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

Why a Template?

These Templates have been developed to

  1. Assist valuers to understand the valuation process for property acquired under the Public Works Act,
  2. Ensure Valuers provide information in their valuation reportsto enable good decision making
  3. Enable easier comparisons between valuation reports
  4. 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 provide the recommended report format to be used for PWA acquisition work.
  • The structure is based on the ANZ Practice Standard 1, ANZVGN 5 and the IVS reporting standards.
  • 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 textwill 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 COMPENSATION PURPOSES

PROPERTY ADDRESS

DATE OF VALUATION

PHOTO

VALUATION SUMMARY

File No.

Date

Client

Landowner

Property Address

Instructed By

We refer to the written instruction from companyand 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 compensation valuation under Section 62 Public Works Act 1981 for total or partial acquisition and include if you have been requested to provide assessments such as a rental assessment, business loss, disturbance etc.

Date of Inspection

Date of Valuation

Land Area (To Be Acquired)

Rating Valuation

Roll Number

Land value$

Value of Improvements$

Capital Value$

Brief Property Description

Example - The subject property comprises a rural/ residential property of 7.25 hectares and located on the fringe of the Waikato township of Cambridge. The land is improved with an attractive double storey dwelling of come 30 years old, plus other improvements of a workshop, established gardens and good quality fencing. It is currently been used for grazing.

2.05 hectares of the property is required for the Cambridge Section of the Waikato Expressway.

Valuation Assumptions

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

Examples -

  • Our compensation assessment has been assessed for the specific purpose of compensation under the Public Works Act 1981 and no responsibility is accepted in the event that this report is used for any other purpose.
  • Our assessment addresses the Market Value of the property subject to the existing tenancy arrangements.
  • We assume the boundary fencing will be reinstated by the New Zealand Transport Agency (Transport Agency), and our compensation assessment is made on this basis.
  • The valuation is based on the Land Requirement Plans provided by the instructing party and the proposed access plans.
  • This report should be read in conjunction with our previous report dated 1 April 2011.

Valuation ApproachDirect Comparison and ‘Before and After’ approach to Valuation.

Extent of Inspection

Nature and Source of Information Relied Upon

Valuation Summary

We assess the Compensation(including chattels), for the total property/partial acquisition of the required landto be:

Compensation$,000

Apportionment of Compensation

Delete if valuation is for total purchase

Land & Improvements (GST inclusive, if any)$,000

Injurious Affection $,000

Compensation$,000

Less Betterment$,000

Total Compensation$,000

Valuer

Company

Contact Details

DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENT

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

  1. Restrictions on Use, Distribution or Publication.
  2. Market Movement.
  3. Valuers Interest.
  4. Market Value Definitions.
  5. 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.
  6. Identification and status of the Valuer.

TABLE OF CONTENTS

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

Why a Template?

VALUATION SUMMARY

DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENT

TABLE OF CONTENTS

VALUATION REPORT

1.0SITE DESCRIPTION

2.0LAND TENURE

3.0RESOURCE MANAGEMENT

4.0RESOURCE CONSENT

5.0IMPROVEMENTS DESCRIPTION

6.0PROPOSED ACQUISITION

7.0GENERAL MARKET DISCUSSION

8.0SALES EVIDENCE

9.0VALUATION APPROACH AND REASONING

10.0COMPENSATION

11.0VALUATION PROCESS

12.0VALUATION (TOTAL ACQUISITION)

13.0VALUATION (PARTIAL ACQUISITION)

14.0COMPENSATION ASSESSMENT

15.0CONCLUDING REMARKS

APPENDIX I - HYPOTHETICAL SUBDIVISION Example

VALUATION REPORT

1.0SITE DESCRIPTION
1.1Location
  • City

  • Situation

  • Locality

  • Amenities

  • Surrounding development

  • Saleability of the area

Insert map to show surrounding location and position of subject property.

1.2The Land
  • Land use

  • Land area and shape

  • Contour and site development

  • Aspect and view

  • Services

  • Access

Insert aerial photo of the subject property

1.3Environmental 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.
Example – As at the effective date of valuation there was no evidence to suggest previous or current uses of the property have impacted negatively on the value.
2.0LAND TENURE
2.1Certificate of Title (1)
Delete the number when there is only one title
  • Computer Freehold Register Identifier

  • Tenure

  • Legal Description/ Appellation

  • Registered Proprietor

  • Land Area of Affected Property

  • Interests Registered on Title

The above (non-financial)registrationsare noted and are not considered to materially affect the value of the property.

Where the registrations on the title affect the market value / saleability of the subject property, the valuer is to provide additional details. The valuer should comment on the non-financial registrations and encumbrances only.

Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.

  • The Required Land
/ Example - The land required from this title, Ref. WNXX/XXX, is a 2.05 ha triangular parcel of land on the rear boundary to be used for road widening.
2.2Certificate of Title (2)
Where the affected property is held in more than one title, list the titles separately and note the part to be acquired.
  • Computer Freehold Register Identifier

  • Tenure

  • Legal Description/ Appellation

  • Registered Proprietor

  • Land Area of Affected Property

  • Interests Registered on Title

The above (non-financial) 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 / saleability of the subject property, the valuer is to provide additional details. The valuer should comment on the non-financial registrations and encumbrances only.

Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.

  • The Required Land

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

3.0RESOURCE MANAGEMENT
  • District Plan

  • Zoning

  • Permitted Uses

  • Heritage

  • Designations

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.
4.0RESOURCE 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.
5.0IMPROVEMENTS DESCRIPTION
To follow is a brief description of the improvements and their condition, at the date of inspection
5.1Dwelling
  • Type

  • Floor Area

  • Year Built (approx.) plus additions

  • Levels

(Insert photographs of the dwelling, front and rear views)

5.1.1Construction
  • Foundations

  • Floor

  • External cladding

  • Roof

  • Joinery

  • Internal linings

  • Decks / Terraces

5.1.2Internal Layout (including fixtures and fittings)
  • Kitchen

  • Dining

  • Lounge

  • Bedrooms

  • Bathroom(s)

  • Laundry

  • Hallway

  • Heating

  • Chattels

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

5.2Other Buildings
  • Garage / Carport

  • Other

(Insert photographs of the Other Buildings)

5.3Other Farm Buildings
  • Implement Shed

  • Workshop

(Insert photographs of the Other Farm Building)

5.4Other Improvements
  • Site Development

  • Tracks

  • Water Supply

  • Fencing

(Insert photographs of the Other Improvements)

5.5Condition and Repair
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 as requested in the scope of works.
6.0PROPOSED ACQUISITION
6.1Description of Project
Briefly describe the project for which the acquisition forms part and include a map showing the location of the subject property in relation to the project.
6.2Description of Proposed Acquisition
Describe the land to be acquired, dimensions etc. Refer to the Land Requirement Plan provided.
Delete the following paragraph if the acquisition is of the entire property.
6.3Impact of Acquisition on Property
Describe the impact of the project when completed on the retained land. This needs to include the distance of the proposed work to any dwelling on the retained land.
Describe any mitigation work proposed and the effect of this work in relation to the retained land.
If the impact of the project injuriously affects the retained land i.e. depreciation in value caused by the operation of the public work on completion, describe the factors that contribute to the injurious affection e.g. increased traffic noise, loss of privacy etc.
Similarly, if the impact of the project on the retained land is positive, or creates betterment, then the factors that contribute to the betterment are to be described.
6.4Improvements on Land to be Acquired
Describe the improvements that form part of the property that is being acquired.
7.0GENERAL MARKET DISCUSSION
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 to be related to the market of the subject property.
8.0SALES EVIDENCE
8.1Comparable Sales of Improved Properties
8.1.1 ‘Before’ Valuation (Ignoring the Work)
Delete this heading if valuation is for total purchase.
In some localities and / or situations comparable sales may notrelate to the subject property both in the ‘Before’ scenario and in the ‘After’ scenario or there may be a paucity of sales, therefore comment as such and note the comparability in the Sales Reconciliation Table.
However in a market of larger scale, where sales are regularly recorded, the Valuer must provide sales evidence and analysis (both improved and vacant land sales) to support both the ‘Before’ and ‘After’ valuations for the subject property.
Please rank the sales in ascending order of sale price, lowest to highest.
  1. 116 Nadal Road

Sale date / Sep 2011 / A small equine property situated 2.5 km south of Grandtown. Includes a basic three bedroom, light weight constructed dwelling. Stables/ implement shed and average post and rail fencing. Of undulating contour.
This sale includes GST / Photo
Sale price / $897,000
Land area (ha) / 6.74
Analysed Curtilage
(2,000.m²) / $150,000
Analysed Dwg Val
(…m²) / $95,000
Analysed Site Imps val (curtilage) / $50,000
Analysed Other Imps
Val (residue) / $200,000
Residual LV/ha / $61,468
Comparability / Of similar location to the subject though with inferior improvements to the subject property, therefore inferior to the subject property overall.
Sale date / Photo
Sale price
Land area (ha)
Analysed Curtilage
(…..m²)
Analysed Dwg Val
(…m²)
Analysed Site Imps val (curtilage)
Analysed Other Imps
Val (residue)
Residual LV/ha
Comparability
Sale date / Photo
Sale price
Land area (ha)
Analysed Curtilage
(…..m²)
Analysed Dwg Val
(…m²)
Analysed Site Imps val (curtilage)
Analysed Other Imps
Val (residue)
Residual LV/ha
Comparability
Sale date / Photo
Sale price
Land area (ha)
Analysed Curtilage
(…..m²)
Analysed Dwg Val
(…m²)
Analysed Site Imps val (curtilage)
Analysed Other Imps
Val (residue)
Residual LV/ha
Comparability
8.1.2 ‘After’ Valuation (Ignoring the Work)
Delete this heading if valuation is for total purchase.
Please rank the sales in ascending order of sale price, lowest to highest.
  1. 396 Ferrer Road

Sale date / Nov 2011 / Irregular shaped block with a basic 1970's single level dwelling and garage. Flat contour. Situated 6km north west of Grandtown.
This sale includes GST / Photo
Sale price / $675,000
Land area (ha) / 4.57
Analysed Curtilage(2,000.m²) / $150,000
Analysed Dwg Val(…m²) / $90,000
Analysed Site Imps val (curtilage) / $20,000
Analysed Other ImpsVal (residue) / $125,000
Residual LV/ha / $66,400
Comparability / Due to the size and location of the sale, we consider this sale to be slightly inferior to the subject property on an ‘after’ valuation basis.
Sale date / Photo
Sale price
Land area (ha)
Analysed Curtilage(…..m²)
Analysed Dwg Val(…m²)
Analysed Site Imps val (curtilage)
Analysed Other ImpsVal (residue)
Residual LV/ha
Comparability
Sale date / Photo
Sale price
Land area (ha)
Analysed Curtilage(…..m²)
Analysed Dwg Val(…m²)
Analysed Site Imps val (curtilage)
Analysed Other ImpsVal (residue)
Residual LV/ha
Comparability
8.2Comparable Sales of Vacant Land
Please rank the sales in ascending order of sale price, lowest to highest.
Ideally there should be adequate comparable sales to analyse both ‘before’ and ‘after’ sales. Realistically and dependent on the property type plus the strength of the market for the property, the sales volume may be restricted. In this situation, comment on the comparability of the sales to the ‘before’ and ‘after’ scenarios.
  1. 25 Murray Road

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 / Photo or aerial map of sale
Sale price / $787,000
Land area (ha) / 8.81
Esti. Value of Imps / $195,000
Analysed Land Val / $592,000
Analysed House Site
(5000m²)
Residual LV/ha / $47,300
Comparability / Slightly bigger than subject however locality inferior to subject therefore overall comparable to subject property in the ‘before’ situation and superior in the ‘after’ situation.
Sale date / Photo or aerial map of sale
Sale price
Land area (ha)
Esti. Value of Imps
Analysed Land Val
Analysed House Site
(……..m²)
Residual LV/ha
Comparability
Sale date / Photo or aerial map of sale
Sale price
Land area (ha)
Esti. Value of Imps
Analysed Land Val
Analysed House Site
(……..m²)
Residual LV/ha
Comparability
8.3 Sales Reconciliation Table
Sale No. / Address / Sale date / Sale price / Land area (ha) / Comparability
‘Before’ ‘After’
Sales of Improved Properties
1 / 116 Nadal Rd / Sep 2011 / $897,000 / 6.74 ha / Inferior
2 / 396 Ferrer Rd / Nov 2011 / $675,000 / 4.57 ha / Inferior
3
Sales of Vacant Land
1 / 25 Murray Rd
2
3
8.4Comparable Sales of Retained Land (including impact of work)
Delete this heading if valuation is for total purchase.
The following sales should represent the situation of the subject property taking into account the proposed work. Where possible, include vacant land sales that represent the situation on completion of the proposed work.
  1. 503Federer Road

Sale date / Sep 2011 / Improved with a small 3 bedroom cottage, stables/implement shed and good post and rail fencing, this property is tidy and has SH2 along one boundary, access being off a side road.
This sale includes GST / Photo
Sale price / $420,000
Land area (ha) / 5.01
Analysed Curtilage(2,000 m² / $125,000
Analysed Dwg Val(…m²) / $90,000
Analysed Site Imps val (curtilage) / $10,000
Analysed Other ImpsVal (residue) / $15,000
Residual LV/ha / $37,400
Comparability / Poorer quality improvements than the subject property and overall inferior to the subject property.
Sale date / Photo
Sale price / $
Land area (ha)
Analysed Curtilage ( m²) / $
Analysed Dwg Val(…m²) / $
Analysed Site Imps val (curtilage) / $
Analysed Other ImpsVal (residue) / $
Residual LV/ha / $
Comparability / .
Sale date / Photo
Sale price / $
Land area (ha)
Analysed Curtilage ( m² / $
Analysed Dwg Val(…m²) / $
Analysed Site Imps val (curtilage) / $
Analysed Other ImpsVal (residue) / $
Residual LV/ha / $
Comparability
8.5 Sales Reconciliation Table
Sale No. / Address / Sale date / Sale price / Land area (ha) / Comparability
1 / 503 Federer Rd / Nov 2011 / $675,000 / 4.57 ha / Inferior