Retrospective property valuation is a term many people are not even aware of. What does it mean? This blog explains a few things about it.
Some people call it historical property valuation or backdated property valuation.
When a property owner asks for Property Valuation Adelaide as at a particular time in the past. The property valuer inspects the property at the current time, but the valuation is done as per some previous date or backdated.
When is retrospective valuation done and for what is it used?
- CGT or Capital Gain Tax for investment
- Disputes related to real estate settlement
- Separation and family law
- Stamp duty and immigration
Property valuers Adelaide perform valuation based on the current value of a property because they find the valuation critical due to CGT liabilities. It tells about the increase in value over time.
It is a challenging task to find the retrospective property value and it becomes further complex if the property is ancient.
The process of retrospective property valuation
The process of retrospective property valuation Adelaide is similar to other valuation methods. It is a multi-stage process.
In the first stage, the valuer takes three things into consideration- the property that is to be valued, the date that is to be valued, and the condition of that property. It means the information gathered by the valuer is from the retrospective date till the current date. And then he compares the changes that happened in the property during this period.
Once the inspection is over, the valuer reviews it and collects the data of similar properties that were sold around the date of retrospective valuation.
The third factor that influences the property value is the trend and market condition. The valuer should take into consideration the interest rate as well. What is the purpose of the retrospective valuation? It is mainly for capital gain tax for investment. The value provided by the valuer ensures that the tax calculation is done accurately.
Finding the right retrospective value is a difficult task. It requires the valuer is expert and experienced. For precise results, the valuer needs accurate data.
Following are the things that a valuer considers crucial:
- The purchase year of the subject property
- Information about the property from several sources
- Sale agreement and property price
- Changes happened in the property
In short, the retrospective property valuation or backend property valuation saves property tax. Therefore, you need a seasoned and practicing valuer.
At Blanco Property Group, we offer first class customer service, exceptional quality reporting, and a high level of attention to detail. We understand that property is more than just a valuation. We make an unwavering commitment to our clients by providing them with services that merge utmost professionalism with genuine care.