VALUERS remain committed upholding the integrity of the Australian valuation system and not manipulation of values, according to Australian Property Institute (API) spokesman and director of Charter Keck Cramer, Brad Papworth.
Papworth declared the skill of the valuer is to be knowledgeable about market transactions and the circumstances of the sale by independent investigation, then apply this knowledge to assess the market value of the property.
“We consider market value to be the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion,” he said.
“This definition has not changed in the industry and will not change so as to appease the wishes of a few,”
Recent discussions around valuations have focused on rebates offered by land developers to buyers of new homes, which have artificially forced up the median land price.
“Sales by developers do not necessarily equate to market value due to the influence of large marketing budgets, incentives, gifts and other marketing devices,” Papworth said.
“’Proper marketing’” does not incorporate marketing devices available to developers but rather marketing implemented by individuals to realise a property.
“Valuers will have due regard to the sale of the subject property itself, however will adjust the sale if necessary for marketing devices and compare the adjusted sale price to the market transactions before determining value.”
However, he said, valuers independently assess the market value of a residential property having regard to the evidence of market transactions, i.e. sales of properties between individuals rather than corporations.
Property Review
