If you’re planning to invest in Brisbane’s property, then you need to consider the right property valuation to avoid losses. There are plenty of expert property valuers in Brisbane, but selecting the right ones is crucial to help you get the near-accurate valuation of the property you wish to buy.
Understanding the difference between property appraisals and valuations is also important because although they may seem similar, they tend to differ in various ways. Property valuation is the formal process, while property appraisal is an informal process of assessing a property’s value.
Formal Property Valuation?
This is only done by a qualified professional valuer who does not have any conflict of interest in the property. The valuation report that they produce is only valid for a stipulated period of time, mainly three months. This is because factors determining valuation figures usually change over time.
Property valuation requires you to pay a fee, while property appraisal doesn’t require any fee. Therefore, property valuations should only be conducted by qualified professionals that have managed to complete the necessary training.
Formal property valuations incur a fee, and if you want to find local property valuers in Brisbane, you should conduct thorough research.
Property valuations have many benefits. However, they do not reflect what you will gain from your property in an auction. This is because they are based on formulas instead of being based on the market value. Therefore, this is something that you need to keep in mind.
After the valuation of property is done, you will receive a full report with the following information:
- Description of the site
- Planning details of the town
- The environmental impact
- Comments from the valuer
- Market review
- Comparison of recent sales of similar properties
- Basic utility summary
- Certificate of title
- The rationale and findings of the valuation
The registration requirements tend to vary between territories and states. For example, in Queensland, all valuers are supposed to be registered with the Valuers Registration Board of Queensland (VRBQ).
It is a statutory board responsible for the management of all real estate property valuers in the entire state of Queensland. It also administers the Valuers Registration Act of 1992 and the 2013 Valuers Registration Regulations.
When do You Require a Valuation?
Some instances also require you to have a formal property valuation for Brisbane to prove legality. These instances include dispute resolution, property settlement, equity drawdowns, asset management, and liquidation of assets.
When applying for a property loan, the financial entity that is providing the loan requires you to have a Brisbane property valuation in the process. The main reason for that is to ensure the loan can be covered by the value of the property.
It also gives the bank or lending institution enough confidence that they’ll be able to recover their money.
When it comes to property appraisals, they need to be conducted by real estate agents who are legally licensed. Property appraisals don’t incur any fees. They entail the assessment of the property by the agent. They then use the market knowledge to assist you in understanding the potential value of the property based on various factors.
These factors include:
- Property location
- Property presentation
- Special features
- Any planning restrictions in place
- Vehicles and pedestrians’ accessibility
- Property structure and condition
There are plenty of property valuers in Brisbane. However, choosing the right ones requires you to conduct thorough research to help you get the correct valuation of the property you wish to purchase. You will be assured of getting great value for your bucks when you engage professional valuers.