Instances where you might consider ordering a valuation include, but are not limited to:

• When you are looking to purchase a property and are not sure what is a reasonable offer to make, or what maximum bid you should make at an auction
• When you wish to sell your home and are not sure what to place it on the market at, or what reserve you should set for the auction
• When you wish to build a brand new home, or renovate your existing home and want to ensure you do not spend more than what the home will be worth on completion
• When you need to negotiate a property settlement or can not agree on a fair market value of the home
• When you are transferring the property into another name 
• When you are selling your property privately
• When you decide to move out of the residence you currently live in, in order to lease it out, or you are selling your investment property
• If you decide to transfer your property into a super fund 
• If you are applying for a Visa
• When you are the Executor of a Deceased Estate and require advice for pre-sale purposes or to negotiate buy-outs between beneficiaries
• When you have had a mortgage valuation completed and disagree with the valuation figure adopted by the banks Valuer, and you are seeking a second opinion
• When you have an investment property and would benefit from maximising your tax deductions
• When you are unsure of a replacement value to adopt on the insurance policy of your home
• When you have offered your property as security to release an individual on bail and the courts need a valuation to establish if there is enough equity in the property.
• When Centrelink are questioning your eligibility for payments such as the pension
• When you have been advised a statutory body or adjoining owner require all, or part of your property to grant an easement or carry out public works such as a road widening, and want to ensure you receive adequate compensation
• When you disagree with the land value adopted by the Valuer General as it is too high and you wish to lower your rating and taxing liabilities
• When you are unsure of what to increase your investment properties rent by, or you are a tenant wishing to negotiate an unfair rental increase

The phrases ‘to value’ and ‘to appraise’ may sound the same, and be used interchangeably, however in the property industry, there is a vast difference between the two, which is why people can get confused as to which one they need to suit their objectives.

To end that confusion, below is an outline the crucial differences between the two, so that you know which one will best suit your requirements.

Property Appraisals

The primary role of a real estate agent is marketing. This means providing a market appraisal service incorporating recommendations on asking price and marketing strategies best suited to the sale of your property.

In other words, an appraisal carried out by a real estate agent is not considered a formal valuation and is provided only to use as a guide to set an asking price for your property when it is placed on the market for sale.

An appraisal is derived from a breakdown of comparable sold properties in the subject locality and is highly influenced by market trends, even if they are short lasting. The agent analyses  the demand for similar properties, potential improvements to increase its value, alternative uses and other recent valuations and sold prices for comparable properties in the area.  An appraisal may also take into consideration how a buyer will react to a property and attempt to provide some foresight into the possibility of achieving a higher sale figure under current market conditions.

Real estate agents have no formal qualifications to  be able to provide a formal valuation. Appraisals are based on professional opinion only, they are not definitive and have no legal standing, therefore subsequently, agents do not charge a fee for this service.

Independent Property Valuations

A formal valuation can only be carried out by a qualified valuer, one who has completed the tertiary educational course and associated work experience required to be an eligible member of a recognised professional industry regulating body such as the Australian Property Institute (API) or the Royal Institute of Chartered Surveyors (RICS).

In NSW, as a member of the Australian Property Institute, you must complete a recognised three year full-time degree to become a provisional member (PMAPI), then to gain associate level membership (AAPI), you must  have two years full time (or equivalent) experience in the profession.  To gain qualifications as a Certified Practicing Valuer (CPV), you must have two years work experience (or equivalent) in the profession and pass a professional interview and skills based assessment.  Experienced valuers have a minimum AAPI, CPV qualification with the API.

Formal valuations are an independent, unbiased and definitive assessment of value, provided without any hidden agenda.  They are usually performed for banking, statutory or legal purposes, being relied upon by financial institutions and mortgage insurers when applying for a home loan, by the Australian Taxation Office and Office of State Revenue when determining statutory liabilities, by Accountants and financial professionals in auditing investment holdings performance, and by Solicitors and Courts in resolving disputes and property settlements.

The process of determining the value of your property is considered more rigorous for an independent valuer to determine.  Not only will they derive value from a breakdown of comparable sold properties in the subject locality and determine the highest and best use of the site based on town planning parameters, they also analyse, and report on, the value of the property taking into account additional risk parameters including planning constraints due to environmental factors such as flood risk, bushfire risk, landslip, mine subsidence and proximity to high tension electricity line risks, but also proximity to hazardous or non complementary surrounding development, planning and development risks such as non-approved or reconfigured structural improvements, non-compliance with the Building Code of Australia, identification of hazardous building materials, pest infestations and economic influences on a national, local and market segment level.

Valuers are impartial and objective in providing their assessment of value, being bound by Codes of Professional Practice, Codes of Ethics and Rules of Conduct.  Valuation firms are also required to have professional indemnity insurance, giving consumers confidence that their opinion of value can be relied upon, subject to any qualifications and disclaimers in the valuation report.  For this reason, given the extent of work required and legal requirements to meet the minimum standards of providing an independent property valuation, valuers charge a fee for their reports.

In summary, each type of assessment of value have their place in the market however it is important to understand the difference between the two products.  Even though agents can loosely use the language in everyday conversation, it could lead to some complicated implications if they were offering valuations without the necessary qualifications to do so.

We cover the Illawarra, Shoalhaven, Southern Highlands and Greater Sydney regions.  Properties outside of these areas can be considered on a case by case basis.  Please phone us on 1300 097 912 to discuss or email us at admin@powerhousepp.com.au

The cost of a valuation will vary based on a number of variables including, the type of property being valued, its location, its size and the type of valuation report required, as these can vary from two page short form reports to twenty page long form reports that are more detailed and required particularly for feasibility, acquisition, family law or litigation purposes.

We believe our fees are competitive within the industry and we offer an upfront quoting service to ensure full transparency.  The cost of this professional advice is relatively small in comparison to your investment and the potential savings and peace of mind it can provide you.

A valuation is considered valid for a period of up to three months. 

Updated reports are able to be provided for a lesser fee upon expiration, if required.

Yes, Powerhouse Property Professionals have comprehensive Professional Indemnity Insurance and Public Liability insurance.  Please note that our liability is limited by a scheme approved under Professional Standards Legislation.

Please have these documents available should they be applicable in your circumstance:

• A copy of building plans with external wall measurements
• Any building tenders or additional quotations for construction/renovation valuations
• If the property is being sold, a copy of the Contract of Sale, signed is preferable, including any annexures
• Any applicable leases
• Any outgoings for commercial properties

We are required to carry out full internal and external inspections on all properties we value, unless we are carrying out a restricted, or kerbside assessment.  Internal inspections are carried out as the internal condition of the property plays an important role in determining the market value of the property.  Internal photographs are also required when completing a valuation report.

We are happy to arrange access with the tenant via the managing agent of your property.  It is however, considered best practice for you to forewarn the Property Manager of our imminent phone call to ensure they do not hold up the inspection process seeking your clarification and permission, and in advising the tenant of the circumstances surrounding the valuation, for example, you are refinancing your home loan and not about to sell the home.  It should be noted that the agent is not allowed to pass on the tenants details to us without the tenants prior consent.  Please note, a tenant or agent must also be present for the valuation inspection as we will not collect keys for a property which is occupied.

Although not required, having your property reasonably tidy can improve presentation and assist with the internal inspection process, noting that the Valuer may be required to take photographs of the kitchen and bathroom for their report.  We would recommend completing any half-renovated rooms and fixing any obvious defects such as mould on ceilings and holes in plasterboard.  This will improve the presentation and saleability of the property.  Lastly, having any  ‘not so friendly’ pets taken out for a walk, or momentarily restrained can also ensure the inspection runs smoothly.

Valuation inspection times vary depending on the type and size of the property. Residential valuations generally require between 15 to 30 minutes, and commercial properties can take anywhere between 20 minutes to one hour, to complete a thorough internal and external inspection.

Reports for residential properties can generally take anywhere between 2 to 5 working days to complete and commercial properties generally take 5 to 10 working days for smaller properties and slightly longer for larger, more complex properties.

*Please note this is a guide only.  A more accurate estimate of turn-around time will be advised at the time of quotation.

When on-site the Valuer will:

• Introduce themselves at the door and give you a business card to identify themselves
• Walk into each room of the home and take notes in relation to the internal fixtures and fittings and any essential repairs apparent
• Take photographs of kitchens, bathrooms and any points of difference inherent to the inside of the home

Once outside, the Valuer will:

• Measure the home and any external structures
• Take notes in relation to the style and construction of the dwelling and any ancillary improvements
• Take photographs of the rear of the dwelling, any significant ancillary improvements plus any views; and
• Ask any questions they may have about the home before leaving

Property valuations are made as close to the actual market value as the Valuer can get, without any bias, within the constraints of the sales evidence available.  It is a common misconception that property valuations are low because of the varying advice given between that of Real Estate Agents and Property Valuers.  We suggest reading our frequently asked question on the difference between an agents appraisal and a property valuation above.

Some instances where you would benefit from the professional services of a Valuer include:

• Am I paying too much for this property?
• What amount should I bid up to for this property at the Auction on the weekend?
• Am I being paid enough compensation for the granting of this easement or road widening acquisition?
• Am I making enough return on my development to make it viable?
• Am I paying too much rent (or am I charging too little)?

A Valuer can provide you with advice that will assist you, or your financial advisor.  A valuation is not considered financial advice however is a very useful tool to assist in your decision making process.

A valuation report is generally only tax deductible if the property is held for investment purposes, and is generating rental income.  You should seek further clarification from your Accountant for your specific circumstances.

Yes, we are able to provide retrospective valuations ie. a valuation on your property at a date, potentially well in the past.  These reports are usually carried out for capital gains purposes.  The cost of these reports are slightly higher than a standard valuation due to the additional work involved in assessing sales from earlier markets, and taking into account any changes made to the property since that time.

Yes, the Valuer who completed your report is available to answer any of your questions by sending an email query to admin@powerhousepp.com.au or by phoning 1300 097 912