Why you need a property valuation specialist
Licensed real estate valuation firms play an important role in the Australian property market. They deliver specialised services to assist property owners, sellers, buyers and investors of all kinds.
Property valuation companies in Brisbane can determine the market value of any kind of property for a range of commercial, private or legal purposes.
Only through a property valuation firm can you find
Certified Practising Valuers (CPVs). These professionals can:
- develop well-researched, legally compliant property assessments
- analyse residential, commercial, retail and industrial property
- utilise extensive property market databases for research
- work to high standards for honesty, integrity and transparency.
Property valuation companies provide services that can inform your buying decisions, support businesses and assist with property tax.
Valuers are trained in rigorous methods of
financial and market analysis. With their knowledge and experience, any property owner can maintain the value of their assets. To that end, most professional valuation services can be fully customised to the customer’s needs.
These reports are the most accurate and reliable means to review the value of any asset. Though some similar services exist, they cannot offer the same levels of transparency and impartiality.
For a precise statement of your property’s place in the market, work with a licensed, independent valuer.
What do property valuation advisors do?
These professionals are qualified and experienced in the area of property valuation.
In other words, conducting extensive research and analysis to determine the fair market value of the subject property. They develop detailed reports that describe the valuation process and findings.
Licensed valuers are trained, graduate members of the
Australian Property Institute (API). These
asset valuers are trained across every kind of property, including
businesses or your plant and machinery assets.
Property valuers:
- have vital knowledge of your local market.
- receive years of training and practical experience before graduating from the API
- analyse properties against a range of internal and external factors
- can deliver entirely objective valuation reports.
The latter is part of what distinguishes a CPV from similar services. Banks and real estate agencies provide similar services for properties they manage or in cases of mortgage security, for instance. However, there is a key difference.
Property valuation firms vs bank and real estate appraisal
Unlike an independent valuation, neither the bank nor real estate appraisal services are free of bias. Both present a significant conflict of interest. Bank valuers work on behalf of their employer. This generally happens in the case of a home loan, where the bank needs to confirm the value of the asset in order to validate the loan.
As a result, these valuations tend to err on the conservative side, as banks tend to be
risk-averse.
Meanwhile, real estate agents appraise properties based on what they believe they could sell for. They earn their commission based on this amount. Though estate agents hold tonnes of knowledge on the property market, these appraisals cannot be considered unbiased.
Independent valuation reports are recognised by courts in Brisbane as impartial. They are submittable for numerous property-related legal matters such as
family law.
How property valuation experts work
The vast majority of valuation services are conducted using different combinations of three methods.
They are:
- the comparison method
- the income method
- the cost
This goes for everything from residential to
commercial property valuations. A CPV is trained to select and tailor these methods according to the customer’s requirements and the specific asset.
The comparison approach is primarily based on market research. Here, the premiere market databases that CPV use are a significant advantage. They allow a valuer to draw direct comparisons between your property and similar properties recently sold in your area.
Valuers compare your property against others using over
200 internal and external factors. These include location, age, condition, size, zoning restrictions, access to amenities and more.
Next, the income method is reserved for income-generating properties. These could be rental properties or commercial spaces, for instance. Valuers use profit generated as an indication of an asset’s fair market value.
In contrast, the cost method involves tallying all costs involved in developing the asset. Everything from planning and construction to building materials and administrative costs. In essence, this is an analysis of exactly what it would take to replace the property in question.
Your final valuation report will illustrate each method and its findings in detail.
Summary:
Real estate valuation companies are an essential ally to the modern property owner or investor. Their knowledge and expertise are hard to come by anywhere else. This specialised knowledge of the market can help investors maximise their portfolio, or help everyday homeowners protect their assets or get the ultimate sale price.
Certified licensed valuers are trained by the API to guarantee accuracy and transparency.
They deliver legally certified valuations across retail, residential, commercial and industrial properties. Their methods can be tailored towards your needs and obligations. They assist in legal matters or the buying and selling process.
The comparison, income and cost methods work together organically to tell the full story of your asset and its fair market value. Each calls on varying degrees of market and financial analysis, using extensive market databases to support their research.
Licensed valuers are distinct from bank and real estate appraisals. These services do not deliver impartial reports and seeking out an independent service is always advised.
To learn more about the valuation service, or to receive a free quote on any of our services, reach out to one of our valued CPVs today.
