Residential Property Report Template – Disposal Valuation under the Public Works Act 1981

Why a Template?

These Templates have been developed to

Assist valuers to understand the valuation process for property disposed of under the Public Works Act,

Ensure Valuers provide information in their valuation reports to enable good decision making

Enable easier comparisons between valuation reports

Ensure that the valuation reports comply with current Australia and New Zealand Valuations and Property Standards and International Valuation Standards.

The templates emphasise the obligation for valuations to be evidence based and require the Valuer to provide supporting comparable sales evidence.

How to use this template

The report templates provide the recommended report format to be used for PWA acquisition work.

The structure is based on the ANZVGN 1, ANZVGN 5 and the IVS reporting standards. http://www.propertystandards.org.nz/course/view.php?id=2

Valuers should use the headings in the same order as the template and provide supporting commentary at least to the level of detail described in the template.

The valuation report is to be sent to the client as a secure PDF format (print to PDF). Do not print and scan the valuation report.

Valuers may tailor the template and add paragraphs and descriptions as appropriate depending on the subject property.

Valuers who wish to make any other changes should advise of the proposed changes in the Scope of Works.

Some valuation practices may have in-house templates or systems to assist in the report writing process. The template can be used in this manner.

All guarantees, disclosures compliance statements and disclaimers etc. are to be attached to the report.

Key to Text

Shaded text will need to be altered/ or deleted to reflect the subject property.

The content and the wording of this report is an Example of a valuation complying with IVS.

The non-shaded text should be retained where possible as it is written to ensure compliance with the current valuation standards.

Note to Valuer – offer guidance as to the Transport Agency expected content and description under that particular heading.

Disclaimer

Please note that the examples used in this template (property description and comparable sales) are fictional. Whilst we have tried to be as realistic as possible, any resemblance to an existing property is purely coincidental.

VALUATION FOR DISPOSAL PURPOSES

PROPERTY ADDRESS

DATE OF VALUATION

PHOTO

VALUATION SUMMARY

File No.

Date

Client

Property Address

Instructed By

We refer to the written instruction from company and agreed Scope of Work of date.

We confirm that our report complies with the instructions received and scope of works, subject to the valuation assumptions detailed in this report.

Purpose of Valuation

State here the type of valuation requested e.g. a market valuation of the property.

Date of Inspection

Date of Valuation

Land Area (To Be Disposed)

Rating Valuation (If Available)

Roll Number

Land value	$

Value of Improvements	$

Capital Value	$

Brief Property Description

Example - The subject property comprises a single storey, three bedroom, weatherboard clad dwelling, being some 50 years old and in average condition. It is constructed on a near level site that fronts Main Road, Belfast, which forms part of the newly re-aligned State Highway 2. Associated with the dwelling is a new single garage. Surrounding properties are of similar age and quality.

Valuation Assumptions

This assessment is made on the basis of and subject to certain assumptions which are noted as follows;

Examples -

Our assessment addresses the Market Value of the property subject to the existing tenancy arrangements.

As per the Survey Plan and attached report.

Valuation Approach

Direct Comparison

Extent of Inspection

Nature and Source of Information Relied Upon

Valuation Summary

The following valuation is the Market Value including chattels as at the effective date of valuation:

Market Value (GST inclusive, if any)	$	,000

Valuer

Company

Contact Details

DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENT

Valuers to insert clauses that comply with IVS 103 reporting e.g.

Restrictions on Use, Distribution or Publication.

Market Movement.

Valuers Interest.

Market Value Definitions.

Confirmation that the valuation has been undertaken in accordance with the IVS and Australia and New Zealand Valuation and Property Standards, in particular Australia and New Zealand Practice Standard 1 Valuations for Compulsory Acquisitions.

Identification and status of the Valuer.

CONTENTS

Residential Property Report Template – Disposal Valuation under the Public Works Act 1981	1

Why a Template?	1

VALUATION FOR DISPOSAL PURPOSES	2

VALUATION SUMMARY	3

DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENT	5

CONTENTS	6

VALUATION REPORT	7

1.0	Site Description	7

2.0	Land Tenure	8

3.0	Resource Management	9

4.0	Resurce consent	9

5.0	Improvements Description	10

6.0	General Market Discussion	11

7.0	Sales Evidence	12

8.0	Valuation Approach and Reasoning	15

9.0	Valuation	16

10.0	Concluding Remarks	17

APPENDIX I - HYPOTHETICAL SUBDIVISION Example	18

VALUATION REPORT

1.0 Site Description
1.1 Location
City
Situation
Locality
Amenities
Surrounding development
Saleability of the area

(Insert map to show surrounding location and highlighting the position of the subject property)

1.2 The Land
Land use
Land area and shape
Contour and site development
Aspect and view
Services
Access

(Insert aerial photo of the subject property)

1.3 Environmental Factors
Example - There does not appear to be any evidence of flooding, land subsidence or landslip and to the best of our knowledge any additional proposed road works or high tension power lines which may affect the saleability of the property. Council records have been searched to check the site history in relation to; Contamination Earthquake prone ratings Weather tight issues Asbestos Other details on Council files which may impact value.

2.0 Land Tenure
2.1 Certificate of Title (1)
Delete the number when there is only one title
Computer Freehold Register Identifier
Tenure
Legal Description/ Appellation
Registered Proprietor
Land Area
Interests Registered on Title
The above registrations are noted and are not considered to materially affect the value of the property.

Where the registrations on the title affect the market value of the subject property, the Valuer is to provide additional details. Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.

2.2 Certificate of Title (2)
Where the affected property is held in more than one title, list the titles separately..
Computer Freehold Register Identifier
Tenure
Legal Description/ Appellation
Registered Proprietor
Land Area
Interests Registered on Title
The above registrations are noted and are not considered to materially affect the value of the property.

Where the registrations on the title affect the market value of the subject property, the Valuer is to provide additional details. Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.

We enclose a copy [copies] of the Computer Freehold Register (refer Appendices).

3.0 Resource Management
Zoning
Permitted Use(s)
Designations
Heritage (if applicable)
Comment on the range of permitted activities, the application of the District Plan to the subject property and any possible effect on value. A long narrative of all the permitted activities in the zone is not required, unless the subject property’s highest and best use is not the current use.

4.0 Resurce consent
If the property is subject to a Resource Consent, please provide a full description of the details of what the resource consent pertains to and the effect on the value of the subject property of the Resource Consent.

5.0 Improvements Description
To follow is a brief description of the improvements and their condition, at the date of inspection
5.1 Dwelling
Type
Floor Area
Year Built (approx.) plus additions
Levels

Insert photographs of the dwelling, front and rear views

5.1.1 Construction
Foundations
Floor
External cladding
Roof
Joinery
Internal linings

5.1.2 Internal Layout (including fixtures and fittings)
Kitchen
Dining
Lounge
Bedrooms
Bathroom(s)
Laundry
Hallway
Heating
Chattels

Insert photographs of the kitchen and at least three other rooms to provide a good indication of the quality of the accommodation provided

5.2 Other Buildings
Garage / Carport
Other

Insert photographs of the Other Buildings

5.3 Other Improvements
Decks and / or Terraces
Site Development
Other

Insert photographs of the Other Improvements

5.4 Condition and Repair
Where deferred maintenance exists and remedial work is required to preserve the value of the asset, please note this and provide an estimate (a range is acceptable) of remedial costs in the separate addendum as requested in the scope of works. Insert photographs of the deferred maintenance, if applicable.

6.0 General Market Discussion
Please comment on general market trends (local and regional markets) possible evidence of changes in market trends, observations on reported listing periods and movements thereof. The general market situation is to be related to the market of the subject property.

7.0 Sales Evidence
7.1 Comparable Sales of Improved Properties
Please rank the sales in order of sale price, lowest to highest.
67 Williams Road
Sale date	Nov 2012	This dwelling was built circa 1961 and exterior construction comprises timber weatherboard cladding and corrugated iron roofing. The dwelling incorporates three bedrooms and there is a single freestanding garage. Site development is of a basic standard and includes mixed perimeter fencing and a concrete driveway. .	Photo
Sale price	$175,000
Floor area (m²)	110
Dwg Tce/deck Garaging (Int) Buildings Site dvplmnt Estimated LV	$ .63,000 $ 2,000 $ 0 $ 5,000 $ 5,000 $100,000
Land area (m²)	870 m²
Comparability	Due to the site being smaller and the dwelling being of inferior presentation to the subject property, we considered this property to overall be inferior to subject
22 Sharapova Crescent
Sale date	Jan 2013	This dwelling was built in 1963 of brick veneer cladding and concrete tile roofing. The dwelling incorporates three bedrooms and there is a single freestanding garage. Site development is average and includes established gardens and a new concrete driveway.	Photo
Sale price	$193,000
Floor area (m²)	106
Dwg Tce/deck Garaging (Int) Buildings Site dvplmnt Estimated LV	$ 88,000 $ 1,000 $ 0 $ 5,000 $ 4,000 $ 95,000
Land area (m²)	766 m²
Comparability	Of similar size, location and presentation to the subject property, therefore considered a good comparison to the subject property
Sale date	Photo
Sale price
Floor area (m²)
Dwg Tce/deck Garaging (Int) Buildings Site dvplmnt Estimated LV
Land area (m²)
Comparability
Sale date	Photo
Sale price
Floor area (m²)
Dwg Tce/deck Garaging (Int) Buildings Site dvplmnt Estimated LV
Land area (m²)
Comparability

7.2 Sales Reconciliation Table
Sale No.	Address	Sale date	Sale price	Land area (m²)	Comparability
1.	67 Williams Rd	Nov 2012	$175,000	870 m²	Inferior
2	22 Sharapova Cr	Jan 2013	$193,000	766 m²	Comparable
3
4

7.3 Comparable Sales of Vacant Land
Please rank the sales in order of sale price, lowest to highest.
442 Williams Road
Sale date	Jun 2012	An irregular vacant section on the same road as the subject.
Sale price	$105,000
Land area (m²)	850 m²
Zoning	Low Density Res.
Comparability	A good comparable
291 Errani Road
Sale date	Sept 2012	A vacant block in the same residential locality as the subject. Level contour.
Sale price	$111,000
Land area (m²)	780 m²
Zoning	Low Density Res.
Comparability	A good comparable
Sale date
Sale price
Land area (m²)
Zoning
Comparability

7.4 Sales Reconciliation Table
Sale No.	Address	Sale date	Sale price	Land area (m²)	Comparability
1	442 Williams Rd	Jun 2012	$105,000	850 m²	Comparable
2	291 Errani Rd	Sep 2012	$111,000	780 m²	Comparable
3
4
5

8.0 Valuation Approach and Reasoning
8.1 Valuation Approach(s)
Discuss the reasons for adopting the valuation approach you have used and reasons for not using the alternative (if any) approaches including: Market Approach (includes application methods such as direct sales comparison) Income Approach (includes application methods such as income capitalisation and discounted cash flow) Summation Approach (includes a depreciated replacement cost method) Greater reliance should be placed on actual inputs e.g. prices achieved for similar properties; actual cash flows generated by the property; the actual cost of similar assets over assumed costs. Assumed inputs may be relevant if the actual inputs are less reliable e.g. out of date.

8.2 Improved Sales Summary
Discuss the sales considered most comparable, why they are comparable and the value range they ultimately indicate for the subject property. Indicate here the considered highest and best use for the subject property.

8.3 Vacant Land Sales Summary
Discuss the sales you consider most comparable, why they are comparable and the value range they ultimately indicate for the subject property in all scenarios.

9.0 Valuation
Example - Residential dwelling on 850 m² site

Land Value
Land Area 850 m²	$
Value of Improvements
Dwelling – xxx m² @ $xx/ m²	$
Carport/ Garage – xxx m²	$
Site Development	$
Chattels	$
Total Value of Improvements	$	say	$
Market Value (GST incl. if any)	$

10.0 Concluding Remarks
This report is to be read in conjunction with the attached appendix documentation, including: the scope of works the terms of engagement the client engagement contract Please do not hesitate to contact me should you require any further assistance or clarification.

Valuer Company Contact Details

Appended Survey Plan

APPENDIX I - HYPOTHETICAL SUBDIVISION Example

This example is only suitable for a small to medium sized hypothetical subdivision that has an assessed sell down period of 12 months or less. For a hypothetical subdivision where the assessed sell down period is greater than 12 months we recommend the use of the discounted cash flow method of valuation. An explanation and analysed evidence of sell down periods should be included in the valuation report. The valuer may add to or alter this format. To support this method of valuation, we recommend reference to sales of block land. (Please note that the amounts and allowances used are example only).

Hypothetical Subdivision Worksheet
Val Ref:	xxxx/xxxx	CV	$ 500,000
Address:	116 Victoria Ave	LV	$ 475,000
Land Area (ha)	20	Rates	$ 1,473
Min. Size lot (ha)	5	Interest Rate	6.0%
No. Sites (max)	4	Profit & Risk	25.0%
Realisation period (yrs)	1
VALUATION CALCULATIONS
No of Lots - 4 sites
Lot 1	$ 380,000
Lot 2	$ 320,000
Lot 3	$ 320,000
Lot 4	$ 500,000
GROSS REALISATION	$ 1,520,000	$ 1,520,000
less GST	15.0%	$ 198,261
less Agents Commission	5.0%	of Gr. Real.	$ 76,000
less advertising	$ 500	per site	$ 2,000
less Legal Fees	$ 2,000	per site	$ 8,000	$ 86,000
NET REALISATION	$ 1,235,739
less Profit & Risk	25.0%	of Outlay.	$ 247,148
OUTLAY	$ 988,591
less Development Costs
Development (roading, services etc)	$ 25,000	per site	$ 100,000
Resource consent	$ 10,000	$ 10,000
Survey and title	$ 5,000	per site	$ 20,000
Reserve Contribution	$ 7,500	3 sites	$ 22,500
$ 152,500
Interest on Outlay
(1/2 sell down period)	6.0%	$ 29,658	$ 182,158
BLOCK VALUE (Excl. GST)	$ 806,434
Block Value Analysis	Per site	$ 201,608
Per ha	$ 40,322
Development Costs Analysis	Per site	$ 38,125
(excl. of Interest)	Per ha	$ 7,625