While both property valuations and real estate appraisals help determine property value, they serve different purposes.
What is a Property Valuation?
A property valuation is a formal, independent assessment conducted by a licensed property valuer.
- Used for legal, financial, and tax purposes
- Based on comprehensive market analysis and property condition
- Unbiased and independent – no sales influence
What is a Real Estate Appraisal?
A real estate appraisal is an estimated market price provided by a real estate agent.
- Used for marketing and sales purposes
- Not legally binding or suitable for financial institutions
- Can be influenced by sales strategies and market trends
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 | Used 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 potential |
When Do You Need a Property Valuation?
- Applying for a mortgage or refinancing
- Settling legal matters like divorce or deceased estates
- Assessing investment opportunities
- Taxation purposes, such as capital gains tax (CGT) assessments
Conclusion
If you need an accurate, legally recognised property valuation, always hire a professional property valuer. For independent and reliable property valuations in Canberra, Crackpot Realty Co. is here to help!