What is a sworn valuation?
You may have heard of an independent property valuation; well, a sworn valuation is essentially the same thing. Both refer to a rigorous process carried out by qualified professionals to determine the value of any given type of property. The process results in a legally certified valuation report.
Sworn valuers in Melbourne are capable of carrying out a wide range of services. They are second to none in their methods and standards for quality, impartiality, and transparency.
A sworn valuation can be delivered in long or short form. They could aim to establish either your property’s current or retrospective market value. Property owners might seek out a remote service or one that includes an internal or external inspection.
Most sworn valuation reports will:
- analyse recent property sales comparable to yours
- conduct a review of the surrounding area in general
- include details of an exterior, interior, or full inspection
- and cover you for various legal or administrative requirements
The specifics are likely to change depending on your needs. Regardless, a sworn valuation is the full picture of your property. It utilises every resource available to ensure accuracy.
Your report is customised to fit your needs and the price is adjusted to match. To protect your investment, seek out the service of a licensed sworn valuer.
What qualifies a sworn valuer?
A sworn valuer, or Certified Practising Valuer (CPV), is a uniquely qualified property expert. They are trained to combine a series of methods and information sources to carry out a property valuation.
To work as a CPV, these professionals must pursue training and registration with the Australian Property Institute (API).
API accreditation as a CPV demands that candidates:
- complete a specialised course designed by the API
- sport at least two years of recent experience valuing property
- and graduate from the highly regarded API training program
Sworn valuers are primed to assess the likes of:
- residential
- commercial
- and industrial properties
They are often compared to bank valuers or real estate agents. However, only a valuation from a sworn valuer is generally considered to represent objective value
There are a few key factors that set them apart:
- bank valuations are conservative and done on behalf of a lender
- real estate appraisals are estimations aimed at earning commission off a sale
- and sworn valuations are legally recognised, impartial reports of a property’s value
Finally, CPVs have the knowledge to value your property at either the current or retrospective date. The former is most common in buying and selling affairs. The latter is a critical step in determining tax liability for various types of property.
What does a sworn valuation cost?
Sworn valuation is largely a matter of getting what you paid for. There is no hard and fast ruling or blanket price that covers all valuation services. CPVs will tailor your quote based on the needs and specifications of your property valuation.
As such, requesting a quote is your best bet when planning a valuation.
For now, know that the cost of your valuation is dependent on:
- the overall scale and complexity of the service
- whether you’re seeking out a current or retrospective valuation
- the type of property you’re assessing
- and the greater purpose of the report, to name but a few
Some services may market themselves with cheap property valuations. These should be treated with scepticism. Valuation is an intricate, highly specialised process. Pricing accounts not only for the above list but also for the expertise, experience, and methodology your valuer brings.
Sworn valuation services
A certified valuer is trained to provide a wide range of services. As you’ll soon find, these services extend far beyond the process of valuing a building for sale. The following list represents the tip of the iceberg.
Reach out to your nearest sworn valuers for a better understanding of all the services they provide.
Asset register valuation
A sworn valuer’s training doesn’t end with valuing buildings. An asset register refers to a comprehensive list of a business’s assets. CPVs leverage extensive market data to determine the value of the entire register.
Capital gains tax valuation?
Capital gains tax is paid upon the sale of a property that has increased in value since it was bought or acquired. A valuation is completed to determine the property’s value on the date it was acquired to calculate the capital gain.
Summarising sworn property valuation
Remember, a sworn valuation is a method of calculating any property’s value. It involves a combination of technical processes and research.
Sworn valuers are:
- registered members of the Australian Property Institute
- highly experienced in performing valuations for any kind of property
- and trained to provide impartial reports that are legally recognised
Their services are easily distinguishable from those of real estate agents or bank valuers. The standards and training provided by the API ensure their work is held to high standards.
The process of a sworn valuation involves:
- conducting exhaustive market research
- learning as much about the property as possible through inspections or building plans
- and comparing the subject property to similar nearby sales
CPVs can provide a long list of services, from valuing a business’s assets to calculating your capital gains tax. To find out more, or receive a free quote, call one of our qualified sworn valuers today.