During the conveyancing process in Brisbane, a vital requirement includes a professional property valuation report. This report is used to determine an accurate value of a property. The valuation report is prepared after a thorough analysis of the building construction, building layout and location. A special consideration is also given to the value of sales that have taken place in close proximity to the property of interest. For professional property valuators, this is not a difficult task. Investors must arrange these valuations to ensure that they do not end up paying more than the market value.
Benefit of getting valuation report
Many investors sometimes try to avoid getting valuation reports as they consider this an unnecessary expense. However, there are many cost benefits of getting this valuation before the purchase. For example, this property valuation report may highlight any risks associated with the property. This might save the investor thousands of dollars in future.
Valuation reports are an essential requirement under certain conditions. One, when the buyer and seller are from the same family. Two, when the buyer and seller are corporations and are associated with each other. Three, when there is no consideration in the transaction or when the consideration cannot be ascertained.
Vital parts of a professional valuation report
There are certain vital parts of a professional valuation report. The report should clearly provide a description of the property and include the street address. Short descriptions of any improvements on the property should also be stated. Lastly, it should list at least three recent comparable sales in the area. In case it is not possible to provide such details because the property is located in some remote area where sales are not very frequent, evidence of market value can be submitted. This will be accepted of value dated up to three months before the date when the parties signed the transfer of property.
When making a large investment on real estate, a misevaluation of the property may lead to dire financial consequences. Many detailed aspects of property valuation are often overlooked. These include heritage listings, flooding trends, zoning, building construction materials and even the health of the economy. There are some common mistakes when buying a property, such as lemon buys, over capitalizing and swindled buying.
Many investors end up paying in excess of market value of the property just because they have not appointed conveyancing professionals in Queensland to step them through the purchase process. A professionally done valuation report for the property ensures that right amount of money is spent on the property deal whilst engaging a conveyancing professional ensures that all aspects of the deal are completed correctly.