Real Estate
14 August, 2025
Market appraisal versus valuation
UNDERSTANDING the distinction between market appraisal and property valuation is crucial for homeowners, buyers, and investors alike.
Each process serves different purposes and understanding these can provide a strategic advantage in navigating the local real estate scene.
A market appraisal is an informal process used to estimate the likely sale price of a property if it is placed on the market and it can be an important first step in your process if you’re thinking of selling or renovating.
Conducted by real estate agents, this process evaluates recent sales of comparable properties in the area to guide potential pricing.
It’s especially useful in a dynamic housing market where local demand can swiftly alter property values.
An appraisal should generally only ever be considered an estimate and real estate agents don’t usually charge for carrying them out.
In contrast, a property valuation is a formal process conducted by licensed valuers to establish an objective, legal valuation of a property’s worth.
Used for legal purposes such as wills and deceased estates, insurance assessments or family law matters.
Banks and other lenders also use property valuations in their risk assessment processes because they can provide a reasonable guide to a property’s value and whether it is suitable security for a loan.
It’s important to remember that without the ambition of property owners who align themselves with like-minded real estate agents who want to challenge the current market, prices will never change.
Just because every house in the neighbourhood has sold for the same price, doesn’t mean that yours is not worth more, and with the right sales and marketing strategy anything can happen, so it’s important to dream big.
