Frequently Asked Questions

What is a property valuation?

A property valuation is a certified document solely purposed to determine the fair market value of any subject property across residential, commercial, or industrial property types. A property valuation will include evidence pertaining to over 200 variables regarding the property details, land value, and external conditions that are likely to influence its value.

Seeking out a property valuation means you will receive an independently determined fair market value on the subject property conducted by an industry professional and property expert. As such, an independent property valuation can be used for a variety of purposes for private and legislative use.

What is the role of a property valuer?

An API certified property valuer is responsible for researching and completing independent valuation reports for a variety of purposes and property types. Property valuers are experts in their field with an extensive background in their local property market and are considered some of the most highly regarded valuers in the industry.

Because property valuers go through extensive training to obtain their certification, they are uniquely capable to complete valuations for specialised, niched purposes. This can range from the performing valuations to meet compliance measures, statutory, and legal requirements.

Why do you need a property valuation?

Seeking out an independent property valuation determines the fair market value of any subject property. As such, a property valuation is not only recommended for a variety of purposes, but it is also required for a number of legislative and taxation reasons.

Because a certified property valuation is a legally certified document, it can provide you with a comprehensive, objective analysis on the subject property without any kind of conflict of interest or agenda. A property valuation must be conducted by a certified valuer to ensure the contents of the report meets the standards, procedures, and criteria for any kind of purpose.

What qualifications are required to be a certified property valuer?

Becoming a property valuer—or a Certified Practising Valuer (CPV)—entails rigorous training through the Australian Property Institute (API), with many professionals also holding AVI and RICS qualifications. To conduct a certified valuation report, CPVs must complete tertiary education specializing in property, complete a two-year traineeship for practical industry experience, and pass a final professional interview. As a result, it typically takes around six years to be fully qualified to deliver professional valuation services that meet the highest industry standards.

Short form vs. long form property valuations

There are two formats of property valuations that you can opt for depending on your specific valuation requirements:

• Short form valuation: This kind of report is commonly used for property valuations for private use and most valuation purposes, including taxation, and pre-purchase/pre-sale advice. It will include a detailed analysis of the subject property including factors such as environment, a risk analysis, and comparable sales in the local property market.
• Long form property valuation: A long for report is usually reserved for Family Law and litigation purposes, and commercial properties. It will contain the same information used in a short form report, however, will adopt a more extensive market analysis and contains the required statutory statements to be submitted for court.

How does a property valuer determine value?

A certified property valuer will utilise three methodologies as outlined by the API to conduct a fair, objective, and thorough valuation on any subject property. These include:

• The Direct Comparison Approach: this will compare the subject property to similar properties in the surrounding area to determine its value. This is the most common methodology used.
• The Summation Approach: this is used exclusively by API certified property valuers as an additional check to calculate the replacement cost value of any ancillary improvements and depreciating the value by age. From here the fair market value will be calculated by determining the land value of the subject property along with the depreciated improvements value.
• The Capitalisation of Net Income Approach: this approach is predominately used for commercial properties using the net rental income. The property valuer will capitalise this at a rate of return obtained from comparable sales to determine the subject property’s fair market value.

How can a current market property valuation help you?

Seeking out a current market property valuation is not only one of our most commonly sought-out property valuations but it will allow you to gain perspective on your local property market. A current market value property valuation can be used for a variety of purposes and is valid for 90 days from the date of inspection.

A property valuation for current market value is the best representation of the subject property you can receive and will include a comprehensive analysis of the property and the property market.

What research does a property valuer complete for a valuation?

A certified property valuer extensively researches the internal and external factors of the subject property to determine its fair market value. As such, the location, council zoning restrictions, the building condition, and any fixtures and features will be analysed. In turn, the property valuer will also investigate proximity to local recreational amenities and public transport and the larger property market and take into account any other influences that may contribute to its value.

To conduct this research, the property valuer will use a selection of methodologies approved by the API to ensure an independent and accurate valuation report free from any conflict of interest.