What is a Formal Valuation ?

• Real estate professionals are often asked whether there is a difference between a valuation and appraisal. There is a difference and it is important to know when a formal valuation is required as opposed to obtaining an appraisal.
  
  A formal valuation can only be conducted by a qualified valuer who has undertaken prescribed education and training in this field to ensure that they take into account all features and issues relating to a particular property.
•  Robert Darcy, the principal of Darcy Real Estate is a registered Residential Real Estate Valuer Reg. # 6248. Valuing is a complex task and will take some time to complete. A formal valuation will take into account things such as:

• The location of the property
• The building structure and its condition
• Building/structural faults
• Features of the home
• Caveats or encumbrances on the property
• Local Council zoning
• Additional features of the property (particularly relevant in rural areas)

After a valuation, the client will receive a written report detailing the value of the property and a fee will be charged for this service.

Valuations are required when a definitive value is needed. Reasons are varied and for specified purposes .eg. stamp duty, insurance, family law, retrospective valuation, capital gains tax , a property settlement, obtaining finance from a lending institution or establishing the value of a deceased estate. A Court may also order that a valuation be obtained as part of the process of resolving a dispute.