TOP TEN QUESTIONS ABOUT REAL ESTATE PROPERTY VALUATIONS
Q. What is a real estate property valuation?
A. It is a formal report, completed by a suitably qualified person, that attaches a monetary value to a property, and that is recognised by courts of law as an expert opinion.
Q. Does the valuer go to the property?
A. Often, but not always. Sometimes, a “desktop” report, done without leaving the office, will be satisfactory.
Q. What about the structure of the building?
A. You need a building inspector to report on that.
Q. What analytical methods does a valuer use?
A. Direct Comparison, Capitalisation of Nett Rental Income, and Summation are three common methods.
Q. How long is the written report?
A. It can be a one page certificate, or a multi-page document.
Q. How long is a report legally valid?
A. Three months, in the case of a current market value. Indefinitely in other cases.
Q. Why do I need a property valuation?
Transfer / Stamp Duty
Capital Gains Tax liability
Super Fund reporting
Retrospective / Historical Market Value
Deceased Estate / Probate
Purchase and sale
Arbitrations and determinations
Rental levels and leasing
Easements and encroachments
Resumption and compulsory acquisition claims
Matrimonial / family law matters
Q. What about computer generated reports?
A. Those reports are not recognised as legal valuations, nor as expert opinions, so cannot be relied upon.
Q. What if my rates notice tells me the value of my property?
A. Statutory valuations are done by automated statistical analysis, and are often outdated, so cannot be relied upon.
Q. What is an appraisal done by a real estate agent?
A. The agent is not seen as an expert by the courts, and the appraisal does not have the legal force of a valuation completed by a valuer.