Whether you’re refinancing your mortgage, managing an estate, or preparing for sale, knowing the true value of your property is essential. A professional property valuation provides an objective, legally recognised figure based on detailed analysis — helping you make informed financial and legal decisions.
This guide explores what property valuation involves, when you need one, how it’s conducted, and how it differs from a real estate appraisal.
What Is a Property Valuation?
A property valuation is a formal, written assessment of a property’s market value at a specific point in time. It’s completed by a certified property valuer — not a real estate agent — and is used in both personal and legal contexts.
The report is legally accepted by:
- Banks and mortgage lenders
- Courts and family law professionals
- The Australian Taxation Office (ATO)
- Financial advisers and accountants
- Insurance providers
- Self-managed super funds (SMSFs)
Valuers must be accredited as Certified Practising Valuers (CPVs) by the Australian Property Institute (API) or be members of the Royal Institution of Chartered Surveyors (RICS).
When Should You Get a Property Valuation?
Here are key scenarios when a certified valuation is necessary:
| Situation | Why It’s Important |
| Refinancing a loan | Determines borrowing capacity and risk for lenders |
| Buying or selling | Establishes fair value outside of auctions |
| Family law settlement | Provides court-accepted valuation of shared assets |
| Deceased estate and probate | Required for fair distribution and tax purposes |
| Capital Gains Tax (CGT) | Establishes cost base or gain for investment sales |
| SMSF compliance | ATO requires accurate annual valuations |
| Insurance review | Assesses true rebuild value |
Property Valuation vs Appraisal: Know the Difference
| Feature | Property Valuation | Real Estate Appraisal |
| Conducted by | Certified property valuer | Real estate agent |
| Legal recognition | ✅ Yes | ❌ No |
| Used for banking, tax, courts | ✅ Yes | ❌ No |
| Cost | $400–$1,200+ | Usually free |
| Basis of assessment | Data + methodology | Market sentiment or sales target |
Bottom line: If your purpose is legal, financial, or tax-related — a valuation is required.
How Does the Valuation Process Work?
Step 1: Booking and Purpose
You or your adviser contacts a valuer, providing:
- Property address
- Reason for the valuation (finance, legal, tax, etc.)
- Access details and required timeline
Step 2: Site Inspection
The valuer inspects the property to assess:
- Land size, shape, and zoning
- Building structure, layout, and condition
- Renovations and improvements
- Outdoor areas and extras (e.g., pool, garage)
- Location, amenities, and infrastructure
Step 3: Market Analysis
The valuer analyses:
- Recent comparable sales in your area
- Market demand and economic conditions
- Planning overlays and zoning changes
- Rental income potential (if applicable)
Step 4: Report Delivery
The final valuation report includes:
- Property details and inspection notes
- Market commentary and valuation method
- Comparable sales data
- Final assessed value
- Supporting documentation and photos
Typical turnaround: 2–5 business days.
Valuation Methods Used
| Method | Application |
| Direct Comparison | Most homes and residential units |
| Summation | Custom, rural, or heritage properties |
| Capitalisation of Income | Investment or commercial assets |
| Retrospective Valuation | Estate planning, CGT, or legal matters |
Each method is applied based on the property’s use, market type, and valuation purpose.
What Influences Property Value?
- Location (including zoning and proximity to services)
- Land size and potential for development
- Dwelling condition and quality of finishes
- Renovations, extensions, and upgrades
- Recent sales in the area
- Economic factors (interest rates, supply/demand)
How Much Does a Property Valuation Cost?
| Property Type | Estimated Fee (AUD) |
| Standard residential property | $400–$700 |
| Prestige, acreage, or unique | $800–$1,500+ |
| Commercial or investment | From $1,200 |
| Retrospective valuation | $600–$1,200+ |
Fees vary depending on complexity, location, and report detail. Some lenders cover valuation costs for refinancing — check before proceeding.
Choosing a Certified Property Valuer
- API (CPV) or RICS accreditation
- Experience in your property type and location
- Transparent quoting and turnaround
- Reports that meet legal, financial, or tax standards
- Clear communication and independence
Conclusion
A professional property valuation is a valuable asset for any property owner or investor in Australia. Whether you’re managing finances, resolving legal matters, or planning ahead, a certified valuation ensures your property decisions are based on facts — not estimates.
Don’t risk relying on opinion alone. For clarity, compliance, and confidence, get your property professionally valued.