Property evaluation in Melbourne

Why You Need to Understand Your Property Value

By John Anderson

The value of your property is dictated by a number of variables including property type, location and environmental factors. However, an accurate property value is also deciphered from comparable sales, market analyses and the larger economic scope. While these factors may seem easy enough to research, seeking out a professional property valuer will give you the best chance of understanding the correct market value for your property.

A property valuation report is a professionally detailed document that outlines an in depth compilation of variables that all contribute to the property’s accurate value. A property valuer should have the appropriate qualifications, skills and local experience in order to determine an accurate property value. With this being said, there are a number of reasons why having an accurate property valuation can be beneficial for you:

Renting out or selling a property

Seeking out an accurate property valuation is essential for either selling or renting out your property. Firstly, an independently determined valuation can help with setting the correct price for your property. Furthermore, seeking pre-sale advice can help you decide on whether selling your house will be financially beneficial for you.

If you’re thinking of renting out your property, then an independent property valuation is required by the tax office to help in calculation your future capital gains tax. By law, you will need to report how much capital gain you have earned on your property, an independent valuation is required to ensure you are reporting its value at either a current market or retrospective date.

Buying a property

Over paying for a property can have a detrimental impact on your finances in terms of the mortgage you pay and when it comes to selling the property. Seeking out a pre-purchase valuation can help you make an informed decision when placing an offer on a property or help you prepare for an upcoming auction.

Seeking a valuation doesn’t have to impose on the existing owners either. In fact, you can request an external inspection so the valuer does not have to visit the property or perform an inspection. Most importantly, be sure to seek out an independent property valuer to ensure that the value is being reached based on objective data and evidence, this will ensure complete transparency and confidentiality.

Property Transfer

When transferring a property between parties, it’s important to ensure that the property is valued at the correct and current market value. When dealing with the taxes and stamp duty that comes along with owning a property, it’s paramount that the correct amount is payable to the State revenue and taxation offices.

In cases like these, an independent valuation will be able to determine the true worth of the property in order for a fair transfer to be made. The determined value will then be able to dictate the amount of stamp duty and other taxes are to be payable.

Taxation Purposes

Taxes such as stamp duty, CGT, land tax and any other government benchmarks require a property valuation in order to adequately calculate the amount of you have to pay. Valuation reports are also required when setting insurance premiums and levies in apartment strata scheme, so be sure to use an independent valuation company to ensure you’re receiving an accurate value.

For Mortgage Purposes

Seeking an independent valuation can help you secure your mortgage loan amount with your bank. In this case, a bank will require a valuation report to make sure the property can be sold in the event that the loan was to be defaulted. Seeking a current market valuation will give reassurance to both parties as to the true value of the property.

Dispute Resolution

One of the most common purposes for seeking an independent property valuation is to ensure that the property can be accurately valued in accordance to the current market value. Whether it’s for mediation, litigation or family law to ensure the fair division of assets between parties or to resolve rental dispute. A valuation or rent review report will ensure that a fair amount is determined. This is also the case for deceased estate or probate purposes.

Seeking out a property valuation has a lot of value when it comes to making your next property related decision. For more information in regard to other areas a property valuation can benefit you, seek out our list of valuation services.