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PPG_May_image 6_valuations_imageIndependent property valuations are used for many different purposes. For example, the services of a valuer may be required by municipal authorities and state government to assess rate and taxation liabilities or to determine how much a property may be worth in the event of a compulsory acquisition.

One of the main reasons a valuation is requested is for mortgage finance security. Money lenders – mainly banks – will request a valuation on a property before settlement is finalised.

Sometimes people need to settle a property without a sale on the public market, for the purposes of dividing assets in the event of a divorce or deceased estate. In these instances valuers are also needed to provide an estimation.

Valuers utilise a range of tools and systems to form their professional view.  They look at recent comparable sales, the size and location of the property and its particular features. The valuation they provide can differ from the estimated selling price or the actual price paid when a property is sold because they cannot foresee how much a property is worth to a buyer or the amount they are willing to pay.

The cost of a property valuation can vary depending on how in-depth the valuation is and what kind of property is being valued. Who pays for the valuation when it is the money lender requesting it can also differ in each individual case.

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