How do I find out what my property is worth?
When searching online, you may find several methods to calculate a building’s value. You might even run into a free property valuation tool or calculator that lets you take a DIY approach. However, only one approach can claim total accuracy. That’s an independent report from a Certified Practising Valuer (CPV).
Independent research can only take you so far. Certified property valuers in Sydney are trained and accredited to navigate the ever-changing market.
Their experience allows them to:
- employ proven methods to calculate any property’s value
- utilise the extensive market databases available to them
- guide you along the process
- and guarantee an objective stance
If you need a valuation for tax or legal purposes, a real estate valuation calculator simply won’t cut it. That said, there is a more legitimate option for those needing a faster, cheaper, and fully remote property valuing service.
It may also help to know what kind of properties can be independently valued. The short answer is any kind.
The most common types of properties that undergo valuations include:
- residential property
- commercial property
- industrial property
- and retail property
Contact a CPV for all of your valuation needs. Real estate investors and business owners alike all stand to benefit from an accurate, market-related statement of value.
How to get an accurate property valuation
The first step in ensuring your report is accurate is to hire a sworn valuer or CPV. To be recognised as a licensed valuer, CPVs are accredited by the Australian Property Institute (API). The training they receive is second to none.
CPVs are uniquely prepared to:
- conduct all manner of physical inspections on any property type
- assess a business’s assets with the same accuracy they do buildings
- thoroughly research the market to compare your property to similar sales
- and ensure your valuation is recognised by the courts should you require it
Beyond that, no property valuation calculator will provide you with the same comprehensive results as a CPV’s methods. Their singular API training has prepped them on three major approaches to deriving a property’s value.
These are:
- the direct comparison method
- the summation approach
- and the income capitalisation approach
Direct comparison sees your valuer comparing your asset to similar ones in the same area. It involves analysing sales prices to help determine the value of the building.
The summation approach is a means to calculate the costs involved in building your property. It also accounts for the price of any improvements made.
Finally, the income capitalisation approach uses the income generated by your property to determine its value. These methods apply to everything from a rental pre-purchase services to insurance valuations.
Is this different to a bank valuation or real estate appraisal?
Neither is considered the best method for calculating value. Real estate appraisals amount to informed guesswork. They are calculated only with the sale (and therefore commission) in mind. Bank valuations are done to
An independent property valuation is the best choice for accuracy and utility. They are impartial, tailored to fit your requirements and based on verifiable market data. These standards apply to everything from compulsory acquisition valuation to business valuation.
Finally, unlike these appraisals, independent valuations can calculate property value based on either the current or past date.
Can I get a property valuation online?
If you need a property valuation done online, you may be in luck. Sometimes a physical inspection simply isn’t an option. Perhaps you’re renting out a busy office space or are invested in an upcoming development.
Should that be the case, a desktop property valuation is your best option.
As the name suggests, these can be performed remotely. Your valuer will not conduct an interior or exterior inspection of the property. This approach leans into the research portion of the valuation process.
CPVs have access to the most exhaustive databases available to any property professional. This allows them to perform a thorough analysis of your area without an inspection.
It should be noted that desktop valuations are not as accurate as the full-service option. After all, a thorough physical inspection is an important part of the process. Despite this, a trained valuer will work with developers and real estate agents to fill in the gaps as best as possible.
Regardless, remote valuations are generally more suited to low-risk investments. They are a far cheaper and quicker option but can’t guarantee the same standards for accuracy.
If possible, opt for at least a kerbside valuation. This allows your valuer to perform an exterior inspection.
Closing thoughts on real estate valuation tools
Don’t rely on free online tools; hire a professional for your next real estate valuation. You want a valuer trained by the API to perform valuations with objectivity and accuracy.
A CPV will:
- employ the direct comparison, summation, and income capitalisation approach
- utilise every source of information available
- collaborate with other property professionals as needed
- and work with transparency, keeping you informed across the process.
They are trained to conduct valuations on all sorts of properties including residential and commercial properties. This is beyond the scope of any online property valuation estimate, real estate appraisal or bank valuation.
Only a CPV can personalise your service to fit your precise needs. They are trained to conduct inspections, make market comparisons, and deliver valuation reports at either the current or retrospective value.
If an inspection isn’t on the cards, consider a desktop valuation. They are:
- quick, painless, and efficient
- carried out remotely
- focused on market research
- and recommended for low-risk investments
To find out if a desktop valuation is right for you, or to receive a free quote on another service, reach out to a qualified valuation professional today.