There are many reasons you may require a property valuation, and the common factor in most these cases is that it will help you making major decisions or changes related to your largest asset. As such, you may have some nerves regarding your property valuation.
A property is a very important asset, and thus any decisions you need to make regarding the sale, purchase, or other matter will need to be informed by experts.
An independent property valuer is able to provide specialised information backed by extensive experience, compiled into your valuation report.
Although the contents of a valuation report may vary depending on the purpose of valuation and property type, here is what is commonly included:
The report will of course include an accurate current market value of your property as a whole, as well as an individual valuation assessment of the land, building and improvements if required.
This valuation is usually based on the condition of your property “as is” on date of inspection. However, you can also request a retrospective valuation if needed, and in these cases the value will be based on a specific date in the past.
Overall Summary of Property
Each valuation report includes a summary of the property. This section give a brief outline of a variety of factors of the property. The valuer will gather this information research from specialised databases, or during the inspection in person.
The overall summary includes general information relevant to the value, including:
- Title information
- Any restrictions or zoning on the property
- Site area measurements
- Date of building
- Building information such as number of rooms
- Use of building, whether residential, commercial or other
- If any essential repairs are required
- Any evident environmental issues
- Marketability of the property
Knowing the potential risks to a property is important when calculating the true value. Because of this, a risk analysis is included in each property valuation report.
This risk analysis outlines the evident risk present from a variety of factors and gives it a rating from low to high concern. The larger amount or higher rating of risks, the bigger impact these will have on the overall value of the property.
Risks analysed in this section of the report include market direction and volatility, location and neighbourhood, land and environmental issues.
Details of Land
The details of the land outlined in the valuation report of a property contains a more in depth description of the land.
This section of a valuation report will include details of the land such as access, immediate location in the street and general area- such as if it is a corner block or located behind another building.
It will also have details of the property location in proximity to local amenities such as shops, transport and schools. Additionally, information on the neighbourhood can also be added here.
Details of Main Building
The condition and features of the main building of your property play a major role in dictating the overall value. If you are getting a residential property valuation the main building will be the house or apartment.
During the inspection the valuer will note down information on the interior and exterior condition of your building, as well as the style, features and fixtures included and materials it is made of.
All of these details can have an impact on the value of your property. For example, a brick house is likely to be valued higher than a similar building that is made of weatherboard. Similarly, newer buildings with modern fixtures are likely to fetch a higher valuation than comparable buildings in the same area that were built at a later date.
Your valuer will consider all elements of your building, from the size down to the flooring and interior walls. Any upgrades or renovations will also be included in this section of the report.
Details of Ancillary Improvements
If your property has ancillary improvements, such as the addition of a deck, porch or patio this will all also be considered in your valuation and included in the report.
Ancillary improvements also include retaining walls, garden landscaping and any paving or paths in the land included in your property.
All of these additional elements are included in the overall value of your property.
Sales Evidence and Market Analysis
As well as information on the condition of your property itself, each valuation report will include relevant sales evidence and analysis of the local property market. This is the culmination of research conducted by the valuer, which is a vital part of determining the value of your property.
Calculating the current market value of a property is dependent on the market conditions, including extensive analysis of what comparable properties have sold for.
This is all included in the property valuation report, with a list of recent sales in the local area of the property in question. This list includes the address, sale price and date of sale of each comparable property.
Your report will also provide information on how these properties compare to your own in terms of size, condition and location. This will provide a framework of reference when determining how the value of your property matches up to the sales prices of these comparable properties.
Your valuation report can also include additional comments of any information your property valuers deems relevant to the final value.
In this section they will often add extra explanations to help you understand the valuation assessment they calculated.
If you require a property valuation, our valuers at Melbourne Property Valuers Metro are able to provide detailed valuation reports, and expert market analysis. All our valuers have at least 20 years of experience and are certified with the Australian Property Institute (API).
This ensures that all our valuation reports meet industry standards and are completed to the highest quality.
Contact our team today for a free quote, or to discuss your property valuation needs.