Retrospective Property Valuations
It is not something you hear every day but anyone dealing in real estate has likely needed to order a retrospective property valuation.
This might also be referred to as a backdated valuation as that is exactly what it is. A retrospective valuation reports on the value of a piece of real estate at a specified point in time. It could be 30 years in the past or it may even be a few months ago.
When do you need a retrospective valuation?
The most popular use for a retrospective valuation service is determining one’s capital gains tax. It is generally ordered by property investors as homeowners are normally exempt from paying CGT, but this will depend on your situation.
Other common use cases include:
- Divorce or separation settlements
- The handling of a deceased estate
On these occasions, it is important to know the value of the property on a certain date, this may be the date of death, divorce, or sale.
How can you benefit from a retrospective property valuation?
Without the proper resources, it will be difficult to find out the past value of any form of real estate. You may be able to figure out an estimate, but to know for certain you will need the service of a professional valuer. They use recognised methods that reliably result in an accurate retrospective value. Through their service you will have a:
- Precise backdated value adjusted to today’s dollar.
- Comprehensive report on how the value was determined.
- Legally admissible document fit for court or tax purposes.
How are retrospective property valuations conducted?
The process of conducting a retrospective valuation is not much different to a report on the current market value. The main difference is the data. Valuers use the market data on the required date to see what comparable properties were being sold for at the time.
This, of course, is comparing the property to how it was at that time as well. Improvements that have been made since will not be considered. To aid in the accuracy or to support their findings, a valuer may visit the property or use historical photos. It is not always necessary, but it can be a part of the process.
Overall, the considerations of a valuer when conducting a retrospective valuation include:
- The build/construction materials of the property.
- Proximity to local shops, schools, parklands, and other amenities.
- The zoning of the land.
Why choose us to perform your retrospective valuation?
Melbourne Property Valuers Metro has been an industry leader since 1997. We are accredited local experts with more than 300 years of combined experience.
We are trusted by clients throughout the Melbourne metropolitan area as we provide:
- Excellent customer support
- Reliable and accurate reports
- Quick turnarounds
- Affordable fees
Frequently Asked Questions:
Q: Can you backdate a property valuation?
Yes, valuers are experienced in producing backdated property valuation reports for several purposes including legal settlements and taxation.
Q: What is retrospective valuation for CGT?
A retrospective valuation for CGT is a report that is made to determine an investor’s capital gains tax liabilities. This is done by finding the value of a property at the time it was originally purchased and then calculating the difference to its market value on the date it was sold.
Q: What is a retrospective property valuation for probate?
For probate, a retrospective property valuation is a formal assessment of value at the date of the death of the deceased. This is an essential piece of information that is needed for distributing or transferring assets and real estate justly.
Q: What is the purpose of a retrospective appraisal?
The purpose of a retrospective appraisal is to define the value of a property at a historical date. This may be a few months in the past or many years.
Order a retrospective valuation today!
Wondering about your backdated property value will be a thing of the past.
Call one of the specialists here at Melbourne Property Valuers Metro to receive a free quote on a retrospective property valuation. If you’re happy with the price, then your valuation will soon be underway.