Property valuations offer significant benefits when establishing a fair market value for your property.
A certified practising valuer can help you do exactly that by undertaking independent and impartial assessments to identify your property’s value.
But how does a certified practising valuer differ from property appraisers? And what qualifications do property valuers need to become certified?
This blog post will explore why it’s essential that you find an experienced and qualified expert who can guide you through the process of buying or selling your home.
But First, What Are Property Valuations?
A property valuation aims to establish how much your property is worth, given the market conditions at a specific point in time.
There are numerous ways that a valuation can be conducted, including:
- kerbside valuations: which are typically used to check the condition of a property in instances where it’s unnecessary to inspect the inside of the property;
- Online valuations: also commonly referred to as online appraisals because they estimate the sale price of your property using an algorithm to compare recent sales statistics of similar properties using property data; and
- Independent valuations: these are generally produced in report form after a certified practising valuer has completed a physical inspection of your property.
Check out our article that breaks down the difference between online valuations and independent property valuations.
How Are Valuations Conducted?
To conduct a valuation, Certified Practising Valuers will generally consider the following factors:
- the size of the property;
- number and type of bedrooms (for example, are there two bedrooms and one room better suited to a home office?);
- the property’s fixtures and fittings (plant and equipment);
- the building structure;
- location and surrounding amenities;
- local council zoning;
- recent sales in the same area; and
- market conditions.
They’ll then detail how they conducted the report, their calculations, and your property’s approximate value in a valuation report.
What Is the Difference Between a Certified Practising Valuer and a Property Appraiser?
A market appraisal (typically conducted by a real estate appraiser) is intended to be a guide your property could sell for. In comparison, a property valuation (typically completed by a certified practising valuer) is a legally enforceable report based on various factors, not just sales statistics.
Appraisers in the Property Industry
A real estate professional generally offers property appraising services, free of charge, to help potential buyers estimate what they’ll end up spending or potential sellers to establish how much they could possibly sell their property for.
So, property appraisers can be helpful when you’re deciding whether it’s currently worth it to sell your property or be in the market to buy a property.
But they are not qualified valuers and can only provide a rough estimate using their knowledge of the local area and recent sale prices.
Certified Property Valuer
According to the Australian Property Institute, a certified valuer is someone qualified to produce valuations that are legally recognised because they have the necessary:
- minimum qualifications accredited with the Australian Property Institute;
- on-the-job training; and
- experience in the field.
The combination of their education, rigorous on-the-job training and experience in the field equip them to offer property valuations and give clients relevant and impartial professional advice in various areas.
For example, at Duo Tax, our Certified Practising Valuers (who are also members of the Australian Property Institute) offer a comprehensive suite of valuations, including:
- stamp duty valuations to ensure you get a fair market value calculation for your stamp duty obligations;
- capital gains valuation services to help calculate the tax you pay on the capital gain of your property;
- market assessment valuations that help you determine your property tax obligations;
- pre-purchase and pre-sale valuations to establish the highest amount a buyer and seller will agree on for the property on the open market;
- retrospective valuations which provide backdated or historical valuations to assess the value of a property at a certain point in time;
- land tax objection valuations to see if you’re eligible to object against council land tax assessments; and
- rental assessments and determinations to ensure that you’re receiving or paying the correct amount for rent for a property.
Certified Practising Valuers go beyond knowledge of the area and previous sales statistics. Instead, they focus on providing valuations that are in line with well-established processes and standards.
What’s more, they have no vested interest in the sale or purchase of your property, so their reports are independent and legally enforceable.
Tips For Choosing an Australian Property Institute Accredited Valuer
Now that you know what Certified Practising Valuers are, how do you choose one for your next valuation?
Consider the following factors:
- What are their certifications? The first place to start is by checking their credentials. Property valuers should be qualified from a highly regarded tertiary institute, registered with the Australian Property Institute, and qualified as a Certified Practising Valuer.
- What is their field of expertise? Property valuations are offered for various reasons. So you’ll need to know that the property valuer can conduct the relevant valuations and satisfy your requirements.
- Do they disclose what methods they use to conduct the valuation? Your property valuation report should contain a detailed breakdown of the methods and calculations that the Certified Practising Valuer used to get to the value of your property.
- Are they objective and independent? For an accurate and fair valuation, you’ll want to consider seeking the services of an independent valuer who has no connection to the seller, buyer, or their real estate agent because they will have no vested interest in the property being valued.
There are a lot of factors that go into buying the right property.
And, when you’re investing as much money as you likely are, it’s important to have an experienced and qualified expert help guide you through this process.
Certified Practising Valuers can provide valuable information about what properties are worth looking at based on location, price point, condition and more. They can also produce legally enforceable valuation reports as opposed to just a rough estimation.
At Duo Tax, our mission has always been to help property investors save money where they can. We provide a comprehensive suite of property valuation services across Australia designed to deliver reliable and affordable valuation reports for your property.
Get in touch with one of our friendly certified property valuers to discuss and organise your next property valuation today!