Compensation Valuation
For property owners, plenty of scenarios call for independent valuation reports. In cases where owners have suffered a loss or damage, a compensation valuation report can be incredibly useful.
A compensation valuation is a report written to outline how much compensation is owed to a property owner who has suffered from unjust damage or loss to the value of the property. Nobody wants to be left in a financially vulnerable situation because of external factors.
How is compensation assessed with a property valuation?
The report will provide clarity on the amount of compensation owed to the property owner based on objective evidence and market conditions. First, valuers will determine what the value of the property was before the loss was suffered.
They will then look at the existing value (post-acquisition or incident), and the difference will be equal to the compensation they are owed. An independent valuation report from a trusted firm is the most reliable method of determining the exact compensation.
Valuers preparing compensation valuation reports are well-versed in the Planning and Environment Act 1987 and Land Acquisition & Compensation Act 1986.
What value is used to determine compensation?
To accurately determine compensation, CPVs use market value as the benchmark. A valuer will apply retrospective valuation techniques to determine the market value before the acquisition or loss of value.
Market value refers to the amount that a property can reasonably be sold for in an open market between a willing buyer and seller. The difference between the existing market value and the retrospective market value is equal to the fair compensation.
Compulsory acquisition valuations
A compulsory acquisition occurs when the Australian Government acquires (either partially or fully) a residential or commercial property to proceed with public development. This can happen when a subject property is located in an area needed for public infrastructure, roads, or building developments.
Compulsory acquisitions can happen to anyone in the country; provided government deems the area as necessary for a public purpose. If the Government forcibly acquires your property, you are entitled to fair compensation. The individual and the authority must come to an agreement regarding the compensation.
In cases where you are unhappy with the offer of compensation, you can challenge it with an independent compulsory acquisition valuation report from a qualified CPV. Both a landlord and a tenant are entitled to compensation in cases of compulsory acquisitions.
Without a compensation valuation report, you may be entirely unaware you are being unfairly compensated. To guarantee fair and just compulsory acquisition compensation, independent valuation reports are your best bet.
Why choose us?
If your property has been impacted by a government development—whether through an obstruction of view or a full or partial acquisition, Valuations VIC is here to help. Our Certified Practising Valuers (CPVs) are registered with the Australian Property Institute (API) and many also hold AVI and RICS qualifications. With over 20 years of industry experience and extensive valuation training, our team delivers comprehensive and precise reports that accurately assess the impact of government developments on your property.
We have a history of successfully assisting clients in need of compensation valuation reports and consistently providing an exceptional standard of service. Our independent CPVs are careful to meet every legislative and regulatory requirement to ensure that reports are legally accepted as definitive proof of market value.
For prompt, precise and comprehensive compensation valuation reports, we are here to help. We never compromise on quality and treat every client with the same standard of importance. It doesn’t matter what type of property you own; we have the experience and qualifications to assist.
To learn more about using a property valuation for compensation, give us a call today. As leaders of the industry, we would be happy to help.