Whether you’re buying, selling, refinancing, planning your estate, or navigating a legal dispute — you’ll likely come across the term property valuations. More than just a price tag, a valuation is an expert, objective statement of what a property is worth at a specific point in time. And in Australia, where property is often a person’s largest asset, that value matters.
In this guide, we break down what property valuations are, how they work, who needs them, and how certified valuers ensure you’re equipped with the information you need to make confident decisions.
What Is a Property Valuation?
A property valuation is a detailed, formal report that determines the market value of real estate — residential, commercial, or rural — using objective, standardised methodology. It is conducted by a qualified and independent valuer and is legally recognised by:
- Banks and lenders
- The Australian Taxation Office (ATO)
- Family law and estate courts
- Self-managed super funds (SMSFs)
- Financial institutions and insurance providers
Valuers in Australia must hold Certified Practising Valuer (CPV) status through the Australian Property Institute (API) or be members of the Royal Institution of Chartered Surveyors (RICS).
When Do You Need a Property Valuation?
| Use Case | Why It’s Important |
| Refinancing a home loan | Lenders require formal market value to assess loan-to-value ratio |
| Buying or selling a property | Assures both parties of a fair transaction price |
| Capital Gains Tax (CGT) | Helps calculate gains and avoid disputes with the ATO |
| Deceased estate (probate) | Ensures fair and accurate asset distribution |
| Family law and divorce | Courts require an independent value of shared assets |
| SMSF reporting and audits | Required annually for property-holding funds |
| Insurance reassessment | Ensures correct coverage for rebuild or replacement |
What’s Included in a Property Valuation Report?
- Full property description (address, land size, zoning)
- Site inspection findings (condition, improvements, layout)
- Comparable sales analysis from the local area
- Valuation method used (see below)
- Supporting photos, maps, and legal planning info
- Final assessed market value
- Signed declaration by a certified valuer
Common Valuation Methods in Australia
| Method | Suitable For |
| Direct Comparison | Residential homes and units |
| Summation Method | Renovated, heritage, or rural properties |
| Capitalisation of Income | Investment and rental income-producing properties |
| Discounted Cash Flow (DCF) | Long-term commercial or development assets |
| Retrospective Valuation | Probate, CGT, and legal assessments based on past value |
Valuers apply the method best suited to the purpose and property type.
How Long Does It Take?
- Residential valuation: 2–5 business days
- Commercial or complex site: 5–10 business days
- Retrospective or legal valuation: May require additional documentation and time
What Affects Property Valuation Outcomes?
- Recent sales of similar properties
- Land size, shape, and development potential
- Property condition and level of maintenance
- Market trends and economic climate
- Zoning, overlays, and local planning rules
- Rental yield (for investments)
- Infrastructure and suburb desirability
Even small differences — like off-street parking or proximity to public transport — can influence your final value.
Property Valuation vs Real Estate Appraisal
| Feature | Property Valuation | Agent Appraisal |
| Completed by | Certified valuer (API/RICS) | Licensed real estate agent |
| Legal and tax use | ✅ Accepted by ATO, courts, banks | ❌ Not legally binding |
| Price range or fixed value | Fixed market value | Broad price estimate |
| Used for finance, law | ✅ Yes | ❌ No |
Only certified property valuations are legally recognised in Australia.
How Much Do Property Valuations Cost?
| Property Type | Estimated Fee (AUD) |
| Standard residential home | $400–$700 |
| Prestige or heritage home | $800–$1,500 |
| Commercial/industrial | From $1,200 |
| Retrospective/legal use | $600–$1,200+ |
Some banks may cover the cost during refinancing — always check first.
Choosing the Right Property Valuer
- Look for CPV or RICS accreditation
- Check experience with your property type (e.g., strata, acreage, commercial)
- Request a clear, written quote
- Confirm their reports are accepted for your intended use (legal, tax, lending)
- Ensure the valuer understands your local area
Conclusion
Property valuations are a foundational part of sound property decisions. Whether you’re navigating the market, dealing with legal matters, or planning your financial future, a certified valuation provides the clarity and confidence you need to move forward.
Don’t leave one of your biggest assets to guesswork — get it professionally valued, and protect your financial position.
