Many homeowners, buyers, and investors misunderstand the role of property valuers in ACT, leading to confusion about how property valuations work and what factors influence property values. Some believe that valuers work for real estate agents, while others assume that valuations are purely opinion-based.
For those navigating the ACT property market, understanding the truth behind property valuation myths is essential for making informed real estate decisions.
This article debunks common myths about property valuers in ACT, clarifying their role, the valuation process, and why independent property assessments matter.
Myth 1: Property Valuers and Real Estate Agents Do the Same Thing
The Truth:
Property valuers and real estate agents serve different roles in the property industry:
- Property valuers provide independent, data-driven assessments based on regulated industry standards
- Real estate agents estimate a property’s potential selling price based on market demand and sales trends
A valuation report from a qualified property valuer is legally recognised, whereas an agent’s appraisal is not a formal property assessment.
Myth 2: A Property Valuation is the Same as a Market Appraisal
The Truth:
A valuation and a market appraisal are not the same.
- Property valuations are conducted by certified professionals and provide an objective assessment of market value
- Market appraisals are informal price estimates given by real estate agents to assist in selling a property
An appraisal cannot be used for legal, taxation, or mortgage purposes, while a valuation is required for financial and legal transactions.
Myth 3: Property Valuers Set the Market Price
The Truth:
Property valuers do not set property prices—they determine market value based on real estate data and regulated methodologies.
- Valuers analyse recent comparable sales, land value, property condition, and economic factors to arrive at an accurate valuation
- The market price is ultimately determined by buyer demand and supply conditions, not the valuer’s assessment
A valuation report provides factual data to support real estate transactions, but it does not dictate what a buyer is willing to pay.
Myth 4: All Property Valuations Provide the Same Results
The Truth:
Property valuations can vary based on the purpose of the valuation and the methodology used.
- A bank valuation is often more conservative, as lenders assess risk before approving loans
- A market valuation reflects what a property could sell for under current market conditions
- A government valuation (used for stamp duty or land tax) is based on tax assessment criteria, which may not align with market value
Each valuation serves a different purpose, meaning results may not always be identical.
Myth 5: Property Valuers Only Assess the Property Itself
The Truth:
While the condition of the property is important, valuers also consider external factors when assessing value, including:
- Recent comparable sales in the area
- Zoning regulations and land use policies
- Proximity to schools, transport, and commercial hubs
- Economic conditions and interest rates
- Future development projects and infrastructure improvements
A property valuation is based on a holistic analysis, not just the physical attributes of the property.
Myth 6: You Only Need a Property Valuation When Buying or Selling
The Truth:
Property valuations are essential for various financial and legal purposes, including:
- Mortgage applications and refinancing
- Investment property assessments
- Capital gains tax (CGT) and stamp duty calculations
- Probate, inheritance, and divorce settlements
- Insurance purposes and compensation claims
A valuation is not just about selling a home—it serves multiple financial, taxation, and legal functions.
Myth 7: Property Valuations Are Just an Opinion
The Truth:
Property valuations are not opinions—they are based on industry-approved methodologies and market analysis.
- Valuers follow strict industry guidelines set by the Australian Property Institute (API)
- The valuation process involves data analysis, property inspections, and economic research
- A valuation report is legally recognised and can be used for financial transactions, court cases, and investment planning
Unlike appraisals, which are often influenced by market trends and sales pressure, property valuations are backed by factual evidence.
Why Understanding Property Valuation Myths is Important
Believing in property valuation myths can lead to poor financial decisions and unrealistic expectations about a property’s worth. To ensure a fair and accurate property valuation, always:
- Engage a qualified and certified property valuer
- Understand the difference between a valuation, appraisal, and market price
- Be aware of how economic and market trends impact valuation outcomes
- Use property valuations for informed financial and legal decisions
Conclusion
Understanding the truth about property valuers in ACT helps homeowners, investors, and buyers make informed real estate decisions.
- Valuations are based on data and industry standards, not opinions
- Property valuers and real estate agents perform different roles in the property market
- Property valuations serve multiple legal and financial purposes beyond buying and selling
If you need a trusted and independent property valuation in ACT, consult a professional valuer today for an accurate, market-compliant assessment.
