What is a property valuation?
A property valuation is a formal, independent assessment of what a property is worth. It’s prepared by a licensed valuer using recent comparable sales, the property's condition, and the current market.
A valuation is different from a real estate agent's appraisal, and may be required by a lender or the Australian Taxation Office (ATO).
Here's what a valuation actually involves, how much one costs in 2026, and when the ATO expects you to get one.
When do you need a property valuation?
A formal valuation can be required in many situations, including:
- Taking out or refinancing a home loan: Lenders typically order their own valuation before approving a home loan to confirm the property is worth enough to act as security for the loan.
- Capital gains tax (CGT) calculations: The ATO can require a market valuation to work out the capital gain or loss on an investment property when one is transferred between related parties or changes from main residence to rental (or vice versa).
- Deceased estates and family law: Valuations are often needed to divide assets fairly after a death or separation.
How is a property valuation calculated?
When valuing a property, a valuer will look at a combination of factors, including:
- Land size and building size
- Number of bedrooms and bathrooms
- Fixtures, fittings, and other plant and equipment
- Building structure, age, and condition
- Location and proximity to amenities
- Local council zoning
- Recent comparable sales in the area
- Current market conditions
There are three common ways a valuer will calculate a property’s value:
Desktop valuation
Sometimes called an automated valuation, this type of valuation only considers data, weighing the property being valued against similar ones sold recently. These generally aren’t accepted by the ATO, courts, or state revenue offices.
Kerbside valuation
As the name suggests, this valuation is performed by assessing only the outside of a property, as well as factors like how many bedrooms and bathrooms it has.
Full inspection
A full inspection means a valuer looks at all the above, and also walk through the inside of the property to assess its value.
How much does a property valuation cost?
How much a property valuation costs can vary based on the type of property and its location.
As a general guide, a valuation typically costs in the vicinity of $200 to $700.
Lenders will often front the cost of a valuation when you’re applying for a new home loan or refinancing your existing loan, so it's worth checking with your bank or broker before paying for one privately.
Property valuation vs property appraisal: what's the difference?
A property valuation is entirely different from an appraisal, which is an informal, free estimate usually provided by a real estate agent.
An appraisal can be a useful starting point when working out what a house may be worth. However, it isn’t a legal document and may not be particularly accurate, particularly as agents often provide them when they want to win your listing.
A property valuation is prepared by a licensed, qualified valuer and carries legal weight.
