Property valuation is sometimes misconstrued with an appraisal provided by a real estate agent. Typically a real estate agent’s appraisal will provide an indication of the property value based on opinion, recent property sales in the area etc; however the ability to use this information is largely limited to personal usage. Your Buyers’ agent should also be capable of providing equivalent appraisals based on their market knowledge, and be able to sort through property listings, weeding out appraisals that are overly optimistic.
True property valuations are carried out by an independent and qualified professional valuer, who has completed tertiary level qualifications in order to be licensed/registered by courts, lenders or state bodies to carry out an expert valuation. The property valuation provided by a professional valuer is considered a formal assessment with the outcomes able to be used as in legal proceedings by courts and widely used by lenders as a risk mitigation tool due to the qualifications and independence of qualified valuers.