What is a Market Assessment Valuation?
The market value of a property is the highest price that the buyer would be willing to pay, and the seller would be willing to accept.
A market assessment valuation is used to gauge the fair market price of your property and establish a reasonable selling price in an open and competitive property market.
The Australian Tax Office (ATO) requires property owners to establish the market value of their property for various tax purposes, including:
- where the sale isn’t conducted in an open market and is negotiated between related parties like family members; and
- where property developers need to calculate the GST when selling their property.
An accurate market assessment valuation report needs to be completed by an experienced Certified Practising Valuer in each of the above-mentioned circumstances.
While obtaining a market assessment appraisal from a real estate agent is possible, it’s usually a general estimation and is not legally enforceable.
Only Certified Practising Valuers, accredited by the Australian Property Institute, can offer accurate market assessment valuations.
According to the ATO, people who submit market valuation reports from valuers without adequate qualifications risk incorrectly reporting their tax and may be liable to pay administrative penalties.
How Do We Perform Market Assessment Valuations?
To provide accurate market assessment valuations, our Duo Tax Property Valuers need to consider the investment property attributes to establish the fair market value, such as:
- property type
- size and build of the property
- location; and
- surrounding amenities such as nearby schools, public transport and shopping
Our Property Valuers will generally consider the recent sales evidence of similar properties to gauge an indication of a similar market value.
We’ll then produce an accurate valuation report that you can submit directly to the Australian Tax Office.
Why Choose Duo Tax Property Valuers?
Our mission at Duo Tax has always been to help property investors save money where they can.
Property taxes can be a significant expense when buying property, so you’ll want to obtain fair market value calculations so that you’re not paying a cent more than you need to.