In most situations, a property valuation report is conducted at current market value with the most recent comparable sales and market trends being analysed to determine the fair market value as at the date of valuation. However, it is not uncommon for a client to require a property valuation report for a date since passed. This is known as a retrospective property valuation report.
A Retrospective valuation can also be referred to as a back-dated or historical valuation and refers to the method of determining an asset’s value at a certain point in time.
Properties cannot (unfortunately!) be valued in the future as no one has a crystal ball to know what the market will do, however, we most certainly can value at a point in the past. Valuers form a view of how the property existed in that time, and compare it to other similar sales of properties from around the area at the same time. This is called the Direct Comparison Approach and is a common valuation methodology.
Common uses for a retrospective valuation report are:
- Taxation such as setting the cost base for Capital Gains Tax
- Deceased Estates
- Property Settlement and Family Law Court