What a valuation report actually tells you

Property Valuation

1. Market Value vs Asking Price
Market Value is the estimated price a property would reasonably achieve in an open and competitive market. Asking Price is the amount set by the owner. They may not always be the same.

2. The Three Valuation Approaches
Market Approach: Compares the property with similar properties recently sold or offered in the market.
Cost Approach: Considers land value and the cost of replacing or reproducing the improvements, adjusted for depreciation.
Income Approach: Estimates value based on the property's ability to generate income, commonly used for rental and commercial properties.

3. What Does a Valuer Inspect?
A valuer considers the location, land size, property condition, building characteristics, accessibility, permitted use, ownership documents, infrastructure and current market conditions.

4. When Do You Need a Formal Valuation Report?
A formal valuation may be required for property sales, mortgages and financing, investment decisions, insurance, financial reporting, estate matters, or legal purposes.

5. How Long Does It Take & What Should You Prepare?
The timeframe depends on the property's size, type, location and available information. Prepare ownership documents, property details, building plans where available, rental information and other relevant records.

A professional valuation gives you a clear, evidence-based understanding of what your property is worth.

— Abdull Mussa
Real Estate Professional | Registered Valuer | Property & Investment Advisor