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Top Mistakes to Avoid When Getting Your Property Valued

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Top Mistakes to Avoid When Getting Your Property Valued
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  • May 04, 2025

Top Mistakes to Avoid When Getting Your Property Valued

Meta title: Top 5 Common Mistakes to Avoid When Valuing Your Property | Expert Guide 

meta description: Learn the 5 most common property valuation mistakes and how to avoid them. Get accurate property valuations with professional guidance and avoid costly errors.

Top 5 Common Mistakes to Avoid When Valuing Your Property

Property valuation mistakes can cost you tens of thousands of dollars. Whether you're buying, selling, or refinancing, an inaccurate valuation directly impacts your financial outcome. A $50,000 valuation error isn't uncommon, and it often stems from preventable mistakes that property owners make when assessing value. Understanding what these mistakes are and how to avoid them puts you in control of your property's financial standing.

Mistake 1: Using Outdated Comparable Sales Data

One of the biggest valuation errors is relying on sales data that's months or even years old. Property markets move constantly, and comparable sales from six months ago may not reflect today's conditions. If you're valuing a property in a rapidly changing market, outdated data can skew your estimate by 10-15% or more.

Why Recent Data Matters

Markets are influenced by interest rate changes, economic conditions, and supply and demand shifts. A property that sold for $600,000 last year might be worth $650,000 today if the suburb has become more desirable. Conversely, it could be worth $550,000 if the market has cooled. Outdated comparables anchor your valuation to yesterday's market, not today's reality. The Australian Property Institute (API) emphasises that valuers must use current market evidence to produce defensible valuations.

How to Source Current Comparables

Always source comparable sales from the past three to six months. Use property databases like SoldPrice or Domain to find recent sales of similar properties in your area. Look for properties that sold, not just those listed (which haven't been tested by the market). Prioritise the most recent sales more heavily than older data when making your assessment.

Mistake 2: Comparing Apples to Oranges

Comparing your property to genuinely different properties is a fast track to an inaccurate valuation. A four-bedroom house with a pool isn't comparable to a three-bedroom house without a pool, even if they're on the same street. These differences compound quickly and can shift your valuation by $50,000 or more.

What Makes Properties Comparable

True comparables must match on location (same suburb or immediately adjacent), property type (house to house, not house to unit), size (similar land area and floor space), age and condition, and key features (pools, renovations, parking). A property with a recently renovated kitchen in premium condition isn't comparable to one with original 1980s fixtures requiring work. The more factors that differ, the more subjective your adjustment becomes.

The Danger of Ignoring Differences

When you ignore differences, you're essentially guessing at adjustment values. Is a renovated kitchen worth $20,000 or $40,000? Does that extra bedroom add $15,000 or $30,000? These guesses compound, and suddenly your valuation is unreliable. Professional valuers make detailed adjustments supported by market evidence, but DIY valuations often skip this step entirely, leading to significant errors.

Mistake 3: Ignoring Current Market Trends

A property's value depends heavily on what's happening in the broader market right now. Ignoring interest rate movements, economic conditions, and local development can lead you to dramatically overvalue or undervalue your property. A suburb experiencing infrastructure investment (new train line, shopping centre) will show different valuation trends than one with declining amenities.

How Markets Change Your Property's Value

Property values are influenced by interest rates, employment rates, population growth, and available housing supply. When interest rates rise, borrowing capacity decreases and demand softens, potentially pushing prices down. When a new business hub opens nearby, demand increases and values typically rise. These aren't minor adjustments. A major market shift can swing property values by 15-20% in either direction.

Factors That Shift Local Markets

Monitor local news, council planning documents, and economic indicators for your area. New infrastructure, zoning changes, school ratings, and crime statistics all influence value. For capital gains tax valuations, understanding market conditions at the time of the CGT event is essential for ATO compliance. The ATO provides guidance on property valuations for tax purposes.

Mistake 4: Letting Emotion Override Objectivity

One of the most expensive mistakes is overestimating your property's value because you're emotionally attached to it. You love the garden you spent five years cultivating, the kitchen renovation you completed, or the memories made in the home. Unfortunately, the market doesn't value these emotional attachments. A buyer walking through sees a property's functional features and market comparables, not your sentimental story.

The Cost of Overvaluing Your Property

If you overestimate your property's value, it won't sell at the inflated price. You'll either hold the property unsold while competing properties move, or you'll reduce the asking price anyway. For refinancing, an overvalued estimate means the bank's valuation will come in lower, creating a valuation shortfall. When buying, emotional attachment leads to overpaying, purchasing at prices above what the market will eventually show as fair value.

How to Assess Property Value Objectively

Step back and assess your property as an external investor would. Look at its condition realistically. Yes, you renovated the kitchen beautifully, but would a buyer agree it's worth $40,000? Would they pay $15,000 extra for your garden, or would they see it as maintenance requiring attention? Be honest about wear and tear. Property valuers assess homes "as is," not as the owner hopes they'll be perceived.

Mistake 5: Relying on Unaccredited Valuers or Agents

Real estate agents provide appraisals or estimates, not valuations. These appraisals are educated guesses aimed at getting the listing, not objective assessments. Agents have incentives to keep listed prices high to attract sellers, even when market reality suggests lower values. Unaccredited valuers may use inconsistent methodologies and lack professional accountability.

Valuer vs Real Estate Agent Appraisals

A certified property valuer is accredited by the Australian Property Institute or similar professional body, holds tertiary qualifications, and is legally responsible for their assessments. Real estate agents are salespeople. Their appraisals aren't legally binding and aren't based on standardised professional methodologies. For pre-purchase valuations or any formal application, you need a certified valuer, not an agent's estimate.

Why Credentials Matter

Professional valuers follow standardised approaches, maintain independence, and can defend their assessments if challenged. They have insurance and professional standing to protect. When your property's value has major financial implications, working with accredited professionals ensures your valuation is defensible and accurate. This matters whether you're applying for investment property valuations or seeking valuations for personal financial decisions.

Getting It Right: Professional Valuation is Your Safety Net

The cost of a professional valuation ($600-$1,200 depending on property size) is trivial compared to the financial impact of getting the value wrong. Whether you're buying, selling, refinancing, or investing, an accurate valuation protects you. It prevents overpaying, ensures you sell at fair market value, and gives you confidence in major financial decisions.

For property investment, ASIC MoneySmart provides guidance on property investment decisions. When valuations involve tax implications, the ATO requires professional, defensible assessments that meet their standards for accuracy.


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AAP Valuers
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AAP Valuers

Alliance Australia Property provides expert property valuation services across Australia. Our certified valuers specialize in residential, commercial, and rural property assessments.

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