What is an Independent Valuation & How Does it Help?
For property owners, an independent and registered valuation is the only way to know the true worth of your real estate. While other methods of examining a property’s value exist, none hold the same degree of accuracy and legitimacy.
An independent and registered property valuation is a sure-fire way of getting a reliable report. Knowing the value helps buyers and sellers make informed decisions regarding the property. A wide range of valuation services in NSW are available for property owners, buyers, and sellers.
Only Certified Practising Valuers (CPV), also known as independent property valuers, registered with the Australian Property Institute (API) are qualified to prepare registered valuation reports. As experienced professionals, valuers are well-versed in meeting regulatory and legislative requirements. As independent property valuations are often needed for litigation or settlement negotiations, there can be no slip-ups.
By following internationally recognised valuation standards, professional valuers can create detailed and precise reports perfectly suited to a client’s circ*mstances. Such reports are wide-ranging and the content depends on the purpose and the property types
Different types of property valuations
As valuations cover all sorts of properties, valuers need to be proficiently experienced in all things to do with the property. Localised specialists are for the most part able to adapt to different kinds of real estate. If you're thinking "but how much does an independent property valuation cost?", it depends on the type of report.
A few of the most common property valuations that experts perform are:
Residential Property Valuation
If you own a house or are looking to own a house, a residential valuation can be greatly beneficial for both buyers and sellers. Valuers perform a thorough inspection and use a combination of reliable methods to reach a final value.
By considering the location, the size of the property, floor and storage space, nearby facilities, market conditions, and more, a valuer can prepare an accurate and comprehensive report.
Commercial Property Valuation
As commercial properties make money, valuers have an extra set of factors to consider. Commercial valuation experts will need to consider the annual income and expenses of an organisation, in addition to the factors looked at in residential valuers.
A qualified valuer will determine the net operating income and divide it by the capitalisation rate to reach a reliable final value.
Rural Land Valuation
A rural land valuation requires the unique skillset of a specialist well-versed in the area. Often, government officials hire independent valuers to assess rural land value.
Professionals will consider the worth of the land minus any improvements or structures. Looking at the unimproved land reflects the value in its natural and undisturbed state. The valuer will consider surrounding infrastructure and the value of similar rural sales.
Industrial Property Valuation
An industrial property refers to a property used for industrial purposes, such as warehouses, factories, workshops, breweries, and distribution centres among others.
When preparing an industrial valuation report, experts consider the site area, plans for the surrounding location, the standard of security or safety, and any potential governmental limitations.
Benefits of property valuation
A certified valuation report is useful in a variety of different situations. The benefits are wide-ranging and can save you both money and time. A few of the main reasons people get property valuations are:
Pre-purchase/Pre-sale advice
Before purchasing or selling a property, it is vital that you know exactly how much it’s worth. A pre-purchase/pre-sale valuation can lead to swift and efficient negotiations. Both parties can rest assured knowing that a qualified professional with no outside influence has outlined the true worth of the property.
Settlement Negotiations
Negotiating a settlement can be a drawn-out and complicated process for many. In cases where a property needs to be divided, the best way to avoid consistent arguing is to get an independent valuation report. The unbiased report will remove the need for either party to make claims about the property’s worth, as a clear value will be defined.
Rental Review
When lease agreements come to an end, new contracts need to be drawn up. A crucial part of the new agreement is ensuring it is in line with the current market conditions. As a landlord, you do not want to overcharge or undercharge on rent. A registered and independent property valuation can help guarantee a fair contract with a reasonable rental cost per month.
Litigation
In some cases, an individual may find themselves in litigation proceedings that require an official valuation of a property. Certified valuers are well aware of the conditions of the court, and reports are prepared in line with all of the relative regulatory and legislative requirements. As such, clients need not worry about reports getting rejected by courts.
Summary
In conclusion, an independent valuation is beneficial in a wide variety of circ*mstances. In fact, it’s the only way to guarantee an accurate valuation.
No matter the property type, Certified Practised Valuers are experienced in all sorts of valuation services. Whether you need a pre-purchase valuation on your residential property or a settlement valuation for your business, an experienced valuer can assist.
Independent valuations lead to smoother negotiations and fewer complications, making it a valuable service for many.
For more information on how independent property valuations may serve you, speak to one of our qualified experts today.
