A property valuation is a detailed assessment of a property’s market value, conducted by a qualified property valuer. Unlike real estate agent appraisals, professional property valuations provide an unbiased and legally recognised report that can be used for financial, legal, and taxation purposes.
Why Property Valuations Matter
Buying or Selling a Property
- Sellers can set a fair and competitive price
- Buyers can avoid overpaying for a property
Investment Decisions
- Helps investors assess rental returns and capital growth
- Essential for portfolio valuation and financial planning
Mortgage and Refinancing Approvals
- Banks and lenders use valuations to determine loan amounts
- Ensures borrowers do not exceed loan-to-value ratios (LVRs)
Tax and Legal Purposes
- Required for capital gains tax (CGT) assessments
- Used in deceased estate settlements and divorce proceedings
How a Property Valuation is Conducted
- Property Inspection – Evaluating the size, condition, and features of the property
- Market Analysis – Comparing similar properties and recent sales in the area
- Economic Factors – Assessing market trends and local demand
- Valuation Report – A comprehensive document outlining the estimated market value
Conclusion
A professional property valuation ensures financial clarity and informed decision-making. Whether you’re buying, selling, or investing, an independent valuation is a crucial step in the real estate process.