Perla IrishCheck out this article to know the different types of property valuation carried out in Australia.
Introduction
Property valuation means to evaluate the actual value of a property by using some practical methods.
Property valuation is beneficial to buyers as well as sellers. It analyses all the factors related to the value of the property and then concludes an accurate market value of that property.
Property valuation can be done for various reasons like to settle family disputes, to analyse your financial assets, to sell a property, or to buy or rent it.
For all these purposes, first, the property is valued, and then you can carry out the further.
There is not a single method to evaluate a property. Property agents use different methods to carry out property valuation based on your budget, purpose of assessing, and the type of property.
You can choose the type of evaluation that you are willing to get for your property, based on your requirements.
Property agents are professionals who evaluate your property using accurate methods and charge fees based on the details required, and the size, type, and value of the property.
Read this article to know a few of the most used methods of property valuation in Australia and find out which one would be suitable for your property.
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Desktop Valuation
As the name suggests, for desktop valuation one doesn’t have to visit the property necessarily, the assessment can be done from their desk itself.
In this type, the valuation is based on the limited information that is readily available.
This process requires the valuer to assess the value based on the publicly available information like tax records and ‘comparable’ studies available in the markets.
This method is significantly easy and mostly applied while evaluation of homes as their ‘comparable’ study is available.
However, for the houses that do not have comparables and are located in rural areas, this might not be the best method to assess their market value.
Kerbside Valuation
This type of valuation is done by inspecting the property from the outside. Internal inspection of the property is not done in this method.
Property valuers check the value and condition of the property by gathering external information related to the property like location, neighbourhood, and all other factors required for valuation.
The valuer only inspects the property from the kerbside, as the name implies, and gathers information from maps, aerial images, and other databases available in the market useful for the assessment of the property.
This valuation is basically useful to save the valuation cost paid by the client as it does not comes with the benefits of an internal inspection.
Full Valuation
This is, of course, the best type of valuation out of all. As it provides a detailed report of the property, from internal inspection to external inspection, everything is covered in it.
That is why it is called full valuation. The report of full valuation includes a complete analysis of every corner of the property, and all the factors are considered while assessing the property.
Since the valuer provides a detailed insight into the property’s value, it requires more time and money compared to the other types.
It is the most effective method, so all the time and money spent are definitely worth it. This method provides the most accurate value of the property.
In the full valuation method, along with desktop and kerbside valuation, internal inspection and observation of the property are also done. So, if you go for this method, technically you get the result of the other two methods as well.
For huge investments and dealing with enormous properties, this type of valuation is recommended to get proper knowledge about the property.
Moreover, it is also essential that you choose a qualified property valuer for any of the above methods to be effective.
Conclusion
The above mentioned are some of the well-known methods of property valuation used in Australia.
Now, that you are aware of these methods, you can choose an appropriate method for your property valuation as per your requirements.
You can even consult the property valuer to help you choose which one would be a better choice for your purposes.
Thank you for reading!
