How to develop real estate valuation reporting
Licensed, independent property valuations in Brisbane end with the delivery of a comprehensive property valuation report. These reports detail every step of the valuation process, from the specifics of your property to the methods used throughout the valuation and the final judgement of your property’s true market value.
This calls on specialised knowledge of your area, as well as the breadth of information found in the market databases that property valuers have access to.
These reports come in either short or long form depending on the purpose of the valuation. Trained valuers can fully customise each report to meet the needs of the customer. The contents of a report for a residential property can differ greatly from a business valuation report, for instance.
Contents of the report include:
- details of both the client and the valuer
- the overall purpose of the valuation service
- an in-depth description of the subject property
- the property’s value and the methods used to determine it
- the legal standards used to conduct the investigation.
These reports are legally certified to make them admissible for a range of legal matters. Valuation reports can calculate your property tax or drive the successful sale of a home.
What goes into a property valuation report?
There is more than one set of accepted standards for how to develop property valuation reporting. For instance, a Certified Practising Valuer (CPV) may make use of either the International Valuations Standards (IVS) or the standards set out by the Royal Institution of Chartered Surveyors (RICS).
The RICS standards, for example, require the inclusion of full details on both the customer and the valuer. For the CPV, this would include their name and the name of their firm (if applicable), occupation title and certifications.
The name of the client or client business will be included as well. It would also include anyone else making use of the final report, such as family members or legal representatives.
The reasons for your valuation
Defining the purpose of your valuation report is among the most critical aspects of the process. This will shape the result as well as the methods taken to get there and the overall content of your final report.
Different valuation services exist to meet every need of the modern property owner or investor. They can drive sales or rental negotiations, calculate property taxes or serve as supporting legal documents in a number of cases.
Types of valuations that may affect your report include:
- residential, retail, commercial, industrial, business or plant and machinery valuations
- capital gains tax or stamp duty valuations
- property settlements for divorce purposes
- applying for probate in a self-managed super fund (SMSF)
- mortgage security valuations
- deceased estate valuations.
This represents the tip of the iceberg of what’s available. If you are or are considering becoming a property owner, there are numerous instances in which you may require a valuation report.
Your property – descriptions and comparisons
Describing and analysing the property in question is among the most critical aspects of any valuation process. First and foremost, your valuer will review in detail its physical characteristics.
That includes listing the:
- number of bedrooms and bathrooms
- precise dimensions of the property in square metres
- building materials used
- overall condition of the asset
- improvements made by the owner.
Beyond that, your report will include a comprehensive process of comparison between the subject property and other similar sales in the area. This will include an assessment of the location’s economic state, environmental risks, access to amenities, zoning restrictions and more. The final report may include as many as 200 external and internal factors.
How to get a property valuation report
Getting a legally certified property valuation report is a matter of working with the right kind of professional. You want to enlist a licensed, independent property valuer with training from the Australian Property Institute (API).
This training establishes a combination of property and financial expertise that will serve you well, providing a wholly objective report developed with honesty and integrity.
CPVs hold vast expertise extending across everything from residential to industrial property. They know the ins and outs of the markets better than any investor and can help you realise the full potential of your portfolio.
The advantages of a CPV include:
- your report being legally certified
- providing unbiased services considered more accurate than bank or real estate appraisals
- a degree of openness and transparency that is rare among similar services.
Licensed valuers employ specialised knowledge of the market and your local area to deliver timely, accurate judgements of market value.
The services offered by bank appraisers or real estate agents present a conflict of interest. Both work either in their own interests or in the interests of their employers. Independent valuers, however, work to establish objective value and do not benefit from the end result of your valuation.
Summary
A real estate valuation report is a comprehensive document detailing an investigation into the market value of any given property. That could be a commercial, residential or industrial property, for instance. This service can help buyers reach the right price, support investors in managing their portfolios or help property owners of all kinds pay the right amount of tax.
These reports represent a legally certified statement of fair market value. They are recognised by the courts for legal matters such as family law, property settlements and probate applications.
For more information on how real estate valuation reporting is developed, or to receive a free quote, why not reach out to one of our qualified CPVs today?