There are different types of property valuations to choose from, and knowing the purpose of the valuation is key to achieving the desired result. Where you get your property appraisal from is just as important as figuring out what type of appraisal you need.
By choosing an independent real estate appraisal company, you are guaranteed to receive high quality professional services that are tailored to your real estate needs, a comprehensive report detailing all findings and data analysis reviewed by a certified real estate appraiser with extensive knowledge and decades of experience in the specialized field of the real estate market.
As we mentioned there are different types of valuation services, in most situations you may require a valuation for current market purposes which includes recent comparable sales and market trends as well as the current condition of the property to determine fair market value as of the valuation date. However, it is not unusual for a client to request a valuation report for a past date.
This article will give you a look at retrospective property valuation otherwise known as retrospective valuation, why you need it and how it is used.
What is retrospective property valuation?
Retrospective property valuation, also known as retrospective or historical valuation, meaning that the exact valuation of the property can be discerned at a previous date in time. (eg March 4, 2007)
The most common requests to find a reverse valuation:
- Taxes on capital gains
- Family law and separation
- Property / real estate purposes – where current market value may not be relevant
- Purposes of litigation
- Applications for state subsidies
- Stamp duty
Retrospective valuation is a difficult task and having a certified independent appraiser who has extensive knowledge of the local market, is unbiased and unbiased in all the analysis provided in your corner will give you the result you deserve.
Purpose of retrospective valuations
In most cases, reverse valuation is most commonly used for Capital Gains Tax (CGT) purposes, particularly for an investment property owner who acquired the property after 20 September 1985. With reverse valuation, CGT liabilities depend not only on the value of the property. , but also the amount that the property has appreciated over time.
An independent appraiser will conduct sales research in the local area from a certain point in time to help determine historical market value.
How to calculate the return value of the property?
For a retrospective property valuation, you first need to specify the date for which you want the valuation report. This includes the month and year (eg January 2001) which is one of the most complex valuation processes to determine value due to the unique characteristics and any other changes that may have occurred.
Retrospective valuation requires extreme diligence, extensive hard work and research through databases to access historical market data for the property as well as local area sales from neighboring properties at the time.
A brief description of the property at a specific time is required, including details such as:
- Kitchen/bathroom (renovation completed)
- Number of rooms (property description)
- Year of purchase of the property
- Purchase contract (indicating all information and the price of the property)
- Any other equipment
How to chieve accurate retrospective report?
In order to achieve an accurate retrospective report, appraisers may also require the original valuation report, if one has been prepared.
Since different methodologies are used to determine the value of the property and all market data, if the original appraisal was not to your liking and contained errors or incorrect assumptions, the appraiser can go through the report again and make any other changes that were missed and make an updated retrospective valuation report to achieve the result that best suits your requirements.
Taking into account changes in market conditions over time that may have affected the sale price or historical valuation of the property is important so that the valuation report is accurate and meets all required requirements. Any personal details or photos of the property are essential to cross reference with other sources and databases to help finalize the exact details of the report.
Whatever the reason for your real estate purpose, having a certified independent valuer carry out a valuation is essential to ensure you receive a report that is of the highest standards, truthful, accurate and unbiased, reflecting and exceeding your property requirements.
We know how important a property valuation can be depending on your purpose, both in terms of tax obligations. for litigation or estate planning purposes, our appraisers have the highest standards of valuation services offered, with decades of experience and API certification. We guarantee you’ll get a tailored service you can trust.
How do we carry out real estate revaluation?
A real estate appraiser will need to perform historical data analysis and a physical inspection to determine the retrospective value of the property.
During data analysis, our Adelaide Property Valuers Property Values appraisers gain access to historical market value data to provide information on market conditions at the time the property was originally purchased.
Also read:- Adelaide Property Valuers : Complete Guide
Real estate values fluctuate regularly and these changes can significantly affect the current sale price and historical valuation of the property.
Once the data analysis is complete, we will typically arrange for a physical inspection of the property to determine:
Property Condition;
- Complex or hidden attributes that could not be found by data analysis;
- Potential structural and pest problems; and
- Surroundings and available amenities.
While a physical inspection is not always necessary, it gives our real estate appraiser a good picture of details that would otherwise be overlooked.
We will then prepare an accurate retrospective property valuation report that you can send directly to the Australian Taxation Office.
Why Choose Adelaide Property Valuers Property Valuation Services?
Our mission at Adelaide Property Valuers has always been to help real estate investors save money wherever possible.
Retrospective valuations significantly affect an individual’s tax liability, so it is imperative that the valuation process be performed by certified and experienced real estate appraisers.
We offer:
- Affordable prices
- Fast processing time – 5 working days from inspection
- Nationwide presence