If you’re planning to buy, sell, refinance, or manage property in Australia, chances are you’ll need a property valuation at some stage.
Unlike a real estate appraisal, which is usually a sales pitch, a property valuation is a formal, unbiased assessment of your property’s market value. It’s legally recognised and used in everything from home loans to tax reporting.
This guide explains what property valuation involves, when to get one, who provides it, and how it helps you make smarter property decisions.
What Is a Property Valuation?
A property valuation is an independent, professional assessment of the market value of a property at a specific point in time.
It’s carried out by a Certified Practising Valuer (CPV) — a licensed professional accredited by the Australian Property Institute (API) or the Royal Institution of Chartered Surveyors (RICS).
The valuation is based on a detailed property inspection, local market data, and valuation methodology. It results in a formal written report accepted by:
- Banks and lenders
- Courts and legal representatives
- The ATO and government bodies
- Financial planners and accountants
Why Might You Need a Property Valuation?
Here are the most common scenarios:
| Purpose | Why It’s Needed |
| Refinancing or home loan | Banks use it to assess loan-to-value ratios |
| Buying or selling privately | Ensures fair pricing based on real value |
| Divorce or family law matters | Provides a neutral basis for asset division |
| Deceased estate or probate | Needed to value inherited property |
| Capital Gains Tax (CGT) | Helps establish cost base or assess gain |
| Self-Managed Super Funds (SMSFs) | For asset reporting and audit compliance |
| Insurance purposes | Determines rebuild/replacement value |
Valuation vs Appraisal: What’s the Difference?
| Feature | Property Valuation | Agent Appraisal |
| Provided by | Certified valuer (CPV/RICS) | Real estate agent |
| Legally recognised | ✅ Yes | ❌ No |
| Used for finance/tax/legal | ✅ Yes | ❌ No |
| Cost | $400–$700+ | Usually free |
| Objective | ✅ Independent | ❌ Often sales-motivated |
Key Point: If you need documentation for financial or legal matters, only a valuation will be accepted.
What Does the Valuation Process Involve?
Booking and Instruction
You or your adviser (bank, lawyer, accountant) hires a certified valuer. Make sure to clarify:
- The valuation’s purpose (finance, CGT, legal, etc.)
- Property address and access
- Expected delivery timeline
On-Site Inspection
The valuer will inspect the property, assessing:
- Land size and zoning
- Building structure, layout, and quality
- Condition of interior and exterior
- Renovations and improvements
- Outdoor features (e.g., sheds, pools, garages)
- Local surroundings and amenities
Market Analysis
After the inspection, the valuer researches:
- Recent comparable sales in the area
- Current supply and demand trends
- Rental yield (for investment properties)
- Planning regulations or overlays
Valuation Report
The final report includes:
- Property details and inspection notes
- Comparable sales data
- Valuation methodology used
- Market commentary
- Final assessed value
- Supporting photos and maps
Delivery timeframe: Usually 2–5 business days.
Valuation Methods Used
Valuers apply one or more of the following:
- Direct Comparison: Uses recent sales of similar properties
- Summation: Adds land value and cost of improvements, minus depreciation
- Capitalisation of Income: Used for rental or commercial properties
What Affects Property Value?
- Location: Proximity to shops, transport, schools, lifestyle zones
- Land size and zoning: Bigger blocks or development potential increase value
- Property condition: Modern or renovated homes score higher
- Market conditions: Interest rates, clearance rates, buyer activity
- Comparable sales: What similar properties have sold for recently
How Much Does a Property Valuation Cost?
| Type of Valuation | Typical Cost (AUD) |
| Standard residential home | $400–$700 |
| Prestige or rural property | $800–$1,500+ |
| Commercial or industrial | Custom quoted |
| Retrospective valuation | $600–$1,200+ (depends on historical data required) |
Some banks cover the fee for valuations ordered as part of a loan application.
Tips to Maximise Your Valuation Outcome
- Tidy and clean the property before inspection
- Fix small issues (e.g. dripping taps, peeling paint)
- Have paperwork ready — approvals, strata details, renovation receipts
- Allow access to all parts of the home and yard
- Highlight unique features (solar panels, new kitchen, landscaping)
Conclusion
A property valuation is more than a formality — it’s a powerful tool for legal certainty, financial planning, and confident real estate decisions. Whether you’re refinancing your mortgage, preparing for sale, or managing tax obligations, a certified valuer gives you an unbiased, evidence-based assessment you can rely on.
