Whether you’re buying your first home, selling an investment, or applying for a mortgage, knowing the true value of a property is essential. A professional property valuation gives you that insight—offering an independent, evidence-based estimate of what the property is really worth.
In this article, we break down what property valuation is, how it works in Australia, and why it’s your smartest starting point in any real estate journey.
What Is Property Valuation?
A property valuation is a formal estimate of a property’s market value, conducted by a qualified and independent valuer. In Australia, this person is usually a Certified Practising Valuer (CPV) accredited by the Australian Property Institute (API).
Valuations are used in a variety of situations, including:
- Buying or selling a property
- Refinancing or applying for a loan
- Resolving legal or family matters
- Calculating capital gains tax (CGT)
- Managing deceased estates
- Insurance and investment planning
Unlike real estate appraisals, which are informal estimates, a property valuation is legally recognised, objective, and based on data—not opinion.
Why Property Valuation Is So Important
Getting a valuation isn’t just about ticking a box—it’s a strategic move that offers real advantages:
| Scenario | How Valuation Helps |
| Buying | Avoid overpaying or making emotional decisions |
| Selling | Set a realistic price and support negotiations |
| Refinancing | Know your equity position and borrowing power |
| Legal disputes | Ensure fair division of assets |
| Tax reporting | Meet ATO compliance for CGT or inheritance |
| Investment analysis | Measure capital growth and rental returns |
How Property Valuations Are Conducted
A typical valuation process includes:
- Inspection
The valuer visits the property, noting size, layout, condition, improvements, and features. - Market Analysis
Recent comparable sales are reviewed, alongside zoning, land value, and suburb trends. - Valuation Methodology
The valuer applies one or more standard methods:- Direct Comparison (most common for residential)
- Summation (land value + depreciated building cost)
- Capitalisation of Income (for investment and commercial property)
- Report Generation
A formal valuation report is produced, typically within 2–5 business days.
What’s Included in a Property Valuation Report?
- Legal description and title details
- Property features (bedrooms, bathrooms, land size)
- Construction quality and condition
- Zoning, overlays, and land use potential
- Comparable recent sales
- Market commentary and risk analysis
- Final estimated market value
How Much Does a Property Valuation Cost in Australia?
| Type of Property | Estimated Cost (AUD) |
| Standard residential home | $400 – $700 |
| Apartment or strata unit | $350 – $600 |
| Probate or legal valuation | $700 – $1,200 |
| Commercial or investment | $1,200 – $4,000+ |
Some lenders include the cost in your home loan application—check with your bank or broker.
Tips for Getting the Most from Your Property Valuation
- Present the property well – tidy up, fix small issues, and ensure access to all areas
- Provide documentation – renovations, council approvals, or tenancy agreements
- Know your purpose – valuations for legal, tax, or lending purposes may require different formats
- Hire a certified expert – only work with a CPV accredited by the API
- Be transparent – disclosing known issues ensures the valuation reflects true value
Conclusion
In a fluctuating real estate market, clarity is everything. A professional property valuation empowers you to make informed decisions backed by data—not assumptions.
Whether you’re navigating your first purchase, restructuring your finances, or planning your next investment, starting with a valuation ensures you’re building from a place of knowledge, not guesswork.