Property valuations involve a structured assessment of a property’s worth, ensuring accurate and legally compliant value determination.
Step 1: Property Inspection
A property valuer conducts a physical inspection, examining:
- Size & Layout – The dimensions of land and built structures
- Condition – Structural integrity, renovations, and damages
- Features – Pools, garages, landscaping, and unique amenities
Step 2: Market Research & Sales Comparisons
The valuer researches:
- Recent sales data of similar properties in the area
- Market trends in VIC, including property demand and growth
- Economic conditions affecting real estate values
Step 3: Valuation Methodology
Property valuers use different methods to assess value, including:
- Direct Comparison Method – Compares recent property sales
- Income Capitalisation Approach – For rental and investment properties
- Cost Approach – Used for unique or specialised properties
Step 4: Generating the Valuation Report
The final valuation report includes:
- Property details & condition analysis
- Market research and comparable property sales
- Final property value assessment
Conclusion
Understanding how property valuations are conducted helps property owners prepare effectively and gain accurate insights into their real estate assets.
