Seeking out a property valuation is a crucial stage at some point for every homeowner. Whether you’re after pre-purchase/pre-sale advice or to help determine your upcoming stamp duty payment, a property valuation will be an inevitable part of being a homeowner.
A property valuation is a highly recommended process and is sometimes required depending on what the purpose of the valuation is. The most sought out reasons for seeking a property valuation can include:
- Deceased estate/probate
- Pre-purchase/pre-sale advice
- Transfer of a sale
- To assist in calculating stamp duty
- Capital gains tax – either at current market value or a retrospective date.
- Building insurance
While a property valuation is not always required, it will give you an accurate understanding of its current market value. Rather than only knowing an ambiguous range, a property valuation is based upon a broad range of information gathered by an industry expert. Having a qualified and registered property valuer at your disposal means that your property value will not be influenced by any agenda or bias, ensuring the property value is based on data and thorough research. Furthermore, it means the value of your property will be based on its current and fair market value.
How can a property valuation help?
Sometimes, seeking out a property valuation will usually coincide with times of grief and stress. Whether you’re dealing with a difficult sale or transfer, a deceased estate, or are in need to divide assets between two or more parties, a property valuation ensures that an agenda free approach is adopted to guarantee a fair market value is determined. In some cases, the division of assets or the sale of a property may be prompted by the courts, or because of compulsory acquisition. In these cases, it’s important to have an impartial valuation to maintain fairness and transparency.
Seeking out a team if independent property valuers ensures that the report will not only provide a comprehensive document, but it will also be based on thorough research. Furthermore, your property valuer’s extensive experience in the industry and local knowledge will mean their report will go towards providing an objective and impartial decision.
The work that goes into a valuation report is based on the information sourced out by the Valuer from inspecting the property. With this being said, a professional valuation report is a legally binding document that will be eligible for submission via the court systems and government agencies. Understanding the value of your home will help you correctly plan for tax time of you have a property that forms part of your SMSF, your potential stamp duty payments and to make the correct offer on a house.
While it may not seem like a property valuation can benefit you in the long term, it can potentially save you thousands in tax liability or mortgage repayments. Furthermore, an independent valuation is legally required to ensure your SMSF is ATO compliant for tax time as well as being required to for building insurance purposes. This is especially important for larger complexes and strata schemes who require a valuation to set an insurance premium. By under-insuring this could have a drastic negative impact if the building were to be damaged by flood, fire or natural disaster.
How is an independent Valuer different from a real estate agent?
It’s easy to assume that a valuation will be the same quality anywhere, however, this is not the case. An independent valuation is prepared by a property valuer who is bound to work in accordance with the research they have sourced. In saying this, an independent valuer is also bound by the quality reassurance and ethical standards and procedures of the Australian Property Institute (API).
While valuation services can also be sourced from real estate agents and banks, there is a level of bias within these fields. A real estate agent will always have the interests of the seller and themselves to make the highest profit manageable. On the other hand, banks tend to be more conservative.
An independent property valuer is tasked with providing a legally binding document that is compiled and prepared to suit the individual purpose of the valuation. In this report will be a detailed summary of the property as well as a comprehensive market analysis detailing any other external variables that will affect the property’s value.
Every homeowner at one point or another will require a property valuation – whether it’s a part of the buy/sell process, a tax or insurance requirement, a tool to help calculate stamp duty or required as part of mediation or separation. No matter what the purpose of the valuation, it’s important to seek out an industry professional to determine the true worth of the property.
Understanding your property’s true value is a valuable piece of information and can save you time and money in the future. Furthermore, seeking out an independent property valuer will ensure you’re getting up to date and well-informed information regarding your property and an accurate scope of the local property market.
If you’re in need of a professional valuation service for your residential, commercial, or industrial property, contact Melbourne Property Valuers Metro. You will be able to discuss your requirements and speak to an expert about our range of property valuation services.