Home valuation.net.au

Consumer guide to home valuations and house appraisals in Australia

What is a home valuation by a registered valuer This is a guide to help explain the service of home valuations or property valuations as performed by a registered valuers. As already descibed this is a different service to that of a free appraisal on your home from your local real estate agent. For a registered valuer to provide you with a valuation on your home or property you are engaging a paid professional service. A valuer is a property industry professional with qualifications obtained from university or equivalent educational organisations.

Property valuers, therefore provide an independent opinion as to the value of the asset, usually supported by reference to comparable sales of similar assets in and around the locality.

Most valuers are members of the either the Australian Valuers Institute (AVI) or the Australian Property Institute (API).

A valuer determines the value of property based upon market conditions at a given time.

Registered valuers clients may include banks, government departments, property developers, insurance companies or building owners and although practices may vary from state to state in Australia the valuations provided are generally used for thing like :

• family law settlements
• assessing mortgages
• assessing rent for leases
• assessing the value of assets
• insurance compensation
• establishing the value of properties for sale
• the calculation of land tax, municipal rates and stamp duties on property transfers and loans

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A formal valuation can only be conducted by a qualified valuer who has undertaken prescribed education and training in this field to ensure that they take into account all features and issues relating to a particular property.

A formal valuation will take into account things such as:

• The location of the property
• Features of the home
• The building structure and its condition
• Building/structural faults
• Caveats or encumbrances on the property
• Local Council zoning
• Additional features of the property (particularly relevant in rural areas)

A real estate valuer works in the valuation of city, suburban or country real estate and in particular areas such as commercial, industrial, residential, rural, financial reporting, hotel and business properties, or plant and machinery. They may perform the following specific tasks:

• consult with solicitors, surveyors, town planners, architects, accountants, property developers, owners and financiers
• analyse property investment returns
• act as expert witnesses to argue on behalf of people whose property has been repossessed

Getting a home valuation when buying

The purchase of real estate is one of the biggest financial commitments that most people ever make in their lives.

Most financial or lending institutions will require that a home or property valuation is conducted prior to a loan being approved, depending on the amount being borrowed as a percentage of the value of the property.

Obviously the bank wants to know that if the individual they are lending the money to has problems repaying the loan, that the banks investment is safe and the property can be sold to recover the amount that is owing on the loan.

Purchasers also need to seriously consider getting a property valuation done even if it is not required from a bank.

This may be particularly relevant in the senerio of purchasing an investment property where you are buying out of your own home town or it may be perhaps a property or unit under construction or of the plan.

Some times these decisions are expected to be made quickly and or hastily and maybe even under pressure from a skilled marketer.

To avoid being a purchase that is regretted when it is too late to back out, it is advised that a registered valuer is employed to confirm the properties value.

A registered valuer can usually complete a valuation within a couple of days 2 days, so this generally will not hold up the purchase but will ensure you can proceed with peace of mind.

Summary

You can better enlighten yourself by ordering a valuation from a registered valuer, i think a paid valuation is definately a good idea when purchasing.

A paid home valuation by a registered valuer may be also be appropriate when you are selling depending on your relationship with your real estate agent.