All valuations come with their own set of requirements. When writing up our valuation reports in Melbourne, in general, we follow the International Valuation Standards (IVS). Following these standards of a valuation report, it will include such details as:
- Purpose of the valuation: What is the exact reasoning for the valuation, for example, to prove the market value during a property settlement.
- Date of the valuation: The date of the valuation allows relevant authorities such as a lender or judge to determine the validity and relevancy of the valuation report you are providing.
- Method/s used: There are many different methods used to conduct a valuation, only some are acceptable in certain circumstances. The most used and accepted method is the comparison approach.
- Sources of information: The transparency of the sources used for your valuation allows relevant parties to confirm that the report was completed correctly.
- Assumptions made: There are times when a valuer may make assumptions to complete their valuation. These assumptions must be disclosed and an explanation of how the assumption was made should also be included.
- Previous valuations: A previously conducted valuation may be used if appropriate, however, there must be an explanation as to why this valuation is still relevant and adjustments may need to be made.
- Disclosure of relationship with the valuer: In many formal situations, valuations should be conducted by independent valuers. That is, they have no personal interest in the outcome of the valuation. If a valuer has a close personal relationship with the client, then this must be disclosed. Note this may result in your valuation being invalidated. If you choose not to disclose at all, you may face certain penalties, depending on the surrounding circumstances.
- Valuer details: To prove the valuer is qualified and appropriate for the valuation, their details must be provided.
Our valuers have conducted countless valuations for tax purposes over the years. We are the reliable choice to help with your tax valuations, property settlements and more. If you would like the assistance of one of our API-certified valuers, enquire today to make a booking with a specialised valuer.