Going about Property Valuations? Hire a Property Valuer!

Just like residential property, a large number of people are moving today to commercial properties in real estate market. FVG Property is the top real estate allied service providing firm in that offers property valuations services, and provides best buyers advocates Melbourne and vendor advocatesMelbourne. Mark Ruttner, the managing director of FVG Property and a renowned property valuer all over Melbourne shares his views in an interview. He speaks on what is the real crux of property valuations, what exactly a valuer looks for in a property, and how a residential, commercial, industrial, or retail property is actually valued by a property valuer.

No matter what kind of property you are looking for, a residential property or a commercial one, Mark strongly recommends hiring an expert property valuer to have a thorough look at the property and advise you regarding your final decision. According to Mark, it's very important to have a property valuer before you go in to the heart of the matter and take any big decision about any property in the market.

Mark gives a quick overview about what a valuer should or should not be doing at the time of valuations - "As far as a residential property is concerned, before physically inspecting the property, a good valuer in Melbourne should follow thorough property research which would include the actual sales over the last six months and the affected sales over the same period." These sales must have to be comparable in terms of land size, building size, and location. While actually inspecting a residential property, a valuer is must to take brief description of each of the areas in the property.

In a nutshell, a valuer will have a sales analysis before evaluating any property. "Location, general amenity, and convenience of being within the city area are the three big keys that drive the commercial property valuations", says Mark.

According to Mark, the major difference between a residential property and a commercial one is that in case of a commercial property, we look for an income stream. So the job from the valuer is obtaining comparable sales and comparable rentals. According to him, determining the commercial rental applicable to a particular property is the key factor during its valuation.

About bidding, Mark says that bidding for a property in a public auction is the best way to indicate its actual market value.

 So, there's not much of difference regarding evaluation of commercial and residential property, the only major task of a property valuer is to go out and determine the market rental value.

Real Estate Valuers to help you make informed decisions on property transactions

It doesn’t matter if you are looking at either the Residential or Commercial real estate market, or a $20m acquisition or a $500,000 apartment or you are buying or selling, or leasing or wanting develop, there is only one professional that affords you comfort within your decision making process. That being a Real Estate Valuer, more particularly a Certified Practicing Valuer, with FVG Property.

Simply, valuers are the only professional entity in Australia that has the highest tertiary qualifications within the property industry. Informed decisions in real estate should always be made with the assistance of a Real Estate Valuers. Specific to Melbourne, most qualifications of a Real Estate Valuer includes a 3-4 year tertiary education at Melbourne University or DeakinUniversity with a further 12-18 months of practical experience with a Certified Practicing Valuer to option firstly, a RPV or residential valuers qualifications and thereafter with a further period of experience a  CPV or Certified Practicing  Valuer: The course in general teams deals with the property in all forms, basis of Property valuations, cashflow / capital / discounted cashflowscurrent market value, insurance value, feasibility studies, most probable price, analysis of investment options, with a myriad of many more topics inclusive of the law, construction, town planning and building requirements, marketing etc. In essence, in using a Real Estate Valuer you are using the ‘expert’ in the real estate profession.

A Real Estate Valuer is the only legal profession used in court matters to determine the value of real estate property.

The Real Estate Valuer has no pecuniary aspects of their decision making and is totally independent of the transaction.

The Real Estate Valuer allows the customer to make informed decisions for the following reasons:

1.       Highly Qualified. The highest level of professional expertise in Australia in regard to the real estate industry.

2.       Real Estate Valuer’s recommendations are used by the courts of Australia (unlike licensed Real Estate Agents).

3.       Unbiased levels of value and reasoning the Real Estate Valuer has no peculiar interest.

4.       The decision process is made on actual sales / rental data.

5.       The Real Estate Valuer basis the decision process on industry standards and rationale and not just on an opinion with no substantiation.

6.       The decision process is completed on a number of basis of value.

7.       The Real Estate Valuer is cognizant and impartial allowing a due diligence process not reflective of commission or incentive basis.

8.       The Real Estate Valuer takes out the emotional side of the transaction.

9.       While purchasing, the recommendations are based on current conditions and not on what may and may not occur.

10.   The cost of the Real Estate Valuer in the overall scheme of the transaction is inconsequential. The cost allows the party acquiring to have comfort on sound real estate advice.

The other matter that one must remember is that there are basis of informed decision making.

When making a decision, be wary of the bank valuation that comprises of 3-4 page documents and is for the exclusive use of the bank only. This doesn’t allow you to make an informed decision. Select the valuer impartially, brief the valuer as to what decisions are to be made, then await a full report, discussion and basis of why the recommendations were made.