Getting a property valuation: What you need to know

With your home likely to be your biggest financial asset, you might be wondering, “What’s my property worth?” A property valuation could help you estimate how much your property is worth. Find out how and when to get a property valuation.

Why you might need a property valuation

If you're applying for a home loan

A property valuation is an important step in the home loan application process that helps your lender calculate your Loan to Value Ratio (LVR). When you apply for a home loan, a property valuation will be required by your potential lender. This is sometimes referred to as a bank valuation and will be done on your behalf. Note that your lender will still need to complete their own property valuation even if you have one.

If you're refinancing

Refinancing is similar to applying for a home loan, so your lender will arrange to have a bank valuation done to assess how much your property is worth.  

When a property valuation could be helpful

Given how quickly the property market moves, if you’d like to have a better idea of your house value, organising a property valuation through a licensed valuer is one way to get an estimate. Remember, there will be a cost associated with these valuations.

Other times you might want to get your property valued include:

Before selling your property

If you’re thinking of selling your property, you could organise a property valuation report to help give you a clearer indication of how much your property is worth. Having a potential selling price in mind may help you decide whether to sell or not. It could also help you budget for your next home.

Before making a will

Arranging to get a property valuation report before making a will could give you a better understanding of what your assets are worth and help you in distributing your estate.

Before making other financial decisions

Keeping a close eye on the value of your home may help you make decisions about home insurance, home equity and your overall financial position.

The difference between property valuations and appraisals

Valuations and appraisals both give an indication of the value of a property but there are some key differences between them.

Real estate agents will often offer a free appraisal of your property based on their experience and recent sales in the area.

On the other hand, a property valuation conducted by an accredited valuer is a formal report that can be used for legal matters such as home loan applications. It is a more comprehensive valuation of your property that usually takes two to three days to complete and comes at a cost.

An appraisal has no legal standing and cannot be used for your home loan application. 

How can I find an accredited valuer?

If you have decided you need a property valuation, consider an independent certified valuer with no vested interests in the property being valued. The Australian Property Institute (API) runs an accreditation scheme for Certified Practicing Valuers (CPV). The relevant body in your state or territory will usually have a list of qualified valuers that you can choose from.

How much does it cost?

The exact cost of a property valuation varies depending on the location, accessibility, type, style and age of the property, as well as the valuer’s rates. Most valuations typically cost between $300 to $600. It may be worthwhile to get a written quote from the valuer before going ahead with the valuation.

Getting a property price prediction

If you don't need a formal property valuation but would like to get an idea of the value of your property, an ANZ Property Profile Report might help. It’s a free report that provides a price prediction for properties listed for sale and an estimated price range for properties that aren’t listed for sale. It is not as specific as a property valuation, but it may provide a useful indication as to what your property might be worth.

The property report includes:

• Prediction from Australia’s most accurate free property price predictor^disclaimer
  
• Comparable sales results in the area
• Sales and rental listings in the area
• Interesting suburb insights and trends
• Any recent sales history of the property

To sum up

A property valuation:

• gives you an indication of what your property is worth;
• will be arranged by your lender when applying for a home loan or refinancing;
• if conducted by a certified professional, can be used for legal matters; and 
• could be helpful when you are selling your property or making a will.