determining market value for property

[LBA_ENG]

Hi there,

im looking to purchase property from family, ive been told that it needs to be sold, or rather capital gains and stamp duty calculation need to be done at market value. The ATO website states that market value can be determined by eitherr a "qualified valuer", or by "..yourself using reasonably objective and supportable data". Would the valuation (CIV) value shown on council rates bill be sufficient for this?

thanks,

Leo

 

[sailor]

Hi Leo, where abouts is the property? Usually the value on the rates notice (in Qld anyway) is the value of unimproved land, and does not consider the value of any structure on the land.
I would do a search on www.realestate.com.au and see what similar properties are going for in the same suburb. There are other places to find similar values, and also what recent sales have produced. You might also ask several real estate agents to give you an estimate of what it might sell for...then average them, for a guestimate.

 

[buzzlightyear]

Hi there,

im looking to purchase property from family, ive been told that it needs to be sold, or rather capital gains and stamp duty calculation need to be done at market value. The ATO website states that market value can be determined by eitherr a "qualified valuer", or by "..yourself using reasonably objective and supportable data". Would the valuation (CIV) value shown on council rates bill be sufficient for this?

thanks,

Leo

Most councils tend to value every two years, so the CIV on the rates notice might be out of date.

 

[Simon]

My mum transferred a property from my grandma to herself a few years ago.

We asked a local REA for an appraisal letter and asked him to make it at the low end for stamp duty calculations and he did.

Land Title Office was happy with it.

Was actually the easiest process and took us about an hour to complete with 50min of that in a queue.

 

[LBA_ENG]

the property is in ballarat victoria. rates notice shows both site value and capital improved value. Ive looked at what similar property is being sold for (real estate sites) but there is not many similar newer homes in this area. Sailor, what other places are you refering to? Im planning on getting a few real-estate estimates, but i worry they will over-estimate as I want it to be low as possible.

thanks again,

Leo

 

[tubs]

Why dont you get a couple from RE agents, and one from a valuer. Make sure you tell them what its for, and so their valuation shouldnt include having to pay listing fees etc, so it should bring the price down.

Then select the lowest one.

 

[sailor]

the property is in ballarat victoria. rates notice shows both site value and capital improved value. Ive looked at what similar property is being sold for (real estate sites) but there is not many similar newer homes in this area. Sailor, what other places are you refering to? Im planning on getting a few real-estate estimates, but i worry they will over-estimate as I want it to be low as possible.

thanks again,

Leo

http://www.diysell.com.au/pfs.asp

http://www.smartvendor.com.au/index.php

http://www.australiarealty.com/

http://www.owner.com.au/default.cfm

https://www.ozprivatesale.com.au/user/showalltown.asp

http://realestateweb.com.au/

http://www.propertypost.com.au/index.php?parent=property&func=fullsearch

http://www.zeroagents.com.au/Search/Search.aspx?StateID=1&SaleType=1

 

[Xenia]

A RE agent can only give you a property appraisal (most likely selling price based on history). It is not accurate and usually quoted within a range.

A valuer can give you a valuation that can stand up in court if it does not sell at that price. They usually have a 3 year university degree, vs a 6 week micky mouse course that it takes to be a RE agent (trust me I've done one) That's why banks use valuers and not RE agents!

 

[wylie]

I would also spend a few dollars and have a valuer do a valuation. I believe the valuer will put whatever slant on it that you ask for, within reason. In other words, you may ask for a lowish valuation for stamp duty reasons, and because there is no bank breathing down the valuer's neck looking for a high valuation (eg. purchase price or more) you should get what you want (my understanding anyway).

One thing I would be wary of is flack down the track from other family members. You don't want to have problems later with someone accusing you of getting a good deal at their expense.

Wylie