Property valuation reports are detailed documents that provide the value of your property. This value is typically the current market value of the property. The report is made by a professional valuer which is not to be confused with a real estate agent. Unlike informal appraisals from realty agencies, a valuation can be used for formal situations such as settlement proceedings and taxes.
How do I get a property valuation report?
If you need a property valuation report in Melbourne, the best way to get one is to call a professional property valuer. Alternatively, you can get a computer-generated valuation report online, which is very convenient and usually free. Just note, that these online property valuation reports may be generated using outdated or incomplete data to create the report. They also wouldn’t be customised for your exact situation.
To get a good and accurate valuation report from a valuer, make sure that they are:
- certified by the Australian Property Institute (API);
- local to your area; and
- a specialist in the type of valuation you need.
Types of valuation reports
There are many types of valuation reports. Each one can be made for any type of property such as residential homes or complexes, commercial buildings, and industrial properties. Here are some of the most common types of property valuation reports you can get from a valuer:
Retrospective property valuation report
As mentioned above, a property valuation is usually done for the current value of a property but when it comes to retrospective property valuation reports, the market value of the property is a thing of the past.
A retrospective valuation is a report of the property’s value as it was at a certain date in the past. It is a very common type of valuation often used for taxes or the handling of deceased estates.
Pre-sale valuation
A pre-sale valuation is a report of the current fair market value of the property. The owner of a property will ask for this valuation report so that they can have an accurate idea of how much their property could sell for if it was sold that very same day. It is an excellent way to manage expectations and makes a great tool when negotiating the purchase price with prospective buyers.
Pre-sale valuation reports a list of the local comparable sales in your local area which can give you a good idea of how your property will perform on the market.
You can also get a valuer to perform a pre-purchase valuation which is a very similar report made specifically on behalf of the buyer and ensures they are well-informed before they commit to buying the valued property.
Mortgage valuation
Banks will never approve a mortgage without first receiving a property valuation report. If your loan is high-risk, they will require a valuer to come and inspect your property. Depending on the lender that you approach for your loan, you may get a bank valuation or an independent valuation. With a bank valuation, the valuer is either an in-house property valuer or a contracted valuer. The bank valuer will examine your property through a biased lens. That means they’ll be looking out for the bank’s best interests and not your own.
Probate valuation
Unfortunately, a part of life is losing our loved ones. Once a dear one has departed leaving behind a last will and testament, the named executor will have to apply for a Grant of Probate. The probate confirms that the will is true and allows the executor to distribute the assets fairly. These situations can attract opportunists and having a probate valuation report can help to prevent disputes from arising.
Valuation for Divorce or Separation
During a divorce or separation, the issue of what to do with the property is unavoidable. In many cases, the property is left to one of the parties and the other is paid for their share. In some cases, there is only one named owner on the title, and they wish to transfer this to their other party. In either case, a property valuation report can assist by confirming the value of the property and ensuring that the division and/or transfer of the property is fairly handled.
How long does a valuation report last?
In general, a property valuation report is valid for up to 90 days. Different types of valuations and the purpose of your valuation may alter the lifespan of your report. For example, a retrospective valuation report may be valid indefinitely as it will always be a representation of the property’s value, at a certain time. However, even in this case, the report may still need to be adjusted to account for inflation or changes in currency.
How much does a property valuation report cost?
The prices for a property valuation report are dictated by the property valuer you choose to hire, the type of valuation you require, the location of the property and the size of the property.
The only way to find out how much the report is going to be is the request a quote from your local property valuer.