Frequently Asked Questions

What is an independent property valuation?

An independent property valuation is a detailed report which determines a property’s fair market value, provided by a certified professional valuer. An independent property valuation is imperative in many circumstances, especially when required for compliance and legislation purposes. A property valuation can be determined by its current market value, or at a retrospective date.

Producing an independent property valuation is a detailed process that takes into account over 200 variables which influence the final report. This is why it is important to have a valuation completed by a certified professional, who can deliver an accurate and reliable valuation.

Why do you need a property valuation?

An independent property valuation is essential in circumstances relating to government compliance, legislation and legal proceedings. A property valuation is also highly recommended in other situations when requiring an accurate and fair report, without any bias.

A property valuation can only be conducted by a certified valuer with relevant experience, to provide reliable and advice based on objective data and extensive due diligence. In turn, delivering an independent valuation without any kind of conflict of interest or bias. Legal compliance proceedings require an independent property valuation to provide a detailed report which meets the legislative requirements of any governing body.

What is a current market property valuation?

A current market property valuation is the value of a property in the current property market. This is determined by conducting an investigation into a range of variables on the property at the time of inspection, and is only valid for 90 days. After 90 days the valuation report is no longer valid as it doesn’t represent the current market.

A property valuation for current market value is determined purely on factors of the property itself and local comparable sales in the area. The property valuation report can be used for a variety of purposes, including private and formal use.

What is the role of an independent property valuer?

An independent property valuer has the role of performing detailed and extensive valuations across all property types, and the property market itself, to determine its market value. As industry experts, property valuers have location specific knowledge to further validate their accuracy and reliability. Valuers are able to conduct valuations at its current market value or at a chosen retrospective date.

Certified property valuers have a professional process with high standards to produce valuation reports which are clear, accurate and reliable. They inspect a wide range of property types and investigate all variables before concluding a true value of the property.

What is the difference between a real estate appraisal and a property valuation?

A real estate appraisal is an estimated property price from an agent, based on what they think the property can sell for on the market. A property valuation is an unbiased, detailed report from a certified valuer which determines an accurate and fair market value.

A real estate appraisal has no legal validity and often has an agenda behind it. A property valuation, on the other hand, is a detailed certified document which is based on over 200 factors of the property itself, coupled with extensive research on the property market. A property valuation is guaranteed to provide an accurate and reliable report which can be further used in many circumstances, whereas a real estate appraisal cannot.

What are the qualifications required to become a certified property valuer?

Training is a standard of six years before becoming an accredited Certified Practicing Valuer (CPV). This includes a two-year traineeship with industry practice and a professional interview.

Certified property valuers are true experts in the professional property industry. They undergo extensive training and are accredited as Certified Practising Valuers (CPVs) by the Australian Property Institute (API), often holding tertiary qualifications in the field. Many also possess AVI and RICS certifications, making them some of the most highly qualified and recognised professionals in Australia. Their expert skills and vast experience equip them with the tools needed to deliver accurate and coherent valuation reports.

How does a property valuer determine value?

A property valuer must calculate the value of a property in accordance with the Australian Property Institute (API) standards. The value is determined by three methodologies:

1. Direct Comparison Methodology: This is used by the valuer to examine and compare over 200 variables between the property in question and comparable properties in its local market.
2. The Summation Methodology: API Certified property valuers mainly use this method. The property valuer will use this to determine replacement cost value using the depreciation of improvements against the property’s land value.
3. Capitalisation of Net Income: The property valuer will take the net rental income of the property in question, and capitalise this rate using comparable sales to work out its value. This methodology is mainly used for commercial properties.

What do our property valuers include in a report?

A property valuer will provide a detailed report of the property valuation, with clear and concise evidence behind the finalised value of the property. The property valuer includes a wide range of objective data, including: internal condition, location, site description and risk analysis. The property valuer will also include a comprehensive analysis of comparable sales in the nearby area.

Certified valuation reports can vary slightly due to the purpose of the valuation, this is to suit the needs of the client, e.g. If the valuation is needed for legal matters. As an industry professional, a property valuer will guarantee that the final report is fully compliant with all governing bodies.