First of all, it's important to recognise that property
valuers hold professional qualifications and are registered with State
authorities to conduct assessments that can be relied on by their clients.
They will also be affiliated with a professional body such
as the Australian Property Institute or the international body, the Royal
Institute of Chartered Surveyors.
All this is to say they are legally liable for the service
they provide and must prove their opinion stands up to the scrutiny of a
courtroom.
Valuers will therefore follow strict processes and
guidelines to ensure they’re on the money.
The key is the definition of market value space
which case law defines as:
The estimated amount for which an asset or liability
should exchange on the valuation date between a willing buyer and a willing
seller in an arm’s length transaction, after proper marketing and where the
parties had each acted knowledgeably, prudently, and without compulsion.
There are arguable points within this definition, but
basically, the valuer is assessing what your home should sell for in its "as
is” condition at a specific date and time if it had been openly and fairly
marketed.
Knowing this shows why valuers won’t predict future property
value movements based on musings about market direction or what renovations and
improvements you hope to carry out.
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Jason Gwerder
Wednesday, 19 March 2025
