When you order a property valuation, the detailed valuation report you receive is an important document. This report contains the key information about your property’s value along with the methodology and reasoning behind the valuer’s assessment.
Whether it’s for a residential or commercial property, there are some standard elements to expect in any valuation report:
Property Details
This section identifies the property with details like:
- Full address
- Lot and plan number
- Zoning
- Site area/land size
It also includes a description of structures on the land and their condition.
Valuation Approach
The valuer outlines the methodology used to assess your property, such as direct sales comparison, cost approach or income capitalization. Any unique factors impacting the valuation are highlighted.
Market Overview
Your report provides an overview of current market conditions, recent sales activity and price trends for similar properties in the local area. This context is key for understanding the valuation rationale.
Valuation Summary
This key section states the valuers assessed market value of the property. A breakdown is provided showing:
- Land value – The value of the land itself.
- Improvements value – Worth of the buildings and structures on the land.
- Total value – The combined market value.
Supporting Evidence
The valuer includes details of comparable sales or rental listings that support their valuation figures. Photos, maps and tables help explain the reasoning.
Assumptions
Any assumptions or limiting conditions factored into the valuation are clearly stated, such as no structural defects being present.
Valuer Details
The valuers credentials, certification, and contact information are provided.
Reviewing your detailed valuation report helps you understand how the valuer reached their conclusions. It also serves as an important legal document to share with lenders, the tax office, courts or other parties.
