“Valuation”, “appraisal” and “estimate” get used interchangeably, but they are three different things — and the difference matters the moment your number has to stand up to someone else. The short version: only a valuation is a signed, independent professional opinion that a qualified valuer takes responsibility for. An appraisal and an online estimate are not.
The three, side by side#
| Independent valuation | Agent’s appraisal / CMA | Online estimate (AVM) | |
|---|---|---|---|
| Who produces it | A qualified valuer | A real-estate agent | An automated algorithm |
| Signed & dated | Yes | No | No |
| Stated methodology & comparables | Yes | Sometimes, informally | No |
| Professional responsibility | Yes — the valuer stands behind it | No | No |
| Any interest in the number | Independent — no stake | May want to win your listing | None, and no accountability |
| Typical cost | A professional fee | Usually free | Usually free |
| Best used for | Tax, legal, lending, disputes, records | Pricing a listing | A rough, private ballpark |
Independent valuation#
A valuation is a qualified valuer’s signed opinion of market value, built on comparable sales evidence and a clear, stated methodology, as at a specific date. The valuer is independent — no stake in whether or how you sell — and takes professional responsibility for the figure. That’s what makes it evidence rather than an opinion.
A real-estate agent’s appraisal (CMA)#
An appraisal, or comparative market analysis, is an agent’s opinion of what your property might sell for. It’s a normal, useful tool for pricing a listing — but it’s free partly because it’s designed to win your business, so appraisals can run high (to secure the listing) or low (to sell quickly). There’s no signature and no professional liability attached to the number.
An online estimate (AVM)#
An automated valuation model produces a number from data alone — no valuer, no inspection, no methodology statement, no signature. It’s fine for idle curiosity or a rough ballpark, but it’s the weakest form of evidence and no one stands behind it.
When each is appropriate#
- Pricing a home you’re about to list: an agent’s appraisal is the normal tool — ideally sanity-checked against an independent pre-sale valuation.
- Idle curiosity: an online estimate is fine.
- Anything that has to stand up — capital gains tax and the 1 July 2027 reset, a family law settlement, a deceased estate, a transfer or stamp duty matter, or lending: you want a signed, independent valuation.
Why a signed valuation is stronger evidence#
For tax, the ATO’s market-valuation guidance looks for an objective, supportable valuation — comparable sales, clear methodology and a qualified, independent valuer — prepared to an ATO-acceptable standard (there is no “ATO-approved” status). Courts, revenue offices and lenders apply the same logic: a number someone is professionally accountable for is far harder to challenge than an opinion or an algorithm. For specialist purposes, a dated CGT valuation or SMSF valuation is prepared the same way.
Common questions#
What's the difference between a valuation and an appraisal?
Is an online estimate a valuation?
Can I use an agent's appraisal for the ATO or a court?
Which is more accurate?
Do I still need an agent's appraisal if I get a valuation?
Is a valuation always worth the cost over a free appraisal?
Related guides: pre-sale valuations · what is a property valuation · independent property valuer · desktop vs on-site.
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General information only — not tax, financial or legal advice. The signed valuation is provided by a qualified valuer.