Land Valuation
A land valuation is generally a comprehensive appraisal of a parcel of land only. That means a valuer does not factor in improvements such as buildings into their valuation. This is not always the case, and the many considerations of land valuations will differ from purpose to purpose.
What are land valuations used for?
For the average homeowner in Victoria, the most common valuation is one that is conducted annually for land tax and council rating purposes. This valuation assesses the property based on one of the following criteria:
- Site value
- Capital improved value, or
- Net annual value.
They do not always get it right, which is why you have the 2-month opportunity to object to a VGV valuation notice to either your local council for council rate valuations or the State Revenue Office for land tax assessments.
What about independent land valuations?
Valuations in Melbourne from independent valuers may be completed for a wide range of purposes including:
- Transferring property between related parties
- Advising an off-the-plan purchase
- Determining the worth of a deceased estate
- Planning a new development
These matters, among many others, may be more concerned with the property’s market value than any other type of value. Whether these assessments will include structures and improvements will depend on the circumstances of each client and the ultimate goal of the valuation report. A valuer can guide you on the specialised process and specific considerations of your report.
What do independent land valuers look at?
Valuations from independent valuers may be conducted on any type of property, which include the following:
- Residential properties
- Commercial sites
- Rural and agricultural locations
Each property type may have a different approach, but all will examine such things as:
- Location & surrounding environment
- Soil quality and type
- Surface details (sloping, uneven, etc.)
- Land class and/or council zoning
With all types of valuations in Victoria, no matter the purpose, the report must be compliant with the relevant standards of government agencies and professional bodies such as the International Valuation Standards Council and the Royal Institution of Chartered Surveyors.
Contact a local land valuation expert
Want to know more about land valuations? We can provide details on the process and requirements of the report that is specific to your situation. Call us on (03) 9021 2007 or write to our team via our online form. Our experts are always happy to help.