For most of us our home is our most valuable asset. Knowing what it’s worth can open doors to wealth creation through the equity held in the home.
There are various ways of valuing property. Online estimates can create a general insight without reference to the peculiarities of the property, such as its state of repair. Estate agents are not qualified valuers but have experience in current market trends with reference to other recent sales. They provide market appraisals and do not charge a fee. Certified Practising Valuers are registered, qualified professionals that assess the value of properties. They do charge a fee and are required to provide extensive written valuation reports.
Formal property valuations from Certified Practising Valuers may be required in circumstances such as:
- When banks need to assess the value of a property being used as security for lending purposes or to obtain mortgage insurance.
- Stamp duty assessment on property transfers that are not subject to a contract for sale or transfers that are not considered as being “at arms-length” transactions.
- Family law proceedings where the asset pool of the parties is being considered by the Court.
- Personal financial agreements relating to property such as inter-family loans or private business loans.
- Building insurance valuations to ensure properties are adequately insured.
- When undertaking rent reviews to ensure they are fair and reasonable between landlord and tenant.
Property valuations fluctuate with the economy and should be reviewed regularly. Most formal valuations are valid for 12 to 18 months, depending on their purpose.
Cecilia Castle is an Accredited Specialist in Family Law, and principal of Castle Lawyers at Asquith. CastleLawyers.com.au
