A property valuation and a real estate appraisal might seem similar, but they serve very different purposes.
What is a Property Valuation?
A property valuation is a formal, independent assessment conducted by a licensed property valuer.
- Legally recognised for tax, mortgage, and legal purposes
- Based on detailed market research and property analysis
- Unbiased and independent – Not influenced by potential sales commissions
When Do You Need a Property Valuation?
- Buying or selling a property
- Applying for a mortgage or refinancing
- Investment property analysis
- Capital gains tax or legal settlements
What is a Real Estate Appraisal?
A real estate appraisal is an estimate of a property’s selling price, provided by a real estate agent.
- Used for marketing and selling
- Not legally binding – Cannot be used for tax or banking applications
- Often influenced by sales strategies and market trends
Key Differences Between a Property Valuation and a Real Estate Appraisal
| Feature | Property Valuation | Real Estate Appraisal |
| Who Conducts It? | Licensed Property Valuer | Real Estate Agent |
| Legal Recognition | Recognised for banks, legal & tax purposes | Not legally binding |
| Purpose | Mortgage, tax, legal, & investment decisions | Selling & marketing strategy |
| Bias | 100% independent | May be influenced by sales potential |
Conclusion
If you need a legally recognised, accurate, and unbiased assessment, always opt for a professional property valuation. If you’re looking for a market price estimate for selling, a real estate agent’s appraisal might be sufficient.
For accurate and legally recognised property valuations, Ultra Properties is here to help!