What is involved in the valuation process?
The valuation process is a detailed systematic procedure a CPV follows to determine the market value or rental value of a property. Steps involved in valuation process are as follows:
- Written Instructions need to include the name of the instructing party, the property address and the purpose of valuation. Additional information such as contact details for the person who will provide access to the property, any building plans and leases, current rental income and tenants details if applicable and an agreement to our terms of trade.
- The preliminary process involves researching relevant property information including zoning and services information, title information and comparable sales and or rental evidence.
- Our Property Inspection involves a detailed internal and external examination of the built improvements, and the physical characteristics of the land as well as an assessment of the neighbourhood’s characteristics and analysis of similar properties in the locality, which may have sold or have been leased around the valuation date.
- We then Analyse the market conditions relevant to the valuation date, including the level of real estate activity, local and global economic, and financial conditions, consumer and business confidence and government and social factors which may influence values and the levels of supply and demand.
- The Market Value may be assessed on several different valuation principles and methodologies taking the market conditions and the type of property into account.
- We then compile the research, our analysis and assessment into a detailed Report explaining and justifying Market Value adopted.
- Valuations are carried out by a CPV who is a member of the Australian Property Institute.