Whether you’re buying, selling, refinancing, or resolving a legal matter, understanding a property’s true market value is critical. A property valuation provides an expert, evidence-based assessment of a property’s worth, allowing you to make informed decisions with confidence.
This article explains the property valuation process, when it’s required, who conducts it, and how it differs from a real estate appraisal.
What Is a Property Valuation?
A property valuation is a formal assessment of a property’s current market value, completed by a certified valuer. This report is:
- Based on a physical inspection
- Supported by market data and recent comparable sales
- Legally recognised and accepted by banks, the ATO, and courts
Valuations are most commonly used for:
- Securing a home loan or refinancing
- Legal proceedings (e.g. divorce, probate)
- Tax reporting (e.g. Capital Gains Tax or SMSF compliance)
- Selling or purchasing property
- Insurance and risk management
Who Conducts a Property Valuation?
Property valuations must be carried out by a qualified and registered valuer—often a Certified Practising Valuer (CPV) accredited through the Australian Property Institute (API).
Unlike real estate agents, who offer informal price estimates for marketing purposes, valuers are trained to apply strict methodologies and provide objective, independent reports.
What’s Included in a Valuation Report?
A standard property valuation report will typically contain:
- Legal property description and site details
- Photos of the dwelling and land
- Notes from the on-site inspection
- List of recent comparable property sales
- Zoning information and planning considerations
- Market conditions summary
- Final estimated market value
- Limitations, assumptions, and scope of use
The report can be used by lenders, solicitors, accountants, or courts, depending on your needs.
What Affects Property Value?
A wide range of factors influence the outcome of a property valuation, including:
Location
- Proximity to amenities, schools, shopping, and public transport
- Desirability of the suburb or street
- Local council zoning and overlays
Condition and Improvements
- Renovations, extensions, and overall maintenance
- Age and quality of construction
- Energy-efficient or eco-friendly features
Land Size and Development Potential
- Large blocks, corner lots, and dual frontage can raise value
- Zoning for higher-density or commercial use may also impact valuation
Market Conditions
- Current buyer demand, interest rates, and housing supply
- Recent local sales of comparable properties
Property Valuation vs Appraisal: What’s the Difference?
It’s common to confuse valuations with appraisals—but they serve different purposes:
| Feature | Property Valuation | Real Estate Appraisal |
| Conducted by | Certified property valuer | Real estate agent |
| Legal/financial use | ✅ Yes | ❌ No |
| Accuracy | Based on methodology and evidence | Based on opinion and experience |
| Cost | Paid service | Often free |
| Used for | Loans, legal, tax, estate | Setting a sale price |
If you’re dealing with banks, lawyers, or the ATO, you’ll need a formal valuation—not just an agent’s appraisal.
How Much Does a Property Valuation Cost?
Fees vary depending on the property type, location, and purpose:
- Residential homes: $350 – $600
- Commercial properties: $1,000 – $3,000+
- Urgent valuations (24–48 hour turnaround): May attract higher fees
Your lender may arrange (and sometimes cover) the cost if you’re refinancing or applying for a mortgage.
How to Prepare for a Property Valuation
To ensure an accurate outcome, follow these tips:
- Tidy and declutter the property (inside and out)
- Complete small repairs that could affect first impressions
- Provide documents such as recent renovation records, building approvals, or tenancy agreements
- Highlight upgrades like solar systems, smart tech, or energy-efficient features
- Allow full access to all rooms, outbuildings, and external areas
Conclusion
A certified property valuation offers more than just a price—it’s an essential tool for smart, informed decision-making. Whether you’re navigating a sale, applying for finance, managing a legal issue, or preparing for retirement, an independent valuation gives you a clear, defensible picture of your property’s true worth.
Need a property valuation? Work with a certified professional who understands your local market and can deliver a reliable report tailored to your needs.
