In the age of digital advancements, property valuation online has become a popular method, yet there are various types of valuations that play an essential part in real estate transactions.
But what’s the difference between an online valuation and an independent valuation?
An online valuation can be a helpful tool for the speed at which it’s generated. But the question remains: how accurate is it?
And how does it compare to an independent valuation prepared by a certified Property Valuer?
So, here’s what you need to know about the difference between these two valuations.
Understanding the Significance of Valuation of Property
When diving into the world of real estate, understanding the valuation of property is imperative. Whether you’re looking at online property valuations or independent property valuations, the core objective remains the same: to estimate property value.
The Importance of Accurate Property Appraisal
In cities like Sydney, house prices can be a significant indicator of the estimated value range of Australian property prices and trends. Therefore, whether you’re a buyer or a seller, you’d want to know your home value or house worth accurately.
Online tools, like a house value calculator, can provide quick estimates. However, for a more detailed and accurate property appraisal, especially considering the unique features and conditions of your property, it’s always best to consult with a certified valuer.
What Are Online Property Valuations?
As the name suggests, an online property valuation is a valuation of your property that you can do
online and from the comfort of your home.
They are more commonly referred to as online appraisals because they estimate the sale price of your property.
Most of the websites that offer an online property report offer it as a free and instant property value estimate. You simply input the property address, and the algorithm will compare recent sales statistics of similar properties using property data, recent comparable sales and property listings.
The benefit of an online valuation is that it’s relatively cheap and often a lot quicker than having property valuers come out to the property.
So, an online appraisal is a pretty useful tool in the early stages of the process to get an idea of how much you can expect to get from the sale of your property.
It’s also a quick and efficient way for buyers to get a rough idea of what an acceptable offer is during the negotiating stages of the real estate transaction.
However, this type of appraisal has its limitations and may not be accurate or reflective of your particular situation.
What Are the Limitations of Online Property Values
There are a few factors you need to consider when solely relying on an online valuation report:
- Informal report: An online appraisal is an informal valuation, meaning it’s not legally enforceable.
- Not detailed: The online valuation report won’t take into account any of the property’s physical features, such as any structural issues or if the plumbing and electrics need replacing.
- Possibility of an underestimation: Your property might also have unique features that can increase the value that an online appraisal won’t pick up on.
So, online property valuations can be pretty valuable when you’re deciding whether or not it’s currently worth it to sell your property.
But, once you get the ball rolling, the real estate transaction process can get long and complex, so you’ll want to get an accurate valuation from certified independent property valuers.
What Are Independent Property Valuations?
The purpose of an independent valuation is essentially the same as online valuations: to identify the approximate market value at that particular time.
However, the difference lies in how the valuation is completed.
Independent valuations are produced in report form after a valuer has completed a physical inspection of your property.
The property valuation report will generally provide you with more than just an approximate value; it’ll also cover:
- A detailed description of the property
- How the valuation was conducted
- Property market evidence of similar properties
- Valuation calculations
What’s more, an independent valuation is a legally enforceable report and is based on various factors assessed by a qualified and licensed Property Valuer. These factors include:
- Market conditions
- Recent sales in the same area;
- The size and building structure of the property
- The local council zoning
- Location and surrounding amenities
So, you’ll be able to use the valuation for a variety of purposes, including the following:
- Stamp duty purposes: To help in instances where you’re transferring property between owners and ownership entities, such as a trust
- Tax purposes: A market assessment valuation is used to calculate how much tax will be levied on your property
- Capital gain tax purposes: A capital gains tax valuation is required by the Australian Tax Office (ATO) to calculate the capital gain you may have made on the sale of your investment property.
For more on the different types of valuations, make sure to check out our ultimate guide.
It’s worth noting that a fair and accurate independent property valuation comes at a price.
Depending on the independent valuer’s rates, size, and value, you can expect most valuations to cost anything between $300 and $600.
How Can You Get a Property Valuation?
Qualified valuers are the only professionals who can offer independent property valuations.
At Duo Tax, our team of expert valuers have been certified as practising Property Valuers through the Australian Property Institute (API).
We provide a comprehensive suite of valuation services across Australia designed to deliver reliable and affordable valuation reports for your property.
What’s the difference between an online valuation and an independent one? It turns out there are a few:
- Online valuations give property value estimates using comparable properties. They offer ballpark figures for a general idea of the sale price.
- Independent valuers conduct physical inspections of properties. Their reports are detailed and legally enforceable. It provides more than just a basic value estimate.
- Buyers and sellers should seek valuation reports for accurate property value in the real estate market.
Thanks to our nationwide presence, our Duo Tax Property Valuers offer a full range of property valuation services across Australia so that we can deliver reliable and affordable valuation reports for your property.
Get in touch with one of our friendly API-certified valuers to discuss and organise your next property valuation today!
FAQs on Property Valuation
What Is Property Valuation?
Property valuation is the process of determining the actual value of a property based on various factors such as location, amenities, and current market trends. It can be done online or through a certified Property Valuer.
How to Get a Property Valuation?
To get a property valuation, you can either use an online home value estimator or hire a certified Property Valuer for a more detailed and accurate assessment. Companies like Duo Tax offer comprehensive valuation services across Australia.
How Long Does a Property Valuation Take?
The duration for a property valuation can vary. An online property appraisal or home value estimator can provide instant results. However, an independent valuation, which involves a physical inspection, can take anywhere from a few hours to a couple of days, depending on the property’s size and complexity.
How Do You Find Out How Much a House Is Sold For?
One can check recent sales statistics of similar properties using property data, recent comparable sales, and property listings. Some online platforms also provide this data as part of their property value estimate free services.
Can a Real Estate Agent Conduct a Property Valuation?
While a local real estate agent can provide a market appraisal or an estimated property value based on their knowledge and recent sales in the area, it’s not a formal valuation. A certified Property Valuer conducts formal property valuations. These valuations are comprehensive, legally enforceable, and consider a wide range of factors.
They are often required for official purposes such as financing, taxation, and legal disputes. In contrast, an agent’s appraisal is more of an informal estimate to help guide potential listing prices or inform buyers and sellers about the current market.
If you need a formal valuation for official purposes, it’s essential to engage a certified Property Valuer.
How Do You Calculate the Bank Valuation of Property?
Banks typically use a combination of online data and independent valuers to determine a property’s value. They consider recent sales in the area, the property’s condition, and other market factors. It’s always recommended to consult with your bank for their specific valuation process.
Who Is Best to Value Your Property?
While online tools like a house value calculator can provide a quick estimate, the most accurate property value estimator in Australia would be a certified and licensed Property Valuer. They conduct a thorough inspection and consider various factors that online tools might overlook.
What’s the Difference Between a Home Value and House Worth?
Both terms essentially refer to the estimated market value of a property. However, “home value” often pertains to online estimations, while “house worth” might be used more colloquially or in casual conversations.