Frequently Asked Questions

What is an independent property valuation?

An independent property valuation is a legally certified document that aims to determine the accurate market value of the subject property using objective data and research. An independent property valuation can be used for a variety of purposes and is eligible for submission in a number of formal circumstances such as government applications, taxation compliance, and through the courts.

An independent property valuation is conducted by a certified valuer with an extensive background in their local property market. As such, an independent property valuation will provide an objective analysis without any conflict of interest or bias.

What is involved in conducting a property valuation?

A property valuation will include an on-site inspection and a thorough investigation of the subject property and its local property market using property databases. As such, a property valuation is based on the analysis of over 200 variables to determine its accurate market value.

The certified valuer will include researched variables such as the property’s condition, any ancillary improvements, fixtures and features, comparable sales, and underlying land value. In addition to this, a property valuation will also include an investigation of external factors such as any environmental risks, and proximity to local shopping districts, schools, public transport, and infrastructure.

What is the difference between a retrospective and current market property valuation?

A current market property valuation aims to determine the present market value of the subject property. As such, it is only valid for 90 days from the date of inspection to account for any changes in the property market.

On the other hand, a retrospective property valuation provides the same amount of information, however, will be focussed on comparable sales from a previous point in history. As such, a retrospective property valuation is commonly used for taxation and government applications to ascertain a value from a previous date.

What is the difference between a real estate agent appraisal and a property valuation report?

A real estate appraisal seeks to determine property value based on an estimation to dictate a potential selling price. A property valuation on the other hand, is completed by a certified industry expert based on a thorough investigation of evidence and property data.

As such, a real estate appraisal can contain a hidden agenda to want to sell the property and is not eligible to be used for any kind of legal purpose and will not be accepted by any governing body.

A property valuation report, however, will provide you with a professionally detailed document that is legally certified and completed without any kind of conflict of interest.

What are the valuation methods a property valuer use?

When valuing real property, there are several methodologies that are used depending on your specific valuation requirements. There are, however, three methodologies that are at the forefront of the valuation process:

• The Direct Comparison Approach: this allows the property valuer to directly compare the subject property to other similar properties in the local area while investigating over 200 variables.
• he Summation Approach: This approach is used as an additional check to measure the replacement value on any improvements. The property valuer will then depreciate this by the age of improvements and calculate this against the underlying land value.
• The Capitalisation of Net Income Approach: this is saved for commercial valuations and uses the net rental income of the subject property. The net rental income will be capitalised at a rate taken from local comparable sales of similar properties.

What does a property valuer include in a valuation report?

When completing a valuation report, the property valuer will ensure a thorough, professionally detailed document filled with valuable information of the subject property and local market. As such, the property valuer will include details of the subject property including council zoning, environmental risk factors, proximity to shopping/business districts and public transport.

The property valuer will also include a detailed market analysis with comparable sales of similar properties. As a result, you will receive a comprehensive analysis of the subject property that will provide a clear understanding of the property to make an informed decision.

What is required to become a registered API property valuer?

Becoming a registered API property valuer takes an average of six years of rigorous training and professional practice before receiving the certification to value real property. As such, the property valuer first needs to complete tertiary education via the Australian Property Institute (API) before completing two years of industry practice via a traineeship. Once this is complete the property valuer will need to sit a final interview before receiving registration.

As a result, a registered API property valuer holds extensive industry expertise to help create certainty and minimise risk with any subject property. Their qualifications also allow them to complete legally certified valuation reports for a variety of purposes and are eligible for submission via the courts, State Revenue Office, and other governing agencies.

What is the difference between a certified property valuer and a real estate agent?

While both professional can provide a determined value of a subject property, a real estate agent does not hold the qualification nor the correct industry experience to provide accurate advice on the valuation of real property.

While a real estate agent has knowledge of the local area, they are not certified to provide an accurate valuation and can only offer an estimation based on what the property is believed can be sold for. As such, this advice will likely be associated with bias.

A certified property valuer will go through extensive training to become an industry expert and is qualified to extensively research any subject property based on objective data. A property valuer will be able to provide a well-informed, professional document free from any kind of conflict of interest.