Frequently Asked Questions

What is a property valuation exactly?

A property valuation is a legal document prepared by a certified valuer that determines a property’s fair market value. This valuation can be for the current date or a specific date in the past and may be required for taxation, legal, financial, or private purposes.

Certified valuers consider more than 200 variables when calculating value, which makes the process complex and highly detailed. For this reason, only experienced and qualified professionals should be trusted to provide an accurate property valuation.

When would I need a property valuation?

A property valuation is required in many circumstances, including:

• Buying or selling a property
• Taxation, including Capital Gains Tax (CGT) or stamp duty
• Probate and deceased estate settlements
• Family Court proceedings and mediation
• Litigation and compensation claims
• Land tax objections
• Internal accounting and financial reporting

In all cases, an independent property valuation ensures accuracy, transparency, and compliance with legal or financial requirements.

What qualifies a valuer to conduct certified valuations?

In Australia, only a Certified Practising Valuer (CPV), accredited by the Australian Property Institute (API), can conduct certified valuations.

To qualify, a valuer must:

• Complete a tertiary qualification in property valuation
• Undertake a two-year supervised traineeship under a CPV
• Pass a professional interview and assessment

On average, it takes six years of training before a valuer becomes a CPV. All senior valuers at Canberra Property Valuers Metro are CPVs, ensuring every report we deliver is of the highest professional standard.

How is the value of a property calculated?

There are three primary methodologies used in property valuation:

1. Direct Comparison Approach – The most common method. A valuer compares the subject property with recent comparable sales, adjusting for differences.
2. Summation Approach – Used as a secondary check. It combines the land value with the depreciated value of improvements.
3. Capitalisation of Net Income Approach – Typically used for commercial properties. The valuer calculates net income and capitalises this figure using comparable sales evidence.

Our valuers use the most appropriate methodology, or a combination, to ensure the valuation reflects true market value.

What are the different types of property valuation reports?

We provide two main types of property valuation reports:

• Short Form Reports – Concise but detailed valuations, suitable for most purposes such as taxation, pre-sale, or pre-purchase. Not usually accepted in court.
• Long Form Reports – Expanded reports used for litigation, Family Court, or complex commercial valuations. These include detailed market analysis, statutory statements, and multiple comparable sales (usually 5–7).

Both formats are prepared by API-certified valuers and are transparent, comprehensive, and legally defensible.

What distinguishes a property valuation from a real estate appraisal?

A property valuation is an unbiased legal document prepared by a certified independent valuer, while a real estate appraisal is an opinion of value provided by a real estate agent.

Real estate appraisals are often influenced by the agent’s interest in securing business, which can lead to inflated estimates. In contrast, a certified property valuation is based solely on objective data, research, and professional expertise.

This makes a certified property valuation far more reliable for legal, financial, and professional purposes.