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A retrospective valuation is where a client ask for a property to be valued as at a certain time in the past.
It may be an unfamiliar term to you, but it is a common request from clients to have a retrospective property valuation.
What is a retrospective property valuation or a backdated property valuation?
A retrospective property valuation is a valuation of a property as at a specific time (or times) in the past. The property may be inspected at the present time, but the valuer will value the property as at a date in the past, and this may be for capital gains tax, immigration, stamp duty or estate settlement purposes for example.
The valuation figure will confirm what the property was worth at the retrospective date and can be used by the ATO, the SRO or all other government departments as needed.
Okay, so how do you complete a retrospective valuation?
Like with most other valuations the process is similar, whereby we will confirm the property to be valued and the date/s it is to be valued at. We will also confirm with you the condition of the property as at the retrospective date, and changes that may have occurred compared to our current inspection.
Once the inspection has been undertake the valuer will review sales of similar properties that sold around the retrospective valuation date, and use this as a basis for determining a market value of the property as at a past date.
The state of the property market, interest rates etc will also be considered as factors.
We conduct a large range of retrospective valuations for capital gains tax purposes, and it is crucial that the value provides a client with a high quality and accurate report to ensure no more tax is paid than necessary.
Another area for retrospective valuations is for expert witness and litigation. We undertake the valuation of properties in the past where the client may for example feel the property was sold under it true market value ie: in a mortgagee situation and our report may be used in evidence during legal proceedings.
There have been a number of settlements made by banks to clients in this area recently that we are aware of for example.
If you have any questions regards a retrospective property valuation feel free to contact us for further information.