When you consider buying or selling a property, the first thing you think about is the price, but you forget an important fact, the value. Indeed, value and price are not the same because one thing is the price that it has, and another is the value that we give it and where emotional, synergy or investment factors influence. Therefore, it is advisable to have an official Appraisal for property in Melbourne that prepares an appraisal report.
Property Appraisal is a process through which the official value of some property is known. For this, a series of legal parameters are followed. Due to its nature applicable to assets, several assets or properties can be appraised. However, the most common appraisals are for real estate, business, personal property, and works of art, jewellery, vehicles and boats.
Additionally, another term that is also generated when knowing the value of an interest is the valuation and valuation report. These concepts may or may not merge in certain circumstances, so it is necessary to identify each one.
In principle, it should be noted that an official Property appraisal is an activity carried out by appraisal professionals, through which the value of a property, whether movable or immovable, is determined. This type of activity must comply with certain parameters and follow a certain methodology in its preparation.
However, this appraisal is carried out by accredited professionals through Professional Colleges or Associations. Its function is based on valuing and certifying a certain asset, analyzing the market and the characteristics of the asset being appraised.
The appraisal report is the official document by which a professional, appraiser carries out a study of the property to find out how much it is valued. For this, it is based on different factors, such as location, orientation, age, and building or energy efficiency, among others. Likewise, it studies witness or comparable properties, that is, those similar to the object of analysis or valuation.
Apart from setting an objective amount of the value of the property, it also gathers registry and cadastral information. In addition, it includes the plan of the property, the urban situation, if tenants reside or the charges that may be levied on the property. All these data are important because they can directly influence the appraisal value.
These are required information that must be included in the Property appraisal report:
When valuing a property we must take into account the characteristics of the property itself, but also factors related to its location and the state of the real estate market. We are going to specify all these issues.
On the one hand, we must take into account the characteristics of the property itself, what we could call “indoor factors”. For example, the habitable square meters, the number of rooms and bathrooms, if it has a swimming pool and/or parking, its age and its energy efficiency.
Also, we have the “outdoor factors” because the price of the property influences what city it is in, what neighbourhood, and even what street. Along with these, are there more factors-
To carry out an appraisal process, the competent professional must carry out five basic checks that are mandatory before signing and making the appraisal report official. These five basic checks are as follows:
After these checks, the appraiser comes to visit the property and performs an inspection of both the interior and exterior. Next, the professional is in charge of the search for real estate witnesses. With this study, the appraisal report can be prepared, which must be validated by an appraisal company to be used.
First, it is important to emphasize that the “Appraiser” is an accredited professional with a degree and experience in the matter. However, not only this knowledge and studies are enough for an appropriate appraisal to be made. Several valuation methods must also be taken into account, including:
Many factors influence when valuing of a property and there are several ways to obtain a valuation. From DELORENZO PROPERTY GROUP, we can help you obtain a professional real estate appraisal. We know the state of the market and our agents have extensive experience in appraisals.
Do you need to know the market value of the real estate? Our team of appraisers can carry out the appraisal and issue an objective appraisal report.
The Property appraisal company validates the information provided in the document. It deepens the analysis with values
From the time the property is visited until the appraisal report is delivered to the owner, it takes around 48 to 72 hours. However, the use of new technologies, such as drones, and blockchain networks with Smart Contracts will allow in the future to have it almost in real-time.
The price paid for an appraisal varies significantly depending on the type of property to be valued, its size and its location.
In Australia, a Property appraisal is effective for six months or up to a year from the issuance of the official document.