Property Valuation vs Real Estate Appraisal

A real estate appraisal is an agent’s estimate of the price your property is likely to sell for, usually free and given while the agent is competing for your listing. A property valuation is an independent valuer’s opinion of its market value at a stated date, for a stated purpose, with the evidence and reasoning set out in a signed report.

Both are opinions about price, and they are often close. The difference is who prepares them, why, and who can rely on them. For deciding whether to sell, or which agent to use, an appraisal is usually enough. For tax, duty, super, a separation, an estate or a dispute, whoever checks the figure may want independent evidence of value, and a valuation is often the clearest way to provide it.

What is the difference between a valuation and an appraisal?

Neither is “legally binding”. Some websites say a valuation is, but it is not. A valuation is an expert opinion, and a revenue office, the ATO, the other side in a dispute or a court can test it and prefer other evidence. What gives a valuation its weight is the process behind it: the evidence, the method and the valuer’s independence.

Is an agent’s appraisal the same as market value?

Not quite. An appraisal estimates what your property might sell for in the campaign the agent is proposing, with their marketing, over the coming weeks. Market value is a defined idea: the most probable price on a given date between a willing buyer and a willing seller, both informed and dealing at arm’s length after proper marketing, with neither under pressure. Market value vs sale price explains the definition and why the two can differ.

An agent also has a commercial interest. Agents compete for listings, and a confident figure can help win one. That does not make appraisals wrong, and many agents know their local market very well. It means an appraisal is a sales tool, not independent evidence.

Are real estate appraisals regulated?

Yes, but the rules control how agents quote prices when they sell, not whether an estimate is good enough for tax or legal use. New South Wales and Victoria both have underquoting laws. They change from time to time, so check the current rules before you sell. At October 2026:

• New South Wales. The agent must record an estimated selling price in the agency agreement, base it on factors such as recent comparable sales, and give you the evidence for it. A price range can be no more than 10 per cent wide, and advertising must not use “offers over” or similar wording.
• Victoria. The estimate must be reasonable and take into account the three most comparable sales, or one or two if that is all there are. A range can be no more than 10 per cent wide, and the agent cannot advertise below the estimate, your asking price or a written offer you rejected. From 1 October 2026 the Statement of Information became the Property Price Statement, and for auctions and fixed-date sales held from 16 October 2026 the reserve price must be published at least 7 days before the sale.
• Everywhere. Agents must not engage in misleading or deceptive conduct under the Australian Consumer Law.

These rules make appraisals more honest. They do not turn an appraisal into a valuation.

Who can do a property valuation?

Who can value depends on the purpose and on where the property is, because the rules differ between states and territories. New South Wales repealed the Valuers Act 2003, which required property valuers to be registered, with effect from 1 March 2016.

The Australian Property Institute certifies Certified Practising Valuers (CPV), the Australian Valuers Institute also certifies valuers, and the Royal Institution of Chartered Surveyors has a Registered Valuer designation. Revenue NSW’s ruling on evidence of value for duty, for example, treats certain members of these three bodies as suitably qualified valuers. Members are bound by valuation standards and codes of conduct, and can be disciplined for breaching them.

When is an appraisal good enough?

• Deciding whether to sell, and roughly when.
• Choosing between agents, by comparing their estimates and the sales they rely on.
• Getting a feel for your equity before you speak to a lender or broker.
• Keeping an eye on how your local market is moving.

In each case you are the only person relying on the figure, and nothing turns on it being exactly right.

When is a valuation the better choice?

When someone other than you will check the figure, and money or rights depend on it:

• Capital gains tax. The ATO’s guide, Market valuation for tax purposes, says the acceptability of a valuation usually depends on the process followed rather than who did it, and that a report by a suitably qualified professional following industry standards is considered more reliable. The onus to support the value stays with you. See CGT valuations.
• Stamp duty on a transfer within a family or between entities. Duty is generally charged on the higher of the price and the market value. In New South Wales, where the evidence shows the value is higher than the price, Revenue NSW’s published ruling asks for a comprehensive valuation of full market value (or a Valuer General valuation) and says brief market appraisals and estimates that do not indicate a full inspection are not acceptable.
• Self-managed super funds. Property must be reported at market value every year, and the ATO says trustees should consider a qualified independent valuer where a property is a large share of the fund or complex to value. See SMSF valuations.
• Separation. If you cannot agree on a value, an independent valuation is the usual way through, and in family law cases the court’s rules favour a single expert where practicable. See family law valuations.
• Estates. A value at the date of death, which an appraisal of today’s market does not give you. See date of death valuations.
• Any past date. Agents appraise the current market. A valuer can value property as at a past date using the sales evidence of the time. See retrospective valuations.

What about online estimates and bank valuations?

Online estimates on property portals and banking apps come from automated valuation models: software that works from sales records and property data. They never see the property, so they cannot allow for its condition, a renovation or a poor outlook. They are a starting point, not evidence.

A bank valuation assesses the property as security for a loan, and it is prepared for the lender, not for you. Valuations for lending are ordered by the lender, and we do not provide them. If you need a valuation for a loan, ask your lender or broker.

Why do an appraisal and a valuation give different numbers?

• They answer different questions: the likely selling price in a particular campaign, against market value on a particular date.
• An appraisal looks ahead to the coming weeks. A valuation relies on sales that have already happened, so in a fast-rising market it can trail the agent’s figure, and in a falling market it can sit above it.
• A valuer adjusts each comparable sale for its differences from your property and shows the workings. An appraisal rarely does.
• A valuer has no stake in the result. An agent is competing for your listing.

How much does each cost?

An agent’s appraisal is usually free, because the agent hopes to sell the property. A valuation is paid for, and the fee depends on the property and the purpose. How much a property valuation costs explains what drives the fee. Our fees include GST:

Stamp duty and related-party transfer valuations are quoted individually: contact us with the details.

You can request a valuation online in a few minutes. A request is not a booking: we confirm the valuer’s name, the fee and the timing in writing, and nothing is booked or charged until you accept.