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The valuer

PPG_BLog_nov_image 4_the valuer

The role of a valuer is to assess the value of property. Their services have a wide application, such as determining the valuation used by municipal authorities and state government to assess rate and taxation liabilities, and how much a property may be worth in the event of a compulsory acquisition.

When you take out a mortgage, the financial institution will use a valuer to help determine the extent of the loan they are prepared to make.

Often 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 those cases valuers provide a valuation.

Our courts also rely on them to provide their expert advice, as do parties involved in negotiating a retail lease.

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 price paid when a property is sold because a valuer is unable to determine how much a property is worth to a buyer or the amount they are willing to pay.

A valuation may also differ from the estimated selling price provided by an estate agent because a valuer can only take into account past sales, while the estate agent is providing a view about what a home may be worth in the near future.

Information courtesy of the REIV

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