What You Need To Know About the Cost of a Valuation

Valuation fees vary significantly across the industry. Therefore the end-user or consumer needs to be appropriately informed as to what a typical valuation fee includes so that they can gauge whether the service will produce a report that satisfies their needs.

 Most people seeking a valuation service typically have an end purpose that they wish to achieve.  That is, a valuation may be required for taxation, transfer duty, sale, purchase, or a family law matter.  Most valuation firms have standard fees that they charge for different types of reports. The reports themselves can vary from short-form reports to long-form reports depending on the purpose.

At Independent Property Valuations, we specialise in property valuations that are tailored to the specific needs of the consumer. We are happy to talk with potential clients so that their requirements are fulfilled. Here are the main factors that can influence the fee charged for your property valuation. 

In our experience, many valuers do not obtain a current title search in their valuation assessments.  A title search costs under $20 and provides invaluable information including the disclosure of any easements or encumbrances on title that may affect the value of the property, it confirms ownership of the property and it also determines the extent of ownership (shares in a property or outright ownership).

Another important factor is whether the valuer provides a quote on the assumption that the property will be fully inspected internally and externally.  If the property will not be inspected then information from other sources such as internet advertising or prior sales information will be used to determine value. The fact that the property has not been inspected should be fully disclosed in the report.  This type of report is referred to as a ‘restricted or desktop appraisal’, rather than a ‘Market Valuation’.  It should be noted that the Valuer’s assessment under these circumstances will be a value range as opposed to a single valuation figure and this will be less accurate than a valuation that has been undertaken as a ‘full inspection’.

The Valuer’s experience in valuing in the suburb should also be taken into consideration.  Generally, valuers with less experience may not be aware of factors such as flood liability, aircraft noise, or contamination issues which will influence the valuation assessment.

Other factors influencing the fee quoted will include the estimated time to complete the inspection and market research.  A key factor is whether there is enough market (sales) evidence for the valuer to rely upon within close proximity to the property being valued.  If there is not, then the valuer will have to look further back in time or find a comparable suburb nearby to compare with. This will involve further adjustments to the sales to gauge comparability with the property being valued. 

Travel time can also influence the fee charged.  For example, most valuers include a travel cost if the property is located outside the Sydney metropolitan area, which would be more than 2 hours drive away.

 Knowing what to look for when comparing independent valuers is very important. However, no amount of knowledge can battle experience. At Independent Property Valuations we can help you find the most appropriate valuer and get the best possible service for your money. Here is what we can offer you. Contact us today!

 Would you like to learn about the top reasons why it’s important to have your property valued?