Appraisal · Valuation
Appraisals: what it’s worth, and who may say so
An appraisal is a broad estimate of what a property might sell or rent for, and giving one is standard practice for a real estate agent. A valuation is something else: in Queensland, only a valuer registered under the Valuers Registration Act 1992 may legally value real property.
This guide, published by Dotto, follows those two words through property, tax, cultural gifts and insurance, using the pages of the bodies behind the rules. It never writes a price, an estimate or a value of its own.
General information, not legal, tax or financial advice. For a property question, your state’s consumer regulator is the place to check, such as Consumer Affairs Victoria; for tax, the ATO’s market valuation of assets page.
The difference, in a regulator’s words
The clearest line between the two words comes from Queensland’s property valuation regulator, the Valuers Registration Board of Queensland.
“An appraisal, on the other hand, provides a broad estimate of the potential sale price or rent applicable to a property.”
“This is not a property valuation and cannot be relied upon as a basis for a financial decision, legal or statutory requirement.”
Valuers Registration Board of Queensland, Difference between a Valuation and an Appraisal
The Board says a valuation made under that Act is an assessment of value that can be relied on for financial decisions and for legal or statutory requirements, and that a valuation includes an assessment of a rental value. That is Queensland’s rule, read from Queensland’s regulator. Each state sets its own, so this guide takes them one state at a time: Appraisal or valuation? sets the two side by side, and Who may value property covers where a valuer must be registered or licensed.
Which number is asked for, and when
Different questions call for different numbers. These are the moments the official pages name, each in the words of the body behind it.
| When it comes up | The number asked for | Who says so |
|---|---|---|
| Pricing a home with an agent in Victoria | The agent’s estimated selling price, which must be reasonable and must take into account the sale prices of the three most comparable properties. | Consumer Affairs Victoria. More in How agents must estimate a price. |
| Pricing a home with an agent in Queensland | When an agent suggests an asking price, a comparative market analysis of at least 3 similar properties sold within 5km in the last 6 months. | Queensland Office of Fair Trading. More in How agents must estimate a price. |
| A financial decision, or a legal or statutory requirement, about Queensland property | A valuation by a valuer registered under the Valuers Registration Act 1992. | Valuers Registration Board of Queensland. More in Who may value property. |
| Council rates and land tax in NSW | A land value overseen by the NSW Valuer General, which is the value of the land only, not of the home on it. | NSW Valuer General. More in Who may value property. |
| First renting out your home, or running a business from it, after 20 August 1996 | A market valuation of the home at the time you first start using it that way. | Australian Taxation Office. More in Valuations for tax at home. |
| Giving property to a deductible gift recipient, where the ATO values it at more than $5,000 | A valuation by the ATO itself, given on its Valuation certificate. | Australian Taxation Office. More in Valuations for tax at home. |
| Giving a cultural item under the Cultural Gifts Program | As a general rule, the average of two or more written valuations by valuers approved for the program. | Australian Taxation Office and the Office for the Arts. More in Valuing a cultural gift. |
| Choosing contents insurance | What each belonging would cost to replace at today’s prices, as a way to see how much cover you need. | ASIC’s Moneysmart. More in Jewellery, valuables and insurance. |
One home, or one ring, can sit in several rows at once, and each row asks its own question. That is this guide’s reading of the table above, not a rule from any one source.