A property valuation and a real estate appraisal both assess property value, but they serve different purposes.
What is a Property Valuation?
A property valuation is a formal, independent assessment conducted by a licensed property valuer.
- Legally recognised for tax, mortgage, and legal purposes
- Based on in-depth research, market trends, and property analysis
- Unbiased – No sales influence or commission-based incentives
What is a Real Estate Appraisal?
A real estate appraisal is an estimated selling price provided by a real estate agent.
- Used to help set an asking price for selling a property
- Not legally binding or recognised for banking, legal, or tax purposes
- Can be influenced by sales tactics and market competition
Key Differences Between a Property Valuation and a Real Estate Appraisal
| Feature | Property Valuation | Real Estate Appraisal |
| Who Conducts It? | Licensed Property Valuer | Real Estate Agent |
| Legal Recognition | Recognised for banks, legal & tax purposes | Not legally binding |
| Purpose | Mortgage, tax, legal, & investment decisions | Selling & marketing strategy |
| Bias | 100% independent | Can be influenced by sales strategies |
When Do You Need a Property Valuation?
- Buying or selling property and need a true, independent value
- Applying for a mortgage or refinancing
- Settling legal matters like divorce or deceased estates
- Taxation purposes, such as capital gains tax (CGT) assessments
Conclusion
For a legally recognised, accurate, and unbiased assessment, always hire a professional property valuer. If you need a trusted property valuation service in NT, ACE Australian Valuers is here to help!
