Whether you’re preparing to sell, applying for a home loan, or simply curious about your property’s current market value, a professional house valuation can provide clarity and peace of mind. In Australia’s competitive and ever-changing real estate market, understanding what your home is really worth is a smart move for any homeowner.
In this guide, we break down the house valuation process, explain what affects your home’s value, and explore how to get a reliable, evidence-based assessment.
What Is a House Valuation?
A house valuation is a formal assessment of your home’s current market value, conducted by a qualified valuer. It’s different from a real estate agent’s appraisal, which is typically used to estimate sale price.
A certified valuation is:
- Conducted by a Certified Practising Valuer (CPV)
- Legally recognised and often used by banks, courts, and tax agencies
- Based on data, comparable sales, zoning laws, and professional judgement
- Useful for both residential homes and investment properties
When Do You Need a House Valuation?
There are several key scenarios where an official house valuation is not only helpful—it’s often essential:
| Situation | Why It Matters |
| Selling your home | To set a realistic asking price based on true value |
| Refinancing your mortgage | Lenders use it to assess equity |
| Legal proceedings or separation | Courts require a neutral valuation |
| Capital gains or land tax | The ATO uses the valuation for compliance |
| Insurance purposes | To determine rebuild or replacement cost |
What Affects a House’s Value?
Valuers consider a wide range of property-specific and market-based factors when determining the value of a house:
Location
- Proximity to schools, parks, shops, transport
- Suburb desirability and recent sales trends
Land Size & Zoning
- Larger blocks or those with subdivision potential often attract a premium
House Condition
- Age, materials, maintenance level, and overall presentation
- Renovations or extensions (with or without permits)
Improvements & Features
- Pools, solar panels, outdoor entertaining areas, modern kitchens or bathrooms
- Security systems, off-street parking, ducted air conditioning
Market Conditions
- Interest rates, economic outlook, and seasonal trends
- Supply and demand dynamics in your area
How Is House Valuation Calculated?
The valuer chooses the most appropriate method depending on the property type and location:
Direct Comparison
- Compares your home to recently sold similar properties nearby
- Most commonly used for houses in suburban or metro areas
Summation Method
- Values the land separately, then adds the depreciated value of the building and improvements
- Ideal for homes with fewer recent comparable sales
Capitalisation (for Rentals)
- If the house is leased, income and yield may be used to assess value
How Much Does a House Valuation Cost in Australia?
Costs vary depending on the type of valuation and location:
| Type of Valuation | Cost Estimate (AUD) |
| Standard House Valuation | $400 – $700 |
| Legal/Probate Valuation | $700 – $1,200 |
| Urgent/Expedited Report | Additional fee |
Some banks cover the cost as part of loan processing, while others may pass the cost on to you.
What’s Included in a Valuation Report?
A full house valuation report includes:
- Legal property description
- Land dimensions and zoning information
- Physical condition and improvements
- Recent comparable sales data
- Market commentary and risk analysis
- Final assessed market value
- Notes on valuation method and assumptions
How to Prepare for a House Valuation
Give your property the best chance of a fair and favourable result by:
- Tidying both inside and outside
- Fixing obvious defects (leaks, cracked tiles, paintwork)
- Making all rooms accessible
Providing renovation receipts or council approvals - Pointing out hidden features (e.g. underfloor heating, upgraded insulation)
Conclusion
In Australia’s property market, knowing your home’s value gives you a powerful advantage—whether you’re planning to sell, borrow, invest, or protect your wealth. A certified house valuation offers more than just a number—it’s an expert snapshot of your asset’s true position in the market.
For accurate, up-to-date, and legally compliant reporting, always engage a qualified property valuer with experience in your local area. With professional guidance, you’ll be ready to make informed decisions at every stage of your property journey.