Current Market Value
For anyone with a vested interest in real estate, keeping track of its current market value is crucial. In an ever-changing real estate market, understanding market value greatly aids with effective decision-making.
In corporate finance, the current market value (CMV) is the approximate current resale value for a financial instrument.
The current market value of a property can be defined as the amount that it can be sold for between a willing buyer and a willing seller acting prudently and without compulsion in an open market.
The CMV of a property is affected by several different contributing factors including sales trends, interest rates, and the general state of the economy.
To find the market value of real estate in Victoria, a qualified valuer can help. Valuers are property specialists who understand the intricacies of what makes up property values.
What is a market valuation report?
A market valuation report is a document that outlines the existing market value of a subject property. Valuation reports essentially outline how much you can reasonably sell your property for in an open market.
The report will provide detailed insight into the value of the property; covering every relevant factor. A market valuation report from a registered expert is accepted as legal proof of the current market value.
An accurate market valuation report gives property owners, sellers and investors key insight into the strengths and weaknesses of the property.
How is market value determined in real estate valuations?
A real estate valuation is the process of determining the value of a property. It can be performed on residential, commercial, industrial and rural properties. CPVs use trusted methods and apply years of specialised expertise to determine the market value of the specified property.
Valuers will apply a combination of trusted methods to reach the final market value. A primary method is chosen, and secondary methods are used to refine the valuation report.
The three most commonly applied valuation methods that valuers use are:
- The direct comparison approach
- The income capitalisation approach
- The summation approach
Valuers determine the most suitable approach based on the type of property and purpose of the report.
Why should I order a current market value report?
There are plenty of reasons for individuals and organisations to determine current market value. Most commonly, market value is sought for mortgage security purposes.
In general, valuation reports can be for a range of different reasons, such as:
- Valuable pre-sale/pre-purchase guidance: Understanding market value gives buyers and sellers the insight needed to make an informed decision.
- Fair and reasonable pricing: Knowing CMV also allows sellers to set reasonable prices on properties and assets. This attracts potential buyers and increases the chances of a successful sale.
- Improved investment decisions: With a clear understanding of market value, investors can assess the potential return on investment, assess different properties, and make evidence-based decisions regarding their real estate portfolio.
- Choosing appropriate insurance coverage: Adequate insurance coverage is needed to protect property investments. Knowing what the CMV is can help guarantee that owners have the proper coverage needed to rebuild, repair or compensate for the property in case of loss or damage.
- Improved negotiation power: For buyers and sellers of property, knowledge of the market value leads to strong and confident negotiation power. Offers can easily be justified and the whole process can move at a much swifter rate.
The benefits of knowing market value are plenty and reports are hugely beneficial in any of the above scenarios.
Why choose us?
At Valuations VIC, we pride ourselves on being the leading valuation firm in the country. All our valuers have the necessary credentials and are committed to delivering an exceptional standard of service delivery.
With decades of experience across a range of property types, our CPVs have the specialised insight needed to prepare accurate and comprehensive valuation reports. As the leading valuation firm in Victoria, we are dedicated to fundamental principles of honesty, transparency and integrity.
We provide prompt, precise and unbiased valuation reports with no compromise in quality. For more information on finding current market value in Victoria, give us a call today.