We often get asked why our clients would need an independent valuation and the reasons may vary! Usually, the need for a valuation comes up as part of another process. Let us explore some of the reasons as to why you would need a valuation report:
Buying and Selling (Pre-Purchase and Pre-Sale)
These are undertaken as part of doing your due diligence before purchasing a property. Many of our clients want to ensure that when they go to an auction or putting in an offer on a property that they are paying a fair market value. Likewise, when a vendor or seller wants to list a property on the market, they want to know that the price they are putting up is a reasonable one.
Stamp Duty
Another reason could be when a parent gifts their child a property. Amongst other things, they need to ensure their other paperwork is in order and a valuation report may be required to determine how much Stamp Duty should be paid.
Taxation
Being the hot topic in Australia, property is seen as one of the primary forms of investment. Capital Gains Tax is to be paid on any income producing property. The time for when a valuation is required for a property is when it either becomes an investment property and ceases to be your primary place of residence or when your investment property becomes your primary place of residence.
Additionally, if you have a property held in a Self-Managed Super Fund (SMSF), a valuation would be required for compliance with the requirements set out by the Australian Taxation Office.
Family Law/Mediation
A breakdown in a marriage often means that assets would need to be sold and split or a party buying out the other. A valuation is a key part of the process for when a fair and reasonable value for the property is to be determined.
Internal Accounting
If our client is a business, they may need to obtain a valuation to determine the value of their property for their own internal accounting purpose.
Other individual clients may seek a valuation to determine how much their property is worth to figure out their financial plans.
Insurance
Clients who are applying for insurance for their property may need to obtain a valuation to determine the replacement cost of their building and/or plant and equipment.
Deceased Estate/Probate Purposes
An independent valuation for probate or deceased estate ensures that a fair market value of the property can be established for the beneficiaries.
Compulsory Acquisitions
As per our previous blog post on ‘Compulsory Acquisitions – Selecting the Right Representative’, during times of infrastructural works to be done by the Government, many people may have their homes compulsory acquired to make way for road, rail and other works for our growing city. An independent valuation is a useful tool to help negotiate a fair value for you.
To learn more about our services, feel free to call us on 1300 359 886 or use our contact form.