If you’re buying, selling, or refinancing a home, you’ve probably come across the term property valuation. But what does it actually mean? And how is it different from a real estate appraisal?
This guide explains the basics of property valuation in Australia—why it matters, how it’s done, and when you might need one.
What Is Property Valuation?
A property valuation is a formal, professional estimate of a property’s market value at a specific point in time. It is conducted by a Certified Practising Valuer (CPV)—an independent professional registered with the Australian Property Institute (API).
Unlike a real estate agent’s appraisal (which is typically used to help set a sale price), a property valuation is:
- Legally recognised
- Required by banks, courts, and government agencies
- Based on strict valuation methodology and evidence
- Objective and independent of any selling intent
When Do You Need a Property Valuation?
There are many situations where a formal property valuation is required:
| Situation | Why You Need a Valuation |
| Buying or selling property | To assess fair market value |
| Refinancing your mortgage | Required by lenders to confirm property value |
| Legal proceedings | For divorce, probate, or dispute resolution |
| Capital gains tax (CGT) | For accurate reporting and ATO compliance |
| Insurance purposes | To estimate the cost to rebuild |
| Investment strategy | To track growth and evaluate equity |
What Factors Affect Property Valuation?
Valuers consider a wide range of factors to determine a property’s value, including:
- Location: Suburb, street, proximity to schools and amenities
- Land size: Larger blocks or corner lots may increase value
- Property condition: Quality of construction, renovations, age
- Market trends: Supply, demand, and comparable recent sales
- Zoning and planning: Potential for development or restrictions
- External risks: Flood zones, bushfire overlays, or noise exposure
Valuation vs Appraisal: What’s the Difference?
| Feature | Property Valuation | Real Estate Appraisal |
| Conducted by | Certified Valuer (CPV) | Licensed Real Estate Agent |
| Purpose | Legal, financial, tax | Sales and marketing |
| Legally binding | Yes | No |
| Used by | Banks, ATO, courts | Buyers and sellers |
| Based on | Market data, zoning, methodology | Market knowledge and current trends |
| Cost | Paid service (usually $400–$700) | Often free (as part of selling strategy) |
What’s in a Valuation Report?
A full property valuation report will typically include:
- Legal property details and site description
- Floor plan and improvements
- Market overview and suburb trends
- Recent comparable sales
- Risk factors (e.g., planning restrictions)
- Final estimated value and methodology used
The report is usually delivered within 2–5 business days after the inspection.
How Much Does Property Valuation Cost in Australia?
| Property Type | Estimated Fee (AUD) |
| Residential home | $400 – $700 |
| Unit or apartment | $350 – $600 |
| Legal/probate report | $700 – $1,200 |
| Commercial property | $1,500 – $4,000+ |
Some lenders cover valuation costs during a refinance or loan application—always check with your broker.
How to Prepare for a Property Valuation
You don’t need to stage your home, but a little preparation helps:
- Clean the interior and garden
- Provide renovation records or building approvals
- Make all areas accessible (e.g. garage, under-house storage)
- Highlight upgrades like solar panels or new kitchens
- Be honest about known issues (e.g. leaks, pest problems)
Conclusion
A property valuation isn’t just a number—it’s a professional tool that helps you make smarter decisions about your most valuable asset. Whether you’re planning to buy, sell, refinance, or simply want to know where you stand, a formal valuation provides independent, accurate insight.
Always choose a qualified, local Certified Practising Valuer, and ensure the report suits your needs—whether for legal, financial, or personal planning.
