Whether you're buying, refinancing or working out your usable equity, you need a realistic read on what a property is worth. There are three ways to get one, and they're not equally reliable.
Three ways to estimate value
- Online valuation tools — quick estimates from algorithms using recent sales and property attributes. Useful as a starting point, not gospel.
- An agent appraisal — a real estate agent's opinion of the likely selling range, usually free. Helpful, but it's an opinion and isn't legally binding.
- A certified valuation — a formal inspection and report by a qualified valuer, usually for a fee of a few hundred dollars. This is the one lenders and courts rely on.
The comparable-sales method
Most estimates come back to recent comparable sales. The approach:
- Find recent sales of similar properties nearby — within about a kilometre in cities, wider in regional areas.
- Compare them on location, land and house size, rooms and quality.
- Judge which comparables are superior or inferior to the subject property, and adjust.
- Factor in the market right now — sales older than about three months may not reflect current conditions.
What moves a property's value
Location, land size, house size and layout, condition and features, council zoning, heritage status, accessibility and any planning restrictions all feed into the number.
Appraisal vs valuation
An appraisal is an agent's informal estimate of selling price. A valuation is a formal, documented assessment by a certified valuer — the kind required for settlement, loan approval, working out equity, disputes or deceased estates.
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Book a Clarity Call — It's FreeCommon questions
What's the difference between an appraisal and a valuation?
An appraisal is a real estate agent's informal (usually free) opinion of a likely selling price. A valuation is a formal, legally recognised report by a certified valuer, used for loans, settlement and disputes.
How do you work out a property's market value?
The most reliable method is comparable sales: find recent sales of similar nearby properties, adjust for differences in size, quality and location, and factor in current market conditions. Online tools and agent appraisals can give a quick read.
How much does a property valuation cost?
A certified valuation typically costs a few hundred dollars. Online estimates are free, and agent appraisals are usually free too — but neither carries the formal standing of a certified valuation.
This article is general information only and doesn't take your personal circumstances into account. It isn't financial, tax or investment advice. Tax rules and lender policies change — confirm your position with a licensed professional or the ATO before making decisions.
