Choosing a Property Valuer
Before hiring a property valuer, consider a few things to help them do their job. When it comes to property value, the valuer is responsible for assessing the inside and outside of a property, noting damages to the exterior, and identifying any fixtures and fittings that may affect its value. Other important factors include the plot size and location. Finally, the valuer will evaluate the property’s amenities. Some of these include the number of bathrooms and bedrooms and any features that can make it more attractive to potential buyers. Have a look at Sydney Property Valuers Metro to get more info on this.
An external property valuation is required by law for all properties. These valuations do not necessarily need to be performed at year-end, but more frequent valuations may be needed to comply with certain reporting requirements. The value of a property is determined according to its market value or fair value. The market value is the price a property would fetch in an arm’s-length transaction between parties who act in good faith and without any compulsion. Fair value, on the other hand, is the price that a buyer or seller would pay for the property in an orderly transaction.
A cost approach to valuation involves comparing the price of a property’s improvements to the price of comparable properties in the market. The cost approach is commonly abbreviated as RCNLD. The cost of comparable properties and the value of the improvements are calculated using this information. The value of the improvements is usually calculated using the RCNLD method, which stands for reproduction/replacement cost new less depreciation. This method uses the cost of construction equivalent to the property’s present condition, and a functional dis-utility factor is subtracted from the cost.
A red book is published by the RICS. The RICS Valuation Professional Group Board approves any changes made to these standards. The profession is a global organisation, but has recently become active in the United States. Therefore, it is imperative to check the credentials of prospective valuers. When choosing a property valuer, you should ensure that you choose someone who is registered with the South African Council for Property Valuers. This statutory body ensures that a professional values property fairly and consistently.
A degree in real estate or other related field is required. You may also choose to enroll in a postgraduate program to further your education. Once you have graduated, you may be eligible to apply for membership in the Australian Property Institute. You will then need to gain professional experience in the field. This usually takes two years to earn your certification. You can also consider working as a property valuer if you already have some experience in the industry.
A property valuer may have several tasks that will help you decide whether to buy or sell a property. Property valuers can also assist with council tax assessments, allowing you to decide if the property is worth more or less than you are paying in taxes. A certified property valuer can provide a sworn report on a property, which is legally recognized and can be used for a variety of purposes. It is also a legal document that adheres to legislation and is a must-have for any property valuer.