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

Why a Template?

These Templates have been developed to

Help Valuers understand the valuation process for property disposed under the Public Works Act,

Ensure Valuers provide information in the valuation report that enables good decision making for all parties and make comparisons between valuations straight forward, and

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 for all stages of the valuation e.g. the ‘Before’ valuation, the ‘After’ valuation and the assessment of Injurious Affection (if any).

How to use this template

The report templates are the recommended report format to be used for PWA disposal work. The structure is based on the ANZVGN 1 and the IVS reporting standards. http://www.propertystandards.org.nz/course/view.php?id=2

Valuers are to use the headings of the template, presented in the same order as the template and with supporting commentary that provides at least 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).

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

Valuers that want 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 this 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.

MARKET VALUATION FOR DISPOSAL PURPOSES

62 LAKE ROAD

ANYTOWN

INSERT COVER PHOTO

File No.:

DATE

Client

Dear Client

ADDRESS OF PROPERTY TO BE VALUED

INTRODUCTION

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

We have been requested to provide an assessment of the market value of the property located at . We confirm that we have inspected the subject property on [date] and have carried out various investigations as evidence of value.

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

PURPOSE OF VALUATION

Note to Valuer - State here the type of valuation requested e.g. a market valuation of the subject property.

SITE AREA

RATING VALUATION (if available)

Roll Number – xxx/xxx

Land value	$

Value of Improvements	$

Capital Value	$

BRIEF PROPERTY DESCRIPTION

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 provided and attached to this report.

VALUATION APPROACH: Direct Comparison and Net Rate method of valuation

DATE OF INSPECTION:

DATE OF VALUATION:

VALUATION SUMMARY:

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

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

(Dollars)

Please contact the undersigned if you have any queries relating to this report.

Valuer

Company

Contact Details

Table of contents

1.0	SITE DESCRIPTION	6

2.0	LAND TENURE AND OWNERSHIP DETAILS	6

3.0	ZONING	7

4.0	IMPROVEMENTS DESCRIPTION	8

5.0	GENERAL MARKET DISCUSSION	10

6.0	CONSIDERATION OF SALES EVIDENCE	10

7.0	SALES EVIDENCE	11

8.0	VALUATION APPROACH AND REASONING	15

9.0	VALUATION	16

10.0	GST STATEMENT	16

11.0	CONCLUDING REMARKS	17

APPENDIX I	18

1.0	SITE DESCRIPTION

1.1	Location

City:

Situation:

Locality:

Amenities:

Surrounding developments:

Saleability of the area:

Insert map to show surrounding location and the subject property

1.2	LAND DESCRIPTION

The Land (use and shape)

Insert map to show property dimensions and topography if possible

Access to the Site

Vegetative Cover and Soils

Water Resources

Contour and Site Development

Aspect and view

Services

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 AND OWNERSHIP DETAILS

2.1	Certificate of Title 1 (delete the number where there is only one title)

Note to valuer - Delete the number where there is only one title

Computer Freehold Register Identifier

Land Registration District

Tenure

Legal Description/Appellation

Registered Proprietor

Land area of property

Interests Registered on Title

The following actions will be completed prior to disposal. Our valuation is made on this basis.

Example -

Draft SO Plan 456987 to be approved

Sections 1 and 2 to be legalised as road.

The above registrations are noted and are not considered to materially affect the value of the property.

Note to Valuer - Where the registrations on the title affect the market value of the subject property, the Valuer is to provide additional details)

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

2.2	Certificate of Title 2

Note to Valuer - Where the parent property is held in more than one title, list separately.

Computer Freehold Register Identifier

Land Registration District

Tenure

Legal Description/Appellation

Registered Proprietor

Land area of property

Interests Registered on Title

The above registrations are noted and are not considered to materially affect the value of the property

Note to Valuer - Where the registrations on the title affect the market value of the property, the Valuer is to provide additional details.

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

3.0	ZONING

3.1	Territorial Authority

3.2	District Plan

Note to Valuer - Please comment on the range of permitted activities and the application of the District Plan to the subject property.

4.0	IMPROVEMENTS DESCRIPTION

To follow is a brief description of improvements, concentrating on aspects of the property that have the greatest impact on value. 4.1 Dwelling
Type
Floor area
Year built (approx)
Storeys
Construction	Insert photos of Dwelling
Foundations
Floor
External walls
Roof
Joinery
Internal linings
Internal layout
Fixtures and fittings
Kitchen	Insert Photo of Kitchen
Dining
Lounge
Bedrooms
Bathroom
Toilet
Laundry
Hallway
Heating
Chattels
Decking/ Terrace
4.2 Other Buildings
Garage/ Carport	Insert Photos of Other Buildings
4.3 Site Improvements
Site Development	Insert Photos of Site development
4.4 Other Farm Buildings
Implement shed
Storage Shed	Insert photos of other farm buildings
4.5 Other Improvements
Track
Water supply
Fencing
Insert photos of other farm improvement and photos of the farm

4.6	Condition and Repair

Note to Valuer – Where deferred maintenance exists and remedial work is required to preserve the value of the asset, please note and provide an estimate (a range is acceptable) of remedial costs in the separate addendum requested in the Scope of Work.

5.0	GENERAL MARKET DISCUSSION

Note to Valuer – Please comment on general market trends, possible evidence of changes in market trends, observations on reported listing periods and movements thereof. The general market situation is then to be related to the market of the subject property.

6.0	CONSIDERATION OF SALES EVIDENCE

Example - In order to establish the market value for the subject property we have considered and analysed a number of sales. Sales of improved properties have been used as a basis for the Market Value and vacant land sales have been used to assess a Land Value. A selection of the sales considered, are detailed below.

Note to Valuer - Highlight key sales and for each sale record superior/similar/inferior in comments and comment on any allowance for time adjustments. Comment on any other important aspect of sales analysis detail such any as redevelopment potential or other alternative uses.

Where sales have development potential, include details of the considered potential site development of the sale e.g. how many lifestyle blocks/residential sections are permitted if subdivided and the likely sale prices and costs.

When undertaking a hypothetical subdivision, please provide evidence of realisation period and profit and risk allowances (Example attached in Appendix).

Where there is a paucity of actual sales evidence Valuers will need to comment on properties recently listed for sale and contact other property professionals to obtain alternative market evidence, e.g. offers, auctions etc.

7.0	SALES EVIDENCE

Note to Valuer – The curtilage area should align with the minimum site area allowable under the operative district plan.

Note to Valuer – For ease of understanding, please rank the sales in order of sale price, lowest to highest and please comment if the sale includes or excludes GST.

Photo	116 Te Awa Rd
Sale date	Sep 2011	A small equine property situated 2.5km south of Grandtown. Includes a basic three bedroom fibro-plank dwelling, stables/implement shed and good post and rail fencing. Undulating contour. This sale includes GST
Sale price	$897,000
Land area (ha)	6.7439
Analysed Curtilage (5000m2)	$150,000
Analysed Dwg Val (…M2)	$95,000
Analysed Site Imps Val (resi curtilage)	$50,000
Analysed Other Imps Val (residue)	$200,000
Residual LV/ha	$64,380
Comparability	Poorer improvements and overall inferior to subject.
Photo	250 East Canal Rd
Sale date	May 2011	This property is situated to the north of Newtown City, in the Northern District. This property includes a 3 bedroom dwelling in average condition and an old workshop. The land is zoned Rural and is undulating in contour. Sale price is inclusive of GST.
Sale price	$985,000
Land area (ha)	8.2343
Analysed Curtilage (5000m2)	$250,000
Analysed Dwg Val (…m2)	$120,000
Analysed Site Imps Val (resi curtilage)	$65,000
Analysed Other Imps Val (residue)	$100,000
Residual LV/ha	$58,180
Comparability	Overall comparable to subject property due to the location and improvements.
Photo
Sale date
Sale price
Land area (ha)
Analysed House & Curtilage (…m2)	$
Analysed Dwg Val (…m2)	$
Analysed Site Imps Val (resi curtilage)	$
Analysed Other Imps Val (residue)	$
Residual SP/ha	$
Comparability

7.1	Sales Reconciliation Table

Sale No.	Address	Sale date	Sale price	Land area (ha)	Comparability ‘
1	116 Te Awa Rd	Sep 2011	$896,850	6.7439 ha	Inferior
2	250 East Canal Rd	May 2011	$985,000	8.2343 ha	Comparable
3
4
5

7.2	Comparable Sales of Vacant Land

Note to Valuer – For ease of understanding, please rank the sales in order of sale price, lowest to highest and please comment if the sale includes or excludes GST.

Note to Valuer – Please reference comparable sales of vacant residential land to enable analysis of the residential curtilage.

Photo	315 Queens Rd
Sale date	Oct 2011	A block with no dwelling but good post and rail fencing and good character style implement sheds. Located in isolated Wealton 18km south of Newtown. Good quality small holdings, equine properties and lifestyle properties situated in the surrounding area. The sale price includes GST
Sale price	$787,000
Land area (ha)	8.8090
Esti. Val of Imps	$195,000
Analysed Ld Val	$592,000
Analysed House site (5000 m2)	$175,000
Residual LV/ha	$47,300
Comparability	Slightly bigger than subject however locality inferior to subject therefore overall comparable to subject property
Photo	291 Corner Rd (vacant residential land sale)
Sale date	May 2011	Bare site on fringe of urban boundary. Of easy contour and provided with services. The sale price includes GST
Sale price	$150,000
Land area (ha)	0.1500
Esti. Val of Imps	$65,000
Analysed Ld Val	$764,000
Comparability	A good comparison for the residential curtilage portion.

7.3	Vacant Land Sales Reconciliation Table

Sale No.	Address	Sale date	Sale price	Land area (ha)	Comparability
1	315 Queens Rd	Oct 2011	$787,000	8.8090	Comparable
2
3
Residential Land
4	219 Corner Rd (resi)	May 2011	$150,000	0.1500	Comparable
5
6

8.0	VALUATION APPROACH AND REASONING

8.1	Valuation Approach/s

Note to Valuers –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 identical or similar properties; actual cash flows generated by the property; the actual cost of identical or similar assets over assumed costs. Assumed inputs may be relevant if the actual inputs are less reliable e.g. out of date.

Example - We consider that the most relevant method of valuation is the Market Approach (direct sales comparison). A wide range of sales evidence has been used to assess the Market Value of the subject property with the most comparable sales discussed later in this report. Other valuation approaches have not been adopted as it is considered that there is an adequate volume of sales (actual inputs) on which to base the valuation.

8.2	Valuation Reasoning

The main sales evidence on which this valuation is based on the improved and vacant sales, as previously analysed. Value levels and key sales are discussed below.

8.3	Improved Sales Summary

Note to Valuers –Discuss the sales you consider most comparable, why they are comparable and the value range they ultimately indicate for the subject property.

8.4	Vacant Sales Summary

Note to Valuers –Discuss the sales you consider most comparable, why they are comparable and the value range they ultimately indicate for the subject property.

9.0	VALUATION

Land Value

m2 site @ $/m2	$	,000

ha @ $/ha	$	,000

Total Land Value	$	,000

Buildings

Dwelling xxx m2	$	,000

Carport	$	,000

Implement Shed	$	,000

Storage Shed	$	,000

Value of Buildings	$	,000

Other Improvements

Chattels	$	,000

Site Development	$	,000

Water Supply	$	,000

Tracks	$	,000

Fencing	$	,000

Value of Other Improvements	$	,000

Value of Improvements	$	,000

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

10.0	GST Statement

Note to Valuer – This paragraph is particular to the NZ Transport Agency. Unless requested, delete if you are undertaking a valuation for other clients.

In order to obtain complete clarity on its position, the NZ Transport Agency requests an assessment of the compensation on a ‘Plus GST, if any’ basis.

Market Value (plus GST, if any)	$	,000.

Please do not hesitate to contact me should you require any further assistance or clarification.

11.0	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

disclosure and compliance statement

Please do not hesitate to contact me should you require any further assistance or clarification.

Valuer

Company

Contact Details

Appended

Appendix I

Mitigation Reports

APPENDIX I

HYPOTHETICAL SUBDIVISION Example

Note to Valuers – 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 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 excl gst	$ 66,000
less advertising	$ 500	per site	$ 2,000
less Legal Fees	$ 2,000	per site	$ 8,000	$ 76,000
NET REALISATION	$ 1,245,739
less Profit & Risk	25.0%	of Outlay	$ 249,148
OUTLAY	$ 996,591
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)	$ 814,433
Block Value Analysis	Per site	$ 203,600
Per ha	$ 40,700
Development Costs Analysis	Per site	$ 38,125
(excl. of Interest)	Per ha	$ 7,625