A real estate agent conducts a property appraisal and determines the current market value of your home. This report is not legally binding, but it provides a good idea of the current market value of your property.

Local real estate agents are specialists at answering the question, 'how much is my property worth' due to the fact they live and breathe the local market. This is done by conducting a comparative market analysis, which looks at similar properties that have sold in the last 90 days, current competition, broad market trends, and your property's characteristics.

Property features: A full assessment of your property, including both the home and land size, condition of the property, key selling features, and the number of bedrooms and bathrooms.

Location: The location of your property, its proximity to local attractions, nearby amenities (such as schools), and potential buyer appeal.

Market Conditions: Analysis of current real estate market trends and comparable properties recently sold in the area.

As part of the real estate agent's report, you will receive a suggested price guide for your property as well as a detailed analysis of their findings.

Property valuations are detailed reports on a property's market value prepared by accredited valuers who have completed formal education and training.

It is necessary to carry out a valuation when determining the value of a deceased estate, working out family or partnership settlements, or applying for financing from a lender. A lender needs to ensure that the property is suitable as collateral for a loan and that the market value could cover the mortgage in the event of a forced sale.

Whether you're in the market to buy a property or looking to sell your current home, understanding its value can help you decide what you're prepared to spend on that property or how much it's worth now compared with when you first bought it. Property valuations can also identify the potential tax obligations associated with each individual sale, so it can be worthwhile understanding the types of property valuations out there.

The first thing valuers do is to look at comparable local sales based on land attributes, improvements, location and planning controls for an initial estimate. During their visit, they will also evaluate the following features of the property:

The number of bedrooms and land size of the property

An assessment of risks associated with environmental and market factors

Overall property condition

Fittings and fixtures

Building structure and condition

Fit out quality and architectural style of the property

The local council, zoning and planning restrictions

Aspect, topography, and block layout

Location and proximity to sought-after amenities



A report will be provided to the client within a few days after the valuer receives all the information. Since the valuation report doesn't take into account people's emotions, market knowledge, and other motivations, it will often be more conservative than a real estate appraisal.

A property valuation would most likely be required by lenders when you apply for a home loan. A property valuation is also necessary when you are dealing with a family or partnership settlement, need to know the value for capital gains tax, and in some cases if you are looking to insure your building.

Stamp duty: When transferring property between owners or ownership entities like trusts, property valuations can be helpful in determining stamp duty costs.

Capital gains valuations: The Australian Taxation Office (ATO) may require you to use a property valuation when calculating capital gains on the sale of your investment property.

Market assessment valuations: A fair market valuation will help you determine a reasonable selling price for your property in a competitive market.

Retrospective valuations: backdated or historical property valuations can be useful if you need to assess a property's value at a specific point in time.

Kerbside valuations: Typically faster and cheaper than full valuations, kerbside valuations can be handy when it's not necessary to examine the inside of the property.

Is there a reason why property appraisals and property valuations often differ in figures?

Property valuations and appraisals look at similar features of a property to find its market value, but real estate agents also consider the local market sentiment, including demand for an area and demand for similar properties.

Although buyer demand is intangible, real estate agents understand the local market and how much competition there may be for your property. It is this competition that can help achieve a higher sales price.

By virtue of their proximity to the local market, as well as the fact that they are likely to have an active buyer database for properties like yours, a real estate agent is able to provide you with a price guide that takes the current market sentiment into account.

Consequently, it is often more aligned with the market value of your property if you were to sell it at that time.

It is important to understand that both property valuations and property appraisals provide insight into your property and serve different purposes. Though a formal property valuation may not be necessary for your home, having semi-regular property appraisals to measure its performance makes good financial sense.