Property Valuation

A property valuation provides an objective, evidence based estimate of what a property is worth at a specific point in time. Unlike an agent appraisal, which reflects market demand and selling strategy, a valuation follows strict professional guidelines and is often required by banks for lending purposes. Valuers inspect the property in detail, compare recent sales, analyse land attributes, improvements, zoning and market trends, then issue a written report. Their figure is usually conservative because banks rely on it to manage their financial risk. Sellers should understand that a valuation is only one piece of the pricing puzzle and does not always reflect what an emotionally motivated buyer might pay. A strong sale campaign run by an experienced agent can outperform the valuation if competition is created. Property valuations are especially influential when refinancing, divorcing, resolving estate matters or settling disputes.

Practical Example

You are preparing to sell your home and your broker orders a valuation for refinancing purposes. The valuer inspects your property, takes measurements, reviews comparable sales and issues a report valuing it at $1.15 million. Your agent, however, believes the home will attract strong owner occupier demand due to its renovated kitchen, large backyard and school zone appeal. During the campaign, open homes are busy and three serious buyers emerge. Competitive tension drives the final sale price to $1.23 million which is significantly higher than the valuer’s conservative estimate. This shows how valuations provide a baseline, but skilled agents can exceed it through strong marketing and negotiation.