loan
Financial lenders and bankers need to know the market value of a property before deciding on an appropriate loan package. As bank valuers may provide conservative assessments, getting an independent report is a much more reliable method of finding value. The higher the market value.
For guaranteed fair compensation
If you own a property that has been forcibly taken via a process of compulsory acquisition, you are entitled to fair compensation for your loss. The compensation you receive is based on its market value; this makes it a useful tool to ensure you are fairly compensated in the event of compulsory acquisition.
For appropriate insurance coverage
Anyone who owns property needs sufficient building insurance in case of unexpected loss or damage. A valuation report will provide clear information regarding the full replacement cost including labour, materials and removal of rubble. A report can thus ensure you have the appropriate insurance to protect you from financial vulnerability.
For swifter settlements and resolutions to legal disputes
For settlements and disputes regarding a piece of real estate’s value, independent valuation reports can make the whole process a quicker and easier one. As all parties will have clarity on the property's market value, they can resolve any other outstanding issues and quickly reach a resolution.
What types of properties can valuers examine?
A Certified Practising Valuer who is registered with the API will likely have the specialised insight and unique tools needed to prepare reports for any type of property.
A few of the most common valuation types are:
Residential property valuation
A residential property is one whose intended purpose is to provide a place of residence. These include houses, flats, flatlets, townhouses, apartments, units, and any other building matching the description.
Commercial property valuation
A commercial one has the primary aim of generating an income. Rental offices, shopping malls, retail stores, hotels, supermarkets, and other income-producing properties all fall under this category.
Industrial property valuation
An industrial property is a commercial type used for manufacturing, warehousing, distribution or processing purposes. Examples include logistics centres, production assembly warehouses, breweries, clothing factories, and more.
Rural property valuation
Rural property is generally defined as located in a generally unincorporated area with a low population density. A few examples of rural types include farms, ranches, shacks, small village homes, and more.
Land valuation
A land valuation is focused strictly on the land itself and is unconcerned with additional structures or improvements made upon it. Land valuations are focused solely on the value of the unimproved land.
Summary
In South Australia, property valuation reports are an essential tool. The reports provide owners, investors and sellers alike with clear proof of market value.
Reports are prepared by CPVs registered with the API. As property specialists, CPVs generally have a history of preparing precise and comprehensive property valuation reports tailored to each client’s needs.
Getting a property valuation report can make all sorts of circumstances easier. Whether you’re selling your house or applying for a loan, valuation reports can be incredibly useful. A valuation can be performed on residential, commercial, rural and industrial real estate. You may even just require a land valuation to determine the unimproved land’s worth.
For more information on the ins and outs of property valuation reports, don’t hesitate to give us a call. As leaders of the industry, we would be happy to assist.