If you need a property valuer in Brisbane but want to know more about property valuations before you book one, then you have come to the right place. Here is a simple guide to everything you need to know about property valuations.
What is a property valuation?
A property valuation is the process of finding out a property’s market value. This can be for any type of property including a house, apartment, retail shop, factory, and undeveloped land. These property valuations are done by a property valuer and typically involve an inspection of the property and investigating several comparable properties.
The report a valuer provides after they have completed their valuation can be used for official situations such as law proceedings, taxes, and home loans.
The difference between a property valuation and an appraisal
On the surface a property valuation sounds a lot like an appraisal you may have had from a real estate agent but the two are very different.
Real Estate Agent Vs Property Valuer
First, an appraisal is normally done by a real estate agent. The agent would have needed to have completed a course and be licensed to work in Queensland as an agent. Depending on the course, a real estate agent could be working in as little as 6 months.
To be a licensed property valuer, a person must have completed a university degree or a post-graduate degree that has been approved by the Valuers Registration Board of Queensland. Alternatively, the valuer could be certified by an institution such as the Australian Property Institute (API). To be certified the need to have a degree or completed an accredited course and attended extra training. The valuer must also have at least 2 years of experience, have passed an interview and provided examples of their work.
Appraisal Vs Property Valuation
An appraisal is an informal process. A real estate agent will briefly walk through the property and then use their own personal experience and knowledge of the market to estimate how much your property could sell for. This may be an optimistic estimation as the agent wants your business and they want to make more profit from the sale.
A property valuation is a thorough process. A property valuer can only base their report on facts, data, and valid observations. The value that they report is an accurate representation of the property’s standing in the market. The valuation also doesn’t need to be a current market value. You can ask a property valuer to find out the value of your property at a specific date in the past. This could be useful for taxes, compensation or handling a deceased estate.
When do you need a property valuation?
A property valuation can be needed in many different situations. Here are some of the most common situations that require a property valuation.
- Pre-sale/pre-purchase advice: When you are planning to sell or buy a property, whether it is your future home or an investment, a valuation can help you negotiate for a better price.
- Mortgage security: A bank or lender will not approve a loan without first receiving a property valuation report.
- Probate/ Deceased Estate: To make sure that you or the executor of the will distributes the property of the deceased fairly and according to the will of your loved one, a valuation can help.
- Taxes: Many taxes, whether it is state or national, require you to provide proof of the market value of your property. The most common taxes that require a valuation are transfer duty and capital gains tax.
- Settlements: Property settlements for divorce or separation are typically resolved through mediation. A valuation provides evidence of the property’s value to make transfers or buy-outs easier and fair.
What is in a property valuation report?
A property valuation report is a comprehensive document that details all that influences your property value. This includes the characteristics of the property and local market data.
Here are a few things you can expect to see in a property valuation report:
- The date of the valuation
- Details of who completed the valuation
- The location of the property
- The dimensions of the property in Square Metres (sqm)
- The number of rooms and bathrooms
- The method the valuer used to perform the valuation
- Market information
- Details of any comparable properties that have been used
How do I get a property valuation report?
It is easy to get a property valuation report in Queensland. Simply search for a local property valuer and you will have many options to choose from. Call around to find a valuer that’s right for you.
When calling for a quote, they will ask some questions to provide you with a quote. Be prepared to tell them the type of property you need to be valued, the address and the purpose of the valuation.
If you want the best outcome from your property valuation, choose a valuer that is:
- Local to your area,
- Certified by the Australian Property Institute, and
- Very experienced.
For more information about property valuations, why not give one of our experts a call on (07) 3123 7147 or email us through our online form.