Free property valuations – can you avoid an extra fee?

How much does a property valuation cost?

A property valuation from an independent valuer can vary. Ray White puts the cost of a valuation fee between $300 and $500, but it could cost more and sometimes, a "desktop valuation" can be performed for much less.

Lenders will often charge you as a valuation fee as part of the application process. But, many lenders will cover the cost for you.

Can I get a free property valuation?

It is possible to get a free property valuation. Although private property valuations usually cost a few hundred dollars, many lenders will waive or cover the fee. Be sure to check the fees and charges for each lender or ask your mortgage broker.

There are also property sites offering free online price estimates. Although these estimates can be very helpful when researching property prices, they are not a replacement for bank valuations. Banks will generally still need to complete their own valuation when you apply for a home loan, because they need a comprehensive property report.

Sites that offer free property reports:

If you're looking to get a rough idea of your property value you may not need a full valuation. Here are some sites you can use to get a free property report:

• OpenAgent
• ANZ Property Profile Report
• CommBank Property Value report
• NAB Property Insights
• Westpac Property Report
• My Property Value
• Realestate.com.au

Why do you need a property valuation?

There are a few reasons why you may need a property valuation.

1. Buying a home. If you are looking at purchasing a property then you may source an independent valuer to determine the value of the property. The report they provide can give insight into the good and bad aspects of the property and help you decide how much you should offer the sellers of the property.
2. Selling a home. When you are selling your home it is important to understand what your property is worth. The value will help you determine the right listing price to attract potential buyers and help you to maximise your profits.
3. Obtaining a loan. When you are trying to obtain or refinance a loan for a property your lender will organise a property valuation so they can determine the value of a loan.

What you should know about free property valuations

When obtaining a loan a bank prefers to use their own valuer to ensure their strict guidelines are met. If you choose to obtain your own property valuation from an independent valuer then the bank can still choose to perform their own valuation.

What factors influence a property value?

Several things can influence how a property is valued. These include:

• Location
• Supply and demand
• Interest rates
• The economy
• Property size and features

Learn more about what influences a property valuation.

Getting more than one valuation

While many loans offer free valuations, this usually only covers the first valuation. If you need to get another valuation within the same loan for any reason, this often won't be covered.

Also, bear in mind that homes in regional areas might cost more to value as they may be more difficult for valuers to get to. In some cases, these homes may attract a valuation charge even if valuations are usually free to other borrowers.

What's the difference between a property valuation and market appraisal?

A property valuation is performed on behalf of the lender by a professional valuer. It will usually be conservative, meaning it may be lower than the actual price the property could sell for if listed on the market.

This is because the valuation is used to determine the minimum price the house could be sold for. The lender requires a valuation to measure their risk - they want to know that if you stop making repayments for any reason, they can sell the property and recover their loan amount. This is why valuations are usually quite conservative.

On the other hand, a market appraisal is performed by a real estate agent who is acting on behalf of the vendor. The estate agent is using the same factors to determine value, but they are looking to get the highest possible price for a property. This is usually a free service.

Learn more about bank valuations vs market valuations.

Frequently Asked Questions

• Can you get a free valuation?

  Yes, you can get a free property valuation through various online tools offered by banks, real estate websites or other sources listed above. These valuations give you an estimate based on recent sales data and market trends.

• How can I estimate the value of a property?

  You can estimate the value of a property by using online valuation tools, checking recent sale prices of similar properties in the area, and consulting with real estate agents for a market appraisal.

• What is the most accurate property value estimator?

  The most accurate property value estimator is usually a professional valuation conducted by a qualified valuer. These usually have a cost of around $500, although if you arrange a valuation through a bank when you're refinancing, the bank sometimes covers this cost. For quick estimates, online tools from banks or real estate websites like CoreLogic and RP Data are useful.

• How much is a basic valuation fee?

  A basic property valuation fee in Australia typically ranges from $300 to $600, depending on the location and type of property, and whether it's a desktop or physical inspection. Some lenders may cover this cost as part of their home loan services.

• How much does it cost to get a house valuation in Australia?

  A house valuation in Australia generally costs between $300 and $600. depending on the location and type of property, and whether it's a desktop or physical inspection. Again, some lenders may cover this cost as part of their home loan services.

• Who pays for valuation report?

  This depends on the lender. Some lenders will cover the full cost as part of your refinancing home loan application. Other lenders will pass this cost onto you as the borrower.

To make sure you get accurate and helpful information, this guide has been edited by Rebecca Pike as part of our fact-checking process.

Written by

Richard Whitten

Senior Money Editor

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Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

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