Are Property Valuations Free in Australia?
A property valuation is a incredibly helpful service used to outline the true value of a property in the existing market conditions. Property valuation services in Tasmania are often wide-ranging and can serve to benefit all sorts of individuals, organisations, and investors.
Reports are prepared by highly qualified professionals who are registered with the Australian Property Institute (API) and hold the necessary certifications. As independent valuation reports are used in plenty of legal, private, and business negotiations, only those who have been specifically trained in the art of assessing property may do so.
Valuers follow international valuation standards and approach every task with the highest standards of due diligence and care. By carefully preparing every report in accordance with the relevant regulatory requirements, there is no risk of the report being rejected as an official assessment.
Industry practices are followed to maintain the necessary quality standards. An independent property valuation is the most reliable method of assessing your property’s worth and, depending on your circumstances, it could save you both time and money.
How much do independent property valuations cost?
Unfortunately, property valuations are not provided as a free service. While there are valuation tools and services you can find for free, they do not provide quite the same standard of accuracy and legitimacy.
The cost of an independent valuation is influenced by a number of factors and will vary between firms. A few of the most important considerations include:
- the size of the property
- the purpose of the report
- and the level of detail required
As such, the price can range from a few hundred dollars to a few thousand. Requesting a quote from a reliable and trustworthy firm will give you the clearest idea of how much a valuation is likely to cost
Now if you’re wondering who offers a free property valuation, you can turn to online valuation tools or real estate appraisals.
An online valuation tool uses automated valuation models to estimate a property’s price based on the information you provide. These can often help buyers or investors of property in the early stages of deciding on a place to purchase.
A real estate appraisal is performed by a real estate agent who is assisting with the purchase or sale of a property. This means that they have an interest in the final report, and there is an internal bias that may knowingly or unknowingly impact their assessment.
What types of property valuations exist?
Valuation services are available for all sorts of properties. Valuers use a variety of different approaches when preparing valuation reports, and the method chosen is largely dependent on the property being inspected.
Some of the most commonly performed valuations are:
Residential valuations
A residential valuation is a thorough assessment of a home to determine its exact worth. Valuers mostly use a direct comparison approach when preparing residential valuation reports. This involves an analysis of properties with similar characteristics that have been sold in the area.
Valuers will get the average sale price, and make adjustments according to the relevant features of the home. Hundreds of internal and external factors are considered and a final value is reached.
Commercial valuations
A commercial valuation is a service used to assess the value of income-producing organisations. The main approach for commercial properties is the income capitalisation method.
Valuers determine the net operating income (yearly income minus expenses) and divide it by the capitalisation rate to find the current worth of the property in the existing market. Additional factors such as size, location, parking, and zoning laws are considered too.
Rural land valuations
Rural land is mostly valued using the unimproved land value model. This means the land is assessed without taking into account additional structures and buildings added on.
The surrounding infrastructure and similar rural sales in the area are considered when preparing the report. The unimproved land value is the for which rural land could be expected to sell, without physical improvements such as houses, fences, clearing, levelling and earthworks.
Why get a property valuation service?
You may be tempted by the available free valuation services such as online tools and real estate appraisals, but the reasons to opt for an independent valuation service instead are plenty.
Some of the main reasons to get an independent valuation service include:
- The valuation report stays valid for 6 months after the completion of the inspection.
- The report can be used in all sorts of legal, private, and business negotiations.
- The service is an independent one with no risk of outside influence or inherent bias.
- Calculations are precise and cover every relevant detail.
- Valuers are qualified and specially trained in analysing properties.
- The relevant regulatory and legislative requirements are consistently met
- Valuation firms are for the most part vastly experienced
- Reports are custom-made to suit the needs of the client
Summary
A property valuation may end up being exactly what you need at some point in your life. These services, however, are not free. The free valuation services that exist, like appraisals and online tools, don’t offer the same degree of accuracy or reliability.
Valuers have the knowledge and skills to assess all sorts of properties including residential, commercial, and rural land. The type of property will determine the method used to calculate its value.
Professional valuers are registered with the Australian Property Institute (API) and have gone through detailed training programs to polish their skills.
There are plenty of reasons to choose an independent valuation over a real estate appraisal or online valuation service. Ultimately, an independent valuation is far more useful and has a much higher standard of legitimacy.
For more information on the available valuation services in Tasmania, our highly qualified experts can assist. Reach out today.
