A property valuer and a real estate agent discussing a valuation report

Property Valuations vs. Real Estate Appraisals – What’s the Difference?

Many people confuse property valuations with real estate appraisals, but they serve very different purposes.

 

What is a Property Valuation?

A property valuation is a formal, independent assessment conducted by a licensed property valuer.

  • Legally recognised for tax, mortgage, and legal purposes
  • Based on in-depth market research and property analysis
  • Unbiased and independent – Not influenced by potential sales commissions

When Do You Need a Property Valuation?

  • Buying or selling a home
  • Applying for a mortgage or refinancing
  • Investment property analysis
  • Capital gains tax or legal settlements

 

What is a Real Estate Appraisal?

A real estate appraisal is an estimated market price provided by a real estate agent.

  • Used for selling purposes – Helps determine a listing price
  • Not legally recognised – Cannot be used for tax or bank applications
  • Influenced by market trends and sales strategies

 

Key Differences Between a Property Valuation and a Real Estate Appraisal

Feature Property Valuation Real Estate Appraisal
Who Conducts It? Licensed Property Valuer Real Estate Agent
Legal Recognition Recognised for banks, legal, & tax purposes Not legally binding
Purpose Mortgage, tax, legal, & investment decisions Selling & marketing strategy
Bias 100% independent May be influenced by sales potential

 

Conclusion

If you need a legally recognised, accurate, and unbiased assessment, always opt for a professional property valuation in Hobart. Book a valuation today!