An appraisal is a price guide usually set by real estate agents of what a property could potentially be achieved out on the open market based on current buyer demands and conditions and may not necessarily be based on recent sales evidence. In addition, an appraisal by a real estate agent usually has inherent bias as they may tell you a figure what you want to hear in order to gain the listing.
A property valuation however, is a legally recognised impartial property report of an expert’s opinion of the subject property’s market value based on similar properties that have recently sold and settled. The valuation itself can only be conducted by a qualified valuer with all the necessary education and experience and can be utilised for a variety of legal purposes including; property settlements, stamp duty, capital gains tax and deceased estate purposes, just to name a few.
At Blanco Property Group we will guarantee that our figure is accurate and will back ourselves if it is to be used in court proceedings.
Usually within 48 hours of the initial enquiry or at a later convenient date for you.
At the property inspection, the valuer will;
Generally, it takes 48 hours to complete a short form residential valuation report within the metro area and up to 14 days for long form commercial and industrial valuation reports.
At Blanco Property Group we will always provide you with an estimated turnaround time, so you will always know when to expect your report.
All valuation reports are prepared in accordance with the Australian Property Institute standards including;
A valuation report is valid for up to three months, as the property market can vary considerably outside of this period.
The Capital Improved Value of your property for rating and taxing purposes (also referred to as a statutory valuation) is not the same as Market Value. The main difference is that a statutory valuation does not require a physical inspection of the property, rather the value is determined by calculating the difference in general market movements from the previous year’s assessment using statistical models within a particular area which is simply applied on a mass scale.
Market Value on the other hand is “the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion”.
At Blanco Property Group, we will only conduct a valuation that we have fully inspected in addition to analysing the most recent comparable sales or leasing evidence available to ensure an accurate market based valuation and detailed quality report.
All valuations are quoted on an individual basis depending on; location, property type, estimated value range, complexity, purpose and report type.
Be rest assured that all our fees have no hidden fees or charges with all quoted fees including GST.
The property inspection itself can take anywhere from 10 minutes for a small unit or apartment up to an hour or so for commercial buildings with multiple tenancies.
As a guide, a residential property generally takes 20 to 30 minutes inspect.
This would have to be by far the most common question a valuer would be asked once the property has been inspected.
As a general rule, the valuer cannot provide a single value figure to the instructing party by the end of the inspection, as this is only the first part of the valuation process. The valuer will however discuss any preliminary findings at the inspection.
The most common way the value of your property is determined is by the sales comparison approach which is based on comparing similar properties that have recently sold in your area and making necessary adjustments for any differences.
This may include but not limited to; land area, building size and age, street appeal, condition, quality of fixtures and fittings, number of bedrooms, bathrooms, features, added external improvements, topography, accessibility, zoning, potential alternative uses, repairs/if any, marketability and location.
As for commercial and Industrial properties, values can be determined by utilising the capitalisation of net income approach which is primarily based on the analysis of market rents and rates of return on comparable investments that have sold.
The summation or depreciated replacement cost approach is another way the value of your property can be determined. By firstly establishing the value of the land and summing the depreciated replacement cost of the existing improvements, will result a market assessment.
The valuer will determine the most appropriate approach and in some instances two methods may be utilised as a check against the other.
Yes, a property valuation can be completed without an onsite inspection by undertaking alternative restrictive valuation practices including; a kerbside valuation, desktop assessment or virtual valuation.
A kerbside valuation – is also known as a driveby valuation with the valuer taking an external glance from the front kerb of the subject property. The valuer will not only get a general sense of the external presentation, including the dwelling’s style, condition and external improvements but also recognise the type of surrounding properties within the locality.
A desktop valuation – is completed from the comfort of the valuer’s office utilising third party information to establish an indication of value. This information can be at times unreliable, as the third party property databases will most likely not have updated their data at the same time as a renovation has been completed, for example.
A virtual valuation – is the latest valuation practice which connects the property owner with the valuer using a software application via their smartphones from a simple internet connection. The property owner needs to have a camera on their mobile device which allows the valuer to feel as though they are inspecting the property themselves.
As a general rule, we do not undertake any of the above valuation practices, as we believe unless the valuer has fully inspected the property, there will always be some inherent risk associated with providing an accurate valuation figure. At Blanco Property Group we will not only ensure best valuation practices have been met by conducting a thorough inspection, we will provide a detailed valuation report and accurate valuation figure. That’s our guarantee to you.
Of course you can. We are always happy to further clarify any areas of the report with you.
All valuers at Blanco Property Group are fully licensed Associate members with the Australian Property Institute and hold Certified Practising Valuer status.