There are various types of property valuations that all 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.
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.
There are a few factors you need to consider when solely relying on an online valuation report:
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.
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:
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:
So, you’ll be able to use the valuation for a variety of purposes, including:
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.
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 simply provide property value estimates of how much your property might be worth based on comparable properties in the area. They may offer some ballpark figures, which is helpful if you're looking to get more educated about what the sale price might look like.
Independent valuers, on the other hand, will conduct a physical inspection of your property before producing a detailed and legally enforceable report that can be used in a variety of circumstances, including:
So, it’s more than just a value estimate.
If you’re a buyer or seller, you’ll want to get your hands on a valuation report to help get an accurate estimate of the property’s value on 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!