Residential Property Valuation:

Valuers are requested to undertake an assessment of the market value of a residential property for various purposes including:

  • Sale & Purchase Advice
  • Mortgage Requirements
  • Relationship Property or Trust Settlements
  • Rating Valuation Objections
  • Compensation for Public Works
  • Taxation
    • Initially the Valuer will communicate with the client to ascertain the scope of the work to be completed, arrange for a property inspection and estimate the likely fees for the job.
      Prior to the property inspection, the Valuer will research the nature of the subject property with regards to its locality, zoning restrictions and conduct relevant market research.
      The property inspection includes measurement and inspection (internal and external) of the dwelling and other improvements.
      Following the inspection, the Valuer will analyse comparable sales and other evidence in order to ascertain the market value of the property and compile a comprehensive report.

      Progress Certificate:

      Valuers are often requested to carry out a progress certificate subsequent to undertaking an initial valuation based on the construction of a proposed new dwelling or other building.
      The Valuer will inspect the property during the construction process in order to estimate the percentage of works complete to ensure that the bank can safely issue progress payments as construction advances.
      A final progress certificate will be provided once the proposed construction is complete and the Valuer confirms that the development has been completed, as per the initial plan and specifications indicated for the original valuation.

      Transfer of Assets

      Often a valuation is required by a lawyer if you wish to transfer a property into a trust.

      Rating Objection

      Rating Valuations – (Government valuations) are required by statute, under the Rating Valuations Act 1998, for levying local and regional council rates.
      If you do not believe your current rating valuation reflects the market worth of your property as at the date of the last general revaluations, you have the right to object. Please note, objections are subject to time constraints – check the date for the last day for objecting, which is found on your owner’s notice.

      Relationship Property Valuation

      Relationship Valuation (or matrimonial valuation) is used in order to help a court achieve a division of assets in divorce or separation proceedings.

      Unit Entitlements

      Ownership Interest (Unit Entitlement) of a Unit Title Property. An ownership interest refers to the interest of a Unit Title property owner. A Unit Title property has various forms including; apartment blocks, townhouses, office blocks and industrial or retail complexes.
      The term Unit Entitlement was previously used under the Unit Titles Act 1972. It has since been replaced by the term “ownership interest” in the new Unit Titles Act 2010.
      Prior to a development unit plan being deposited, under the Act, a Registered Valuer must assess the market value of each unit title in order to determine the ownership interest of each unit.

      Insurance Valuations

      An Insurance Assessment is generally carried out on behalf of an insurance provider in order to establish the current market cost (not market value) to replace any improvements at the date of valuation.

      Mortgage Valuations

      A Mortgage Valuation is generally carried out for a lending institution such as a bank in order to establish the suitability of the property for loan security purposes.

      Rural/Lifestyle Valuations

      Valuers are requested to undertake an assessment of the market value of a rural/lifestyle property for various purposes including:

      • Sale & Purchase Advice
      • Mortgage Requirements
      • Relationship Property or Trust Settlements
      • Rating Valuation Objections
      • Compensation for Public Works
      • Taxation
      • Boundary adjustment
        • Initially the Valuer will communicate with the client to ascertain the scope of the work to be completed, arrange for a property inspection and estimate the likely fees for the job.
          Prior to the property inspection, the Valuer will research the nature of the subject property with regards to its locality, zoning restrictions and conduct relevant market research.
          The property inspection includes measurement and inspection (internal and external) of the dwelling and other improvements.
          Following the inspection, the Valuer will analyse comparable sales and other evidence in order to ascertain the market value of the property and compile a comprehensive report.

          GST Apportionment

          A GST Apportionment is undertaken to assess the portion of value of a property that is exempt from GST. These types of valuations are often required when a property is used for both an economic and residential purpose. The curtilage is generally separated from the remainder of the land as it is used for domestic purposes and therefore is GST exempt.

          Rural grazing rentals

          Rural grazing rentals are assessed base on the terms of the lease.

          Commercial/Industrial Valuation
          There are different types of commercial and industrial properties, each having their own valuation complexities. However there are generally two basic types of ownership.
          a) Owner Occupied Properties
          b) Investment Properties
          Owner Occupied Properties
          This type of property is where an owner of the land and buildings occupies the property with their own business.
          Investment Properties
          This type of property has a landlord and tenant where the landlord owns the land and buildings which the tenant leases to run their business.
          There are three main methods of valuing industrial and commercial property:
          a) Investment Approach
          This is where the buyer looks to receive a capital return on outlay in the form of rental income together with capital value increases resulting from regular rent reviews. It is generally accepted in the marketplace that the most appropriate and widely used market based method of valuation for commercial/industrial properties is the investment approach.
          Within this method there are two models – Income Capitalisation (where income is capitalised at a yield rate into perpetuity taking into account shortfall or surplus rentals) or a Discounted Cashflow Analysis (forecasts future cashflows over a period – generally 10 years and estimates the value at the end of the period and then discounts it back to the present day).
          b) Direct Comparison
          Comparison of the subject to sales of similar properties. This is considered the most appropriate method but generally comparisons are not always available.
          c) Depreciated Replacement Cost
          This approach involves the estimation of the land and building components of the property as separate valuation figures and the summation to provide an indication of market value. It is based on the principal of substitution relying on the theory that a prudent purchaser is influenced in arriving at a suitable price by the cost to construct a comparable property less depreciation and obsolescence.
          The Investment and direct comparison approach is based on market information whereas the less used method is the Depreciated Replacement Cost which is based on a current cost to replace their depreciated for age, obsolescence and condition. This type of assessment is used more for specialist type properties where there is no market evidence. It also does give a comparison with actual costs in relation to market sales.

          Compensations
          Compensation valuations seek to provide a value for the lost property in the event that part of your property may be taken for infrastructure. These are often determined under Section 26 of the Public Works Act. Usually the taking authority will recompense reasonable cost for professional services.

          Rental Assessments
          A Rental Assessment provides an indication of a market rental having regard to the current rentals being achieved by similar properties.