Property Valuation Reports: What You Need To Know?
A property valuation report is a certified document prepared by a registered and independent valuation firm. The report serves as an official assessment of the subject property’s worth and is performed by a qualified valuer who holds all of the necessary qualifications.
There is a wide range of reasons why both buyers and sellers of property purchase registered valuations. Ranging from pre-purchase/pre-sale advice to insurance or taxation purposes. There are many reputable firms offering valuation services in Perth.
Ultimately, knowing the worth of your property is crucial, and official valuation reports serve as the most accurate method of getting this information. Professional valuers adhere to the guidelines set out by the Royal Institution of Chartered Surveyors (RICS) to maintain a consistent standard of quality.
While there are other ways to get an estimate of a property’s value, none hold the same degree of accuracy or legitimacy. They may serve as a useful guide at first, but you will still need a registered valuation to guarantee an unbiased report in accordance with regulatory requirements.
How accurate is a property valuation report?
When it comes to accuracy, an independent and registered valuation service is seen as the highest possible standard.
As assigned valuers are expertly trained and educated in property examinations, they are careful to be as precise as possible. A combination of reliable methodologies helps the valuers reach a definitive numerical worth.
Valuation reports are performed complying with international standards, and each expert is registered with the Australian Property Institute. The checks and balances in place help to maintain a reliably high standard.
Getting a real estate appraisal from a realtor or using an online valuation tool does not hold the same degree of accuracy as the above. These services are not subject to the same regulatory and legislative requirements, guidelines, and standards.
The inherent bias of the real estate agent negatively impacts the reliability of the report. Furthermore, online valuation tools serve as an early guide rather than a final valuation.
If you want to be absolutely certain about the value of your property, an independent and registered valuation is the best way forward.
How much is a property valuation report?
The cost of a valuation report will largely depend on the purpose and the scale of the report. The more complex and comprehensive a report is, the higher it is likely to cost. As each report is tailor-made, there is no universal cost for valuation reports.
With no set fee, the best way to get an idea of how much a report will cost is to request a quote from a valuation firm according to your specific set of circumstances.
Residential valuations are likely to be cheaper than commercial property valuations as they are less complex.
Reports can be in long-form or short-form versions, depending on the client’s request and the reasons for the valuation. Valuations that are needed for litigation or legal reasons are likely to require more detail, and will therefore be a higher price.
You may have seen some places offering free property valuations, but this is unlikely to be from a registered and independent firm, and might not be fit for purpose.
How to get a property valuation report
Now that you know what a property valuation report is, you may be wondering how to go about getting one from a reliable and trustworthy source.
Some of the steps you can follow when looking to get a valuation report are as follows:
Do your research
First, do the necessary research to make sure you know what type of valuation report you need, and then identify reputable firms that offer this service.
Check reviews
Looking at what previous and existing clients are saying about the firm can be a good indication of the type of service you are likely to receive. A barrage of negative reviews points to unreliable and inefficient service.
Ask about qualifications and experience
Make sure that the valuers at the firm are registered with the Australian Property Institute (API) and have all the needed certifications. In addition to this, valuers who have worked in the industry for years are likely to provide you with a service that reflects such experience.
Compare costs
The price range across the different firms is likely to vary, and it might be in your best interest to compare the costs of the different places. Remember, price alone should not be the basis of your decision, but rather the potential value for money.
In Conclusion
When it comes to determining the worth of a subject property, a property valuation from a registered and independent firm is your best bet.
There are a few things to look out for when searching for a reliable firm, such as experience, qualifications, and whether or not they cater for your valuation needs.
The cost of a valuation report will vary and is dependent on the scale and purpose of the report. The more detailed and extensive a report is, the higher the price.
For more information on property valuation services in Western Australia, speak to one of our qualified property experts today.