Anyone involved in the real estate market can stand to benefit from property valuation reports. The reports play a critical role in the lives of property owners, investors, and stakeholders.
A report aims to outline the market value of a subject property or asset. The information included in a report often provides individuals and organisations with crucial insight into the strengths and weaknesses of a property.
Valuation reports in Hobart can be used in all sorts of property types and a range of different circumstances. In general, a report may:
- Come in long form or short form.
- Can be for residential, commercial, industrial or rural property.
- Serve as definitive and legally accepted proof of market value.
Only qualified and experienced experts can prepare precise valuation reports in Tasmania.
Who can prepare property valuation reports?
Only Certified Practising Valuers (CPV) registered with the Australian Property Institute (API) have the tools and skills to prepare reliable valuation reports. These experts have been trained to prepare independent reports for all sorts of property types.
CPVs have no connection to any financial institution or real estate agency; each report is prepared from an entirely independent point of view and there is no risk of outside influence or internal bias impacting the report.
For precise, detailed, and legally-accepted valuation reports, you need the assistance of an API-registered CPV.
What is included in a report?
The scope and detail of a report will largely depend on its purpose. A qualified valuer will determine the extent to which certain aspects of the report are expanded on. Reports can come in
- Short-form
- Long-form
Both short-form and long-form reports are reliable for determining market value. A long-form report will expand on the elements included in the short form; offering a more detailed analysis of each factor.
In general, a valuation report may include:
- A description of the property including a number of rooms, areas, and size.
- Measurements of the square footage and total land occupied.
- Risk ratings for environmental and market risks.
- Details on the age and condition of the building and land.
- Any additional information such as comparable sales (residential valuations) or net operating income (commercial valuations).
The factors that valuers consider when preparing reports are:
- Location
- Size
- Floor and storage space
- Street appeal
- Building condition
- Upgrades and renovations
How are reports written?
Property valuation reports are prepared in accordance with a rigorous set of regulatory and legislative requirements. As reports serve as official proof of value, CPVs are careful to meet every relevant standard; each is well versed in how to do a property valuation report.
Valuers also follow International Valuation Standards (IVS) as set out by the International Valuation Standards Council (IVSC). These are globally-recognised valuation standards intended to maintain a consistent standard of quality across the world.
In Tasmania, valuation reports are prepared in accordance with the requirements of tax authorities as well as courts across the country. A valuer will consider every relevant requirement while applying a combination of trusted methodologies to determine the market value.
How much is a property valuation report?
The cost of valuation reports can vary. The price you end up paying will depend on a few different factors, such as:
- The type of property
- The size of the property
- The purpose and scope of the report
- The experience of the valuer.
No universal fee exists for valuations; firms will have different pricing structures. Requesting a quote from a trusted company is the most reliable way of determining how much you are likely to pay.
The larger the property and the more complex the report is, the higher the price of the valuation is likely to be. For example, a valuation for a commercial property with multiple areas of business will cost much more than a valuation for a residential apartment.
The advantages of property valuation reports
So why would you get a property valuation report? The advantages are plenty for both individuals and organisations. For anyone involved in real estate, knowing the current market value of a property is massively important.
A reliable valuation report will:
- Provide a clear and definitive outline of a subject property’s market value.
- Lead to improved strategic planning and investment decisions.
- Allow for effective portfolio management.
- Lead to quicker sales, purchase, and rental negotiations.
- Speed up settlement, mediation, and legal processes.
- Support mortgage and re-financing applications.
- Guarantee fair compensation for compulsory acquisition.
- Outline tax obligations such as capital gains tax, land tax, and stamp duty tax.
- Ensure appropriate insurance coverage for buildings and assets.
- Lead to parties saving both time and money.
The benefits of getting a valuation report are clear to see. Individuals and companies who need insight into market value all stand to profit from legally accepted valuation reports.
Summary
A property valuation report is a document defining the existing market value of a subject property or asset. Reports are prepared by Certified Practising Valuers who are registered with the Australian Property Institute.
A valuation report is seen as official proof of market value. This means it is accepted in the eyes of the law and can be used as a certified document in several business, private and legal transactions, or negotiations.
CPVs consider hundreds of internal and external factors when spearheading valuations. They are meticulous in their calculations and committed to preparing precise and reliable reports. Hiring a registered CPV's services is the most trusted method of finding market value in Tasmania.
Valuation reports have several advantages; people and businesses across the country can all stand to benefit. From improved strategic planning to swifter negotiations, valuations can make your life easier.
For more information on the ins and outs of real estate valuation reports, feel free to give us a call today, one of our qualified experts would be happy to assist.
