Why are valuations important?
It provides a new market value for your property – these property valuation are now far more relevant and useful as they more closely reflect current market values. There are new market relativities – this is important because market changes help determine individual property rates and charges. (The new valuation of a property is compared with the new valuations of all the other properties).
The Valuer-General Victoria introduced standard property data requirements for councils, under the initiative known as Valuation Best Practice.
Only qualified valuers – professionals holding recognised tertiary qualifications and with the required practical experience – can perform municipal valuations. They are required to operate under the highest standards of professionalism and ethics – for example, all valuers must declare impartiality before undertaking valuations and undertake to perform all valuations to the best of their ability and judgement.
Valuing a property
Data obtained for each property is determined under Valuation Best Practice guidelines and includes things such as:
- Land area.
- Building size.
- Building condition.
- Construction material.
- Available services.
- Land classification (usage) and zoning etc.
Data is compiled on each property over time, through inspection, building and planning permits and other public sources.
The valuer builds a profile of value levels for each different area/property type by analysis of recent sales and leasing. This information is then applied to individual properties, taking into account the different characteristics of each property.
In certain circumstances, valuations must be performed between general valuations. These are known as supplementary valuations. They are required when properties are:
- Physically changed – eg. when buildings are altered, erected or demolished.
- Amalgamated, subdivided, portions sold off, rezoned or are affected by road construction.
Supplementary valuations are made when required, usually on a regular basis, such as quarterly or monthly.