Welcome to property valuation information blog series if you live in the city of Sydney and it’s January you will have recently received one of these in the mail an assessment notice from the Sydney Assessment Authority at this time of year property valuation services provider get a lot of questions about the difference between assessed value and market value and there is a difference.
So today government approved property valuers are gonna take a little bit of time to not only talk about the difference between assessed and market value but also to introduce to you the three other property valuation methods that are used to value of property.
So let’s get started with assessed value what that means assessed value is the value determined by the public tax authority for the purpose of Taxation it’s not the same as market value at all though there is often a correlation between market value.
And assessed value sometimes market value is higher sometimes lower sometimes the same it all depends on so many different variables and what’s going on in your particular neighborhood and price point at the time.
For more information’s about the relationship between your property’s assessed value and its market value you should call property valuers before we talk about market value property valuation services provider want to talk about a couple other types of value.
Appraised property valuation method
Let’s start with appraised value because it’s another one that causes some confusion when determining market value appraised value is an estimated fair market value as determined by a licensed appraiser by comparing similar properties as a designated point in time appraised value is most often used by lenders to determine how much they’re actually willing to finance for the property now.
One thing to keep in mind with appraised value is it is the opinion of the appraiser it’s not necessarily the same as market value which
property valuation services provider will come to in a moment before property valuers talk about market value Property valuers want to talk about two other kinds of valuing use.
And highest best use value now valuing use is just like it sounds it’s the value of the property as it’s being used highest best use value is the value of the property if it were being used to its highest best use.
For example if there’s a single-family house built on a property that zoned for commercial use Real estate valuers would consider that property is not being used to its highest best use for more information on that you call property valuers now to market value all right let’s talk about market value.
Now market value is determined in a similar way to appraised value as your Real estate valuers will compare recent sales of similar properties to determine a price that government approved property valuers think is fair market value for the property.
But ultimately at the end of the day market value is determined by what a given buyer is going to pay for a property at a certain point in time for more information about real estate related matters turn with terms of valuing your property or anything else call registered valuers always happy to help and remember all you have to do is imagine your future and Our government approved property valuers help you find it.