Many property owners confuse property valuations with real estate appraisals, but these serve different purposes.
What is a Property Valuation?
A property valuation is a formal, independent assessment of a property’s market value, conducted by a licensed property valuer.
Recognised for legal, financial, and tax purposes
Based on market trends, location, and structural condition
Unbiased – Not influenced by potential sales commissions
What is a Real Estate Appraisal?
A real estate appraisal is an estimate of a property’s value, provided by a real estate agent.
- Used for setting an asking price for sales.
- Not legally binding or suitable for tax or banking purposes.
- Influenced by market competition 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 |
When Do You Need a Property Valuation?
- Buying or selling property and need an accurate, independent assessment
- Applying for a mortgage or refinancing
- Settling legal matters like divorce or deceased estates
- Taxation purposes, such as capital gains tax (CGT) assessments
Conclusion
For an accurate, legally recognised property valuation, always hire a professional property valuer rather than relying on a real estate agent’s appraisal. If you need a trusted valuation service in Brisbane, contact Roo Valuers today!