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Understanding property valuations

Understanding property valuations

See the different types of property valuations and how they typically work.

There are several types of property valuations, including:

  • An automated price estimate
  • Appraisals and privately ordered valuations
  • Bank valuations

Automated price estimate

An automated price estimate is a way to quickly gauge a property’s estimated market price. It can be useful when starting to think about buying property in certain areas or getting an idea of what your current property might be worth. You can get estimate market prices1 through the CommBank property app. These estimates are not reviewed as part of home loan applications.

Appraisals and privately ordered valuations

Home owners and sellers can also approach a real estate agent for an appraisal, or a valuer for a privately ordered valuation of their property at any time. Privately ordered valuations are not used by banks when making lending decisions, but can provide a guide as to the estimated market value.

Typically, a valuer will look at things including:

  • Size of the property
  • Number and type of rooms
  • Fixtures and fittings
  • Areas for improvement
  • Location
  • Building structure and condition (including faults)
  • Standard of presentation and fit-out
  • Ease of access, such as good vehicle access and a garage
  • Planning and restrictions and local council zoning
  • Recent sales in the area and other market conditions

Bank valuations

Bank valuations are used to determine the loan-to-value ratio in a home loan application and will impact the amount that a bank is willing to lend. Bank valuations are for mortgage purposes only, so you shouldn’t rely on them for any other purpose.

Things you should know

1. Estimated market price is an estimate of a property’s potential market price based on external property data and CommBank’s own data. It is a guide only and does not take into account all factors that might affect a property’s value. It is not a bank valuation for credit assessment purposes.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Estimated market price is an estimate of a property’s potential market price based on external property data and CommBank’s own data. It is a guide only and does not take into account all factors that may affect a property’s value. It is not a Bank valuation for credit assessment purposes. Applications subject to credit approval. Full terms and conditions will be set out in any loan offer.