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Frequently Asked Questions

Is a Valuation the same as an agentís appraisal?

No, an appraisal is undertaken by a real estate agent, not a certified practicing Valuer who holds the appropriate membership with the "Australian Property Institute" The appointed valuer must hold the appropriate industry experience and qualifications to undertake such valuation. Real estate agents are sales people skilled in marketing and negotiation and canít be held accountable for their opinion.

What is involved in preparing a Valuation?

The appointed valuer must comply with the Australian property Institutes standards when conducting a valuation. This includes such things as; full internal and external inspection, conduct appropriate research regarding sales evidence within the prevailing market, and consult with the governing Local Authority to confirm legal and permissible use. Once the investigation is completed, the valuer will summarise his/her findings in a formal written report.

Does the valuer have to look inside the property?

Absolutely; every valuer MUST inspect the property internally and externally. It is fundamental to any valuation that the properties quality and functionality is confirmed, plus the number of rooms is confirmed to ensure any analysis is based upon a standard unit of comparison. Another critical reason for a full inspection is to confirm any noticeable building defects (NOTE: the valuer is not a structural surveyor or building certifier) Should you have any concerns and appropriately qualified person should be engaged.

How long does it take?

Generally an inspection takes between 20 and 30 minutes, depending on the size, design and shape of the property. The vast majority of a Valuers time is spent identifying sales eveidence from within he prevailing market. Once al this information is gathered, the final analysis should be completed in a quiet office environment, allowing a valuer to interpret ALL the information, which could take somewhere between 30 minutes and several, varying due to the complexity of each individual valuation.

What factors influence the Valuation?

Many factors can influence the decision of a valuer, these include but should not be limited to the following;

  • Economic conditions in both Australia and the global market
  • Location characteristics which include; adjoining properties, surrounding services, suburb name and views
  • Building characteristics which include; age, condition, size, functionality and quality
  • Land characteristics which include; zoning, topography, shape, size and encumbrances

All of the above characteristics can influence the Market Value of a property, hence; engaging a valuer who holds the appropriate qualification is critical.

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