If you sit on an owners corporation committee, manage a strata scheme, or are working through an insurance or capital works question, you’ve probably wondered whether a valuer really needs to walk the site. It’s a fair question. Inspections take time and cost money, and much of the information you need is already sitting in plans, reports and records.

Common property is one of the trickier parts of a strata scheme to value, though, and the answer depends heavily on why you need the valuation. If your scheme is also budgeting for shared-building upgrades, cost planning may help you make those decisions alongside the valuation. This article covers what common property is, when a valuation can be done without visiting the building, where that approach falls short, and what to have ready if an inspection is needed.

Summary

A common property valuation can sometimes be prepared without an on-site inspection, usually as a desktop assessment based on plans, photos and records supplied by the owners corporation. That can be useful for early budgeting or a rough estimate, but the valuer is working from assumptions they haven’t been able to check.

For formal purposes such as insurance, a dispute, court proceedings or a lender’s requirements, an inspection is usually needed so the valuer can confirm the condition, extent and quality of what’s actually there. The key is to tell your valuer why you need the valuation and ask them what they can and can’t confirm without visiting the site.

What Is a Common Property Valuation?

Common property is the part of a strata scheme that isn’t inside any individual lot. It belongs to the scheme as a whole and is managed by the owners corporation on behalf of all lot owners. In a typical apartment block, that could include the foyer, lifts, stairwells, the roof, external walls, driveways, gardens, pools, gyms and any car park areas that aren’t allocated to a specific lot.

A common property valuation puts a dollar figure on those shared assets. Because common property usually isn’t sold on its own, there’s rarely a market sale price to point to, so valuers rely on replacement cost, condition and the extent of the assets.

Why a valuation might be needed

Owners corporations and their advisers usually request these valuations for things like:

Making sure building or common property insurance reflects what it would cost to rebuild or replace those assets
Planning capital works, such as major repairs or upgrades to shared areas
Resolving disputes between owners or with the owners corporation
Supporting financial reporting or budgeting decisions
Providing evidence in a legal or tribunal matter, where the difference between a formal valuation and an appraisal can affect which type of report is appropriate.

How the rules differ between states

The terminology and governing legislation vary across Australia. In NSW, the Strata Schemes Management Act 2015 sets out how schemes operate, and the registered strata plan shows which areas are lots and which are common property. In Victoria, the equivalent body is the owners corporation under the Owners Corporations Act 2006. In Queensland, schemes are body corporates under the Body Corporate and Community Management Act 1997.

The practical point is that the strata plan and the governing legislation for your state determine what counts as common property, so start there before worrying about valuation methods.

Can a Common Property Valuation Be Done Without Visiting the Site?

Sometimes, yes. Valuers can prepare what’s often called a desktop valuation, where the assessment is based on documents rather than a physical inspection. This can be a sensible option for a preliminary figure or where the valuer has already inspected the scheme recently.

But “no inspection” doesn’t mean “no assumptions”. A desktop assessment still requires the valuer to evaluate the information provided and explain what cannot be verified without a physical inspection, including the condition, extent and quality of the assets described in the records. That’s where the limitations come in.

What a desktop approach can work with

The registered strata plan and any amendments
Building plans, drawings or surveys
Schedules of common property features and maintenance logs
Previous valuations and insurance schedules
Capital works fund plans and recent building or maintenance reports
Recent photos supplied by the owners corporation

Where desktop valuations fall short

Condition is unknown. Age, cracking, water damage, concrete deterioration or corrosion can change the value significantly, and photos don’t always show these clearly.
Items aren’t on the plans. Pergolas, garden structures, retaining walls and added equipment often aren’t recorded.
Quantities may be inaccurate. Plans can be outdated, and renovations or additions may not have been documented.
Quality and finish are hard to judge. A lift, pool or lobby finish can vary a lot in cost, and that’s difficult to assess from images alone.
Boundaries can be unclear. If the plan doesn’t match what’s on the ground, it may be hard to tell where common property ends and a lot begins.

When an On-Site Inspection Is Usually Needed

An inspection is generally expected where the valuation will be relied on for something important. You’ll usually need one for:

Insurance valuations, where an underestimate can leave the scheme underinsured
Court, tribunal or dispute matters, where the evidence has to hold up under scrutiny
Lender or financier requirements
Capital works planning for significant repairs or replacements
Any situation where the valuer needs to confirm condition, extent or quality

Why Common Property Is Harder to Value From Plans Alone

Common property is spread across the whole scheme and often includes a mix of old and new assets. A building from the 1980s might have a refurbished lobby, original roofing and a newer lift, all in the same scheme. A plan can’t show you any of that.

Condition and age matter more than you’d expect

Two identical-looking common areas can have very different values depending on how well they’ve been maintained. A roof that’s been repainted and repaired regularly is worth something different to one that’s been ignored, even if they look similar in a photo.

Features that don’t show up on plans

Many shared assets are added over time and never make it onto the original drawings. Gardens, irrigation systems, bike storage, security gates, intercom systems and pool equipment are common examples. A valuer who hasn’t seen them may miss them entirely.

What to Prepare If You Need a Valuation With an Inspection

Good preparation can make the inspection faster and the valuation more accurate. Gather these before the valuer visits:

The current registered strata plan and any amendments
Building plans, drawings or surveys
A schedule of common property features, if the owners corporation keeps one
Maintenance logs, repair invoices and any recent upgrade records
The capital works fund plan and recent building or maintenance reports
Current insurance schedules and any previous valuations
Access arrangements and a contact person, such as the building manager or strata manager

Common Misconceptions About Common Property Valuation

“The strata plan tells you everything”

The strata plan shows boundaries and lot allocations, but it doesn’t describe the condition, quality or replacement cost of shared assets. It’s a starting point, not the full picture.

“Photos are enough”

Photos are helpful but limited. They rarely show structural issues, hidden defects or the quality of materials, and they can make an asset look better or worse than it really is.

“A valuation for one lot covers the common property too”

Lot valuations and common property valuations are different exercises. A unit’s market value says nothing about what the shared roof, lifts or gardens are worth.

Frequently Asked Questions

Is a desktop common property valuation as reliable as one with an inspection?

Not usually, particularly for formal purposes. A desktop figure can be a useful estimate for planning, but its reliability depends on how complete and current the documents are. For insurance, disputes or lending, most parties will expect an inspection.

Who usually arranges a common property valuation?

Typically the owners corporation committee or strata manager commissions it. Insurers, lawyers or lenders may also request one depending on the purpose. Check who needs the report and what they’ve asked for before you engage a valuer.

What should I look for in a valuer?

Look for professional membership with a recognised body such as the Australian Property Institute, along with experience with strata and common property assets. Ask what they’ve done for similar schemes and whether they’ve worked on the type of building you have.

How long does a common property valuation take?

It depends on the scope. A desktop assessment can often be turned around more quickly, while an inspection and full written report takes longer. Ask your valuer for a timeframe before you commit, and check whether it includes travel and access arrangements.

Conclusion

A common property valuation can sometimes be prepared without visiting the site, usually as a desktop assessment built on plans and records. That can work for early planning, but the figure depends on assumptions about condition and extent that someone needs to verify before it’s relied on for insurance, disputes or lending. Be clear about the purpose, and ask your valuer which parts they can confirm without an inspection.

Need Help Deciding Whether You Need an Inspection?

If you’re not sure whether your scheme needs a site inspection for a common property valuation, Exclusive Strata Valuers can talk through your situation and explain what’s realistic for your building. Call Exclusive Strata Valuers on +61 438 080 786.

Can You Get a Common Property Valuation Without an On-Site Inspection?

Summary