Whether you’re buying, selling, refinancing, or navigating a legal or tax matter, understanding the value of your property is crucial. That’s where a property valuation comes in.
A property valuation is more than just a figure — it’s a professional, evidence-based assessment that helps you make informed decisions and meet financial or legal requirements.
In this guide, we break down what property valuation means in Australia, how it works, when you need one, and why it’s different from a real estate appraisal.
What Is a Property Valuation?
A property valuation is an independent, formal assessment of a property’s current market value, conducted by a certified valuer.
Unlike a real estate agent’s estimate (often used for marketing), a valuation is legally recognised and used for:
- Financing (mortgages and refinancing)
- Capital Gains Tax (CGT) calculations
- Family law and estate settlements
- Insurance purposes
- Self-managed super funds (SMSF)
- Investment and asset management decisions
Who Can Provide a Property Valuation?
Only a Certified Practising Valuer (CPV) — registered with the Australian Property Institute (API) — or an accredited RICS valuer is legally qualified to provide a property valuation report in Australia.
They must adhere to industry standards and ethics, ensuring their reports are unbiased, data-driven, and accepted by banks, courts, and the ATO.
When Do You Need a Property Valuation?
You might need a property valuation for:
Home loan applications or refinancing
Banks require valuations to calculate your loan-to-value ratio (LVR).
Buying or selling a property
Especially useful in private sales, off-market deals, or unique homes with no clear comparables.
Divorce or separation
A court-approved valuation ensures fair property division.
Deceased estates
Valuations help executors distribute assets or prepare for probate.
Capital Gains Tax (CGT)
When selling an investment property or changing its use, a valuation may be required to establish a cost base.
Insurance purposes
To calculate rebuild cost for adequate coverage.
Property Valuation vs Agent Appraisal
| Feature | Property Valuation | Real Estate Appraisal |
| Who performs it | Certified valuer (API or RICS) | Real estate agent |
| Legal recognition | Yes | No |
| Use for finance, tax, law | Accepted | Not accepted |
| Based on sales evidence | Yes | Often includes price projections |
| Cost | $400–$700+ | Usually free |
How the Property Valuation Process Works
Step 1: Engagement
You or your representative (e.g., solicitor or bank) engages the valuer and outlines the purpose of the valuation.
Step 2: On-Site Inspection
The valuer visits the property to assess:
- Land size and zoning
- Building structure and condition
- Number and size of rooms
- Renovations or improvements
- Outdoor spaces and off-street parking
- Location and neighbourhood influences
Step 3: Market Analysis
They review:
- Recent sales of similar properties
- Local market trends and supply/demand
- Economic conditions and interest rates
- Any relevant zoning overlays or restrictions
Step 4: Report Delivery
You receive a detailed, legally compliant report with:
- Property overview
- Comparable sales data
- Market commentary
- Final assessed market value
- Supporting documentation and photographs
Turnaround: Usually 2–5 business days.
Factors That Influence a Property’s Valuation
- Location: Proximity to transport, schools, and lifestyle amenities
- Land size and usability
- Zoning and development potential
- Presentation and condition
- Recent local sales (used as comparables)
- Current market trends (buyer demand, economic climate)
How Much Does a Property Valuation Cost?
| Property Type | Typical Cost (AUD) |
| Standard residential | $400–$700 |
| Prestige or rural homes | $800–$1,500+ |
| Commercial property | Custom quote |
Tip: Some finance valuations may be covered by your lender.
How to Prepare for a Property Valuation
- Tidy and clean the property to make a strong impression
- Fix small repairs (leaky taps, broken tiles, garden maintenance)
- Provide renovation records or council approvals
- Highlight special features (solar panels, security systems, upgrades)
- Ensure access to all rooms and outdoor spaces
While valuers are objective, good presentation can positively influence perceived condition.
Conclusion
A professional property valuation gives you more than a number — it gives you a clear, legally defensible understanding of your property’s true market worth.
Whether you’re refinancing, selling, resolving a dispute, or planning your finances, working with a qualified property valuer ensures your next move is informed, compliant, and financially sound.
