Valuation + Advisory Services
Lewis Valuations + Advisory have extensive experience in providing accurate, evidence based valuations.
We strive to keep ahead of our competitors by using market leading technology and research to deliver reports that are of a high standard.
Our valuers are all API certified, registered across Australian states, and have a minimum of 15 years’ valuation experience.
The valuers also live and work in their home town which means they have an in-depth knowledge of the property sub-market local to them.
Market Value Assessments
You may need a market value assessment for one of the reasons below:
– Pre-sale/pre-purchase
– Capital gains tax
– Stamp duty/transfer
– Family Law
– Estate Settlement
– Insurance
Every property is unique, and our approach to every property changes to accommodate this.
There are two types of inspection for your property: physical or digital.
Physical Inspections
Full property valuations are the most common type of valuation conducted in Australia, representing over half of all valuations performed. The Australian Property Institute, the leading industry body for valuers in Australia recommends a full valuation to ensure accuracy.
During a full valuation, a certified valuer physically visits the property and conducts a thorough inspection both inside and outside. The valuer is responsible for generating a comprehensive and legally binding property report. The report encompasses various aspects depending on the property type but generally includes an extensive evaluation of the property’s condition. It also incorporates photographs of each room, measurements, captures any recent renovations or alterations, and provides details on zoning restrictions. Furthermore, the report lists local area amenities such as the proximity of schools, shops, and other relevant facilities.
See our Property Valuation FAQ below for more information.
Desktop Assessments – Digital Online Inspection
A desktop valuation is typically only suitable for low-risk circumstances where the user of the desktop valuation understands the risks in the event the desktop valuation is incorrect. Without an on-site inspection, it becomes challenging to accurately assess the property’s condition, especially if recent renovations or alterations have taken place, potentially impacting its value. Additionally, if the property has not been on the market for an extended period obtaining up-to-date imagery may be difficult.
See our Desktop Assessment FAQ below for more information.
It’s important to consider these advantages and disadvantages when deciding whether a desktop valuation is suitable for your specific needs and circumstances.
Property Valuation FAQs
A property valuation is a detailed report developed to ascertain a property’s market value at the date of inspection. It details key features such as property size, condition, other comparable sales and more. A property valuation is a legally binding report prepared by a Certified Practicing Valuer who has completed a university-level degree and relevant training, in addition to being accredited by the u003ca href=u0022https://www.api.org.au/u0022u003eAustralian Property Instituteu003c/au003e.
A property valuation is used for numerous reasons, including determining the value of a property pre-purchase or pre-sale. It is also used when applying for a mortgage to purchase a property or refinancing a loan, to ensure the security value of the property adequately covers the loan amount. A valuation may also be used in family and partnership settlements, insurance claims, or for financial reporting.
At Lewis Valuations + Advisory, we understand that every property is unique. As such, we use a variety of approaches and methodologies to calculate the value of your individual property. u003cbru003eSuch as the:u003cbru003e- Summation approach – land value + improvements valueu003cbru003e- Income approach – passing incomeu003cbru003e- Market approach – comparable sales with similar improvements and conditionu003cbru003eu003cbru003eYour qualified valuer will also take into account any issues identified during inspection, and research, such as environmental issues.
A property valuation is undertaken by a Certified Practicing Valuer who has completed a university-level degree, in addition to being accredited by the Australian Property Institute and Registered in any state within Australia that they are practicing.
A property valuation is required when a property is being purchased, sold, refinanced, transferred, or for financial reporting on property assets. Valuation for the purchase and sale of a property is used to ensure that the security value of a property adequately covers the amount being loaned.
Market Value is defined by the International Valuation Standard Council as “the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion”.
Across many states of Australia and around the world, valuers are required to be registered both by government and industry body ensuring they are bound by industry standards to provide expert valuation advice. In Queensland and Western Australia, valuations of real property can only be legally undertaken by a valuer who is appropriately registered under the Valuers Registration Act 1992/ (VRA) and the Land Valuers Licensing Act 1978/ respectively.
A valuation provided by anyone who is not a registered and certified valuer is illegal, including real estate agents operating in states governed by statute.
A legally prepared valuation provides an unbiased and independent assessment of value that can be relied on for financial decisions, legal or statutory requirements. Valuation includes an assessment of a rental value. Whilst the difference between a valuation and a real estate agents’ appraisal is not well known to the general public, major institutions such as the Australian Tax Office (ATO), Australian Federal Circuit Court, Local Courts, Supreme Courts, Banks, Mortgage Insurers, Law Societies and CPA Australia have adopted the Australian Property Institute as the industry recognised body for property valuers’ minimum qualifications to provide expert advice.
To practice as a registered valuer the individual has attained tertiary education qualifications and work experience to be competent to practice as well as being of good fame and character. Where a valuation is undertaken for a financial decision, a legal or statutory requirement by any person, company, or enterprise not registered as a valuer this will be in contravention of Australian Legislation.
An appraisal, on the other hand, provides a broad estimate of the potential sale price or rent applicable to a property. It is standard practice for a real estate agent to provide an estimate of the sale price or rent applicable to a property to provide information to buyers, sellers, and tenants. This is not a property valuation and cannot be relied upon as a basis for a financial decision, legal or statutory requirement.
The cost of your valuation will vary depending on factors such as the property type, size, and purpose of the valuation. Some reports are more in depth than others and are quoted accordingly. A standard residential property market valuation report has a base fee of $660inc GST.
The time it takes to complete a physical property inspection will vary depending on the layout, size, and features of a property and the documentation that has been supplied. A residential property inspection is generally completed within 30 minutes, with commercial and agribusiness requiring longer timeframes. A valuation report is generally supplied within 5 working days of instruction and supply of all required documentation.
Once your inspection has been booked, at a mutually convenient time for the valuer and yourself you should start to prepare for the valuation to occur. Here are a few tips.u003cbru003eu003cbru003eu003cstrongu003eProvide accessu003c/strongu003eu003cbru003eA valuer will need access to the whole property. Where possible, ensure all doors are unlocked and access is available throughout the building. The valuer will take photos and measure the building, even if you provide a dimensional floor plan as a check measure, so access to all areas is required.u003cbru003eu003cbru003eu003cstrongu003eClean, declutter, and repairu003c/strongu003eu003cbru003eThe valuer will look past the dirty dishes in the sink and an unvacuumed floor. The valuer will however take note of all unfinished renovations and any areas that need maintenance. To ensure your property is valued at its best, it is best that you complete those small maintenance tasks and renovations prior to inspection.u003cbru003eu003cbru003eu003cstrongu003eSupply relevant documentationu003c/strongu003eu003cbru003eThe valuer and/or their support team will ask you for relevant documentation prior to the inspection of your property.u003cbru003e u003cbru003eIn order to help the valuer expedite the completion of your report, it is important that they have the necessary document at hand from the outset.u003cbru003eFrequently asked for documents include the below (only those relevant to your property type, would be required):u003cbru003e- Dimensional floor plansu003cbru003e- Survey plan or Registered plansu003cbru003e- Certificate of Titleu003cbru003e- Lease agreementsu003cbru003e- Executed contract of saleu003cbru003e- Body corporate feesu003cbru003e- Summary of outgoingsu003cbru003e- Council approvals for any additions or use on the property (If applicable)u003cbru003e- Summary of any capital works undertaken in past 3 years (If applicable)u003cbru003e- Executed building contractu003cbru003eSpecialised properties will require extra documentation that is relevant to them.u003cbru003eu003cbru003eu003cstrongu003eHighlight the property’s special featuresu003c/strongu003eu003cbru003eWhile the valuer is a property expert, there are certain features at a property that are not visible. Does the property have solar panels, how many, and how many kilowatts, CCTV, bore water, etc. Disclosing this information will help the valuer provide an accurate report.u003cbru003eu003cbru003eu003cstrongu003eContain petsu003c/strongu003eu003cbru003ePlease put your pets in a safe place for their own safety, and the safety of the valuer.
Desktop Assessment FAQs
A desktop valuation is typically only suitable for low-risk circumstances where the user of the desktop valuation understands the risks in the event the desktop valuation is incorrect. Without an on-site inspection, it becomes challenging to accurately assess the property’s condition, especially if recent renovations or alterations have taken place, potentially impacting its value. Additionally, if the property has not been on the market for an extended period obtaining up-to-date imagery may be difficult.
Desktop assessments are often utilised for the purpose of capital gains tax assessments, stamp duty transfer and other accounting purposes, as these reports meet all requirements of the Australian Tax Office. Our team will be able to confirm if a desktop assessment will meet your valuation needs.
Minimum Requirements to perform a Desktop Valuation:u003cbru003e- Instructing Party is aware of the risks of placing financial reliance when ordering a desktop valuationu003cbru003e- Property street addressu003cbru003e- Property land sizeu003cbru003e- Property building size or accommodation description (e.g., number of bedrooms and bathrooms)u003cbru003e- Builders plans or agent plans (if available)u003cbru003e- Photographs within 90 days of the property including front, back, kitchen bedrooms, living and bathrooms. Timestamped preferred.
A desktop valuation is an appraisal method where the valuer estimates the property’s value based on available data without physically visiting the property. u003cbru003eThis method relies heavily on online photographs, floor plans, and information from third-party websites. The accuracy of a desktop valuation is directly tied to the quality and completeness of the information provided.u003cbru003eu003cbru003eIn contrast, a full physical inspection involves the valuer personally visiting the property to assess its condition, features, and any unique attributes. This method is considered the industry standard for property valuations and is recognised by the Australian Property Institute. u003cemu003e(Section 11.2 and 11.3 of the Rules of Professional Conduct found at api.org.au)u003c/emu003eu003cbru003eu003cbru003eA physical inspection allows the valuer to thoroughly examine the property and its surroundings, providing a more accurate and comprehensive assessment. Additionally, it enables the valuer to inspect comparable sales evidence, drive by and research properties listed on the market or for rent in the immediate area, ensuring a higher degree of accuracy and reliability.u003cbru003eu003cbru003eWhile desktop valuations may be appealing to lenders who require quick assessments with a valuation accuracy within 30% or a 50% to 70% Loan-to-Value Ratio (LVR), they are not suitable for situations where precise and accurate property values are necessary. For such cases, a full physical inspection is the preferred and recommended approach for peace of mind.
The cost of a desktop assessment will vary depending on the property type, size, and valuation type however it is generally substantially less than the fee for a regular valuation where a valuer completes an on-site inspection. A standard residential desktop assessment is likely to cost from $400 + GST.
The time it takes to complete a desktop assessment report will vary depending on the layout, size, and features of a property and the documentation that has been supplied. A residential property desktop assessment is generally completed within 3-5 business days of instruction and supply of all required documentation.