Professional valuer conducting a property valuation at a residential home

What Is Property Valuation and Why Does It Matter?

A property is often the most valuable asset you’ll own. Whether you’re preparing to sell, dealing with legal proceedings, or planning for retirement, understanding what your property is truly worth can make a world of difference. This is where property valuation comes into play.

In this article, we’ll break down what a property valuation is, when you need one, how it’s done, and what impacts the final figure. By the end, you’ll know exactly how a valuation supports confident, strategic decision-making.

 

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 Practising Valuer (CPV), who is accredited by the Australian Property Institute (API).

These reports are:

  • Independent and unbiased
  • Backed by comparable sales, local data, and valuation methodology
  • Legally compliant and accepted by banks, the courts, and the ATO
  • Used for a range of financial, legal, and planning purposes

Unlike a real estate appraisal (which is often free and sales-driven), a property valuation is detailed, documented, and regulated.

 

When Might You Need a Property Valuation?

There are many reasons to commission a valuation:

Selling or Buying a Property

Ensure you’re setting or accepting a price that reflects current market conditions.

Mortgage Applications and Refinancing

Banks require an independent valuation to determine loan-to-value ratios.

Divorce or Deceased Estate Settlements

Legal proceedings require objective assessments to divide assets fairly.

Capital Gains Tax (CGT) or Stamp Duty

Accurate valuations help you stay compliant with tax obligations when transferring or selling property.

SMSF or Trust Reporting

Property held within a self-managed super fund must be valued regularly for audit purposes.

Insurance or Development Feasibility

Ensure appropriate coverage or planning is based on true current or potential value.

 

What’s Included in a Property Valuation Report?

Each report is tailored to the valuation purpose, but generally includes:

  • Property description and photos
  • Title information and land zoning
  • Market overview of the area
  • Recent comparable sales
  • Methodology used (direct comparison, summation, etc.)
  • Final assessed value
  • Disclaimers and legal statements

The report is legally binding and holds weight with solicitors, lenders, and government authorities.

 

What Kinds of Properties Can Be Valued?

Property valuers can assess all types of real estate, including:

  • Residential homes and apartments
  • Commercial and industrial buildings
  • Vacant land and development sites
  • Investment or rental properties
  • Properties owned by SMSFs or family trusts
  • Rural or lifestyle properties

Whether it’s a suburban home, retail shopfront, or industrial warehouse, there’s a valuation type to match.

 

What Factors Affect Property Value?

Valuation Factor How It Impacts Value
Location Proximity to schools, shops, transport, and lifestyle amenities
Land Size & Zoning Development potential or subdivision possibility
Building Condition Renovations, age, and materials of construction
Recent Sales Local sales of similar properties set the benchmark
Market Demand Interest rates and buyer sentiment influence pricing

Valuers also consider planning overlays, flooding zones, easements, and neighbourhood character.

 

How Much Does a Property Valuation Cost in Australia?

Costs vary based on property type, complexity, and urgency:

Valuation Type Estimated Fee (AUD)
Residential (standard) $400 – $750
Commercial/Industrial $1,200 – $3,500+
Family Law/Deceased Estate $500 – $950
CGT/SMSF/Retrospective $500 – $1,000+

Always confirm whether GST is included and request a turnaround time.

 

Who Can Perform a Property Valuation?

Only a Certified Practising Valuer (CPV) is qualified to provide legally compliant property valuations. These professionals have:

  • API accreditation
  • University-level training in property economics or valuation
  • Years of supervised experience
  • Ongoing professional development and insurance coverage

Avoid relying on free appraisals from real estate agents if you need a legally or financially binding document.

 

Why a Valuation Is Worth the Investment

You might wonder, “Why pay for a valuation?” The answer is simple—property decisions come with serious consequences. Whether you’re disputing an inheritance, planning a sale, or applying for a mortgage, you need a valuation that:

  • Can stand up in court or to ATO scrutiny
  • Protects your financial interests
  • Gives you leverage during negotiations
  • Provides documentation you can rely on for years

 

Conclusion: Property Valuations That Empower Smart Decisions

A certified property valuation is more than just a number—it’s a professional, transparent assessment that helps you navigate life’s biggest financial decisions with clarity and confidence.

Don’t rely on guesswork. Whether you’re a homeowner, investor, accountant, or solicitor, a qualified valuer ensures you have the insights and evidence to move forward strategically.