Reference guide
Property Appraisal Guide
An appraisal is one of the few pieces of genuinely useful information a seller gets before committing to anything. It is also one of the most misunderstood — regularly confused with a bank valuation, and regularly reduced to a single number delivered with confidence and no evidence.
The short answer
A property appraisal is an agent's evidence-based opinion of what your home would sell for in the current market. It should include the comparable sales it was built from, adjustments for land, condition and position, a read on market direction, and a value range. It is not a bank valuation, and it is not the same as an automated online estimate.
What an appraisal is — and what it is not
An appraisal answers one question: what is this property likely to sell for, given the current evidence? It is a market opinion, prepared for a seller, to help them decide on price and method of sale.
A bank valuation answers a different question: how much is a lender willing to lend against this property? It is produced to a prescribed professional standard and is deliberately conservative, because the lender is protecting itself against a default. A valuation can legitimately come in below what a competitive sale would achieve.
An automated online estimate answers a third question: what do the numbers say about properties roughly like this in roughly this area? It cannot see your renovation, the condition of the street, the shape of your block or the state of your neighbours' homes. It is a useful starting point for context and nothing more.
Appraisal, valuation and automated estimate compared
| Agent appraisal | Bank valuation | Automated estimate | |
|---|---|---|---|
| Purpose | What your home will sell for | How much a lender will lend against it | General market context |
| Prepared for | The seller | The lender | Anyone |
| Inspects the property | Yes | Yes | No |
| Uses comparable sales | Yes, identified specifically | Yes, to a prescribed standard | Yes, but without condition or context |
| Typical basis | A value range | A single figure | A single figure or narrow range |
| Cost | Usually free | Paid by the borrower | Free |
The three are not competing estimates of the same thing. Using a valuation or an online figure to judge an appraisal usually means comparing answers to different questions.
What a complete appraisal includes
- 1.The specific comparable sales it was built from — street, date, land size, condition and price.
- 2.How each comparable was adjusted to reach your figure, and in which direction.
- 3.A separate assessment of the land and the dwelling, because the land often carries much of the value.
- 4.An honest read on condition, including what is dated and what has been updated.
- 5.The current market direction for your suburb and property type, with the data behind it.
- 6.A value range rather than a point estimate.
- 7.A recommended method of sale — private treaty, auction or off-market — with the reasoning.
Why a range is more honest than a number
A single figure feels more authoritative, which is exactly why it is used. But no one knows in advance that a property will sell for precisely $812,000. What the evidence can establish is a range — and what happens inside that range depends on the campaign, the competition and the buyer.
A range also keeps the campaign honest. If the market responds at the lower end, you find out early and can adjust. If it responds at the upper end, you have room to hold firm rather than being anchored to a number that was never more than a guess.
How to prepare for an appraisal
- 1.Have your paperwork ready: recent rates notices, building permits, and details of any renovations with dates.
- 2.Walk the agent through what you have updated and when — they cannot price what they cannot see.
- 3.Be straightforward about problems. A known issue priced into the appraisal is far better than a buyer discovering it later.
- 4.Point out the things that do not photograph well: block dimensions, orientation, side access, quiet position.
- 5.Ask what comparable sales were used, and look at them before the conversation ends.
Questions worth asking about any appraisal
Which comparable sales did you use, and why those? What would make you revise this figure downwards after four weeks? What is included in the range, and what would have to happen for the property to reach the top of it?
An agent who can answer those questions is giving you advice. An agent who cannot is giving you a number.
Current market context
Median house prices, growth, time on market and yield for the suburbs discussed on this page.
| Suburb | Median house | 5-yr growth | 12-mo growth | Days on market | Gross yield | Auction clearance |
|---|---|---|---|---|---|---|
| Clyde North 3978 | $752,932 | 27.2% | 3.14% | 50 | 4.14% | 11% |
| Cranbourne 3977 | $720,000 | 26.3% | 9.1% | 17 | 4% | 61.1% |
| Dandenong 3175 | $723,677 | -0.81% | 1.29% | 30 | 3.7% | 50.8% |
| Endeavour Hills 3802 | $868,837 | 10.57% | 7.76% | 24 | 3.74% | 66% |
| Hallam 3803 | $789,109 | 10.99% | 1.82% | 33 | 3.72% | 55.5% |
Sources: Andrea Monti, Andrea Monti Buyer's Agent, Barry Plant / PropTrack, CoreLogic, Cotality / OnTheHouse, Domain, Heatmaps.com.au, OnTheHouse / CoreLogic, OnTheHouse / Cotality, PremiumRea, PropTrack / Barry Plant, Property.com.au, REIV, REMAX Australia, REMAX Diamond, SuburbsFinder, Victorian Valuer-General, Woodards, Your Investment Property Magazine, property.com.au. Data last updated 2026-11-01. A dash indicates no figure was recorded for that suburb — for example, a suburb where no auctions were reported. Figures are suburb-level medians and describe the market, not any individual property.
Sources and references
- William Whyte Property — suburb market data (suburb-level medians, growth, days on market, gross yields and auction clearance), compiled from Domain, REIV, realestate.com.au, CoreLogic/OnTheHouse, HtAG Analytics and Your Investment Property. Refreshed monthly.
- Valuer-General Victoria — annual property sales and valuation reports.
- Australian Bureau of Statistics — Residential Property Price Indexes, Australia.
- Consumer Affairs Victoria — guidance for Victorian consumers on appointing and working with a real estate agent.
Property Appraisal Guide — frequently asked questions
Is a property appraisal free?
Agent appraisals are usually free and carry no obligation. A bank valuation, by contrast, is paid for by the borrower and exists to serve the lender rather than to tell you what your home is worth on the open market.
Can an appraisal be higher than a bank valuation?
Yes, and it often is. A bank valuation is deliberately conservative because it protects the lender against default, whereas an appraisal estimates what a competitive sale could achieve. If your appraisal and valuation differ, both can be correct — they are answering different questions.
How accurate are online property estimates?
They are reasonable as a rough indicator and unreliable as a specific figure. Automated estimates cannot assess condition, renovations, block shape, orientation or street position, all of which materially affect what a property sells for.
How long does an appraisal take?
The inspection itself is usually half an hour or so, but the useful part is the analysis behind the figure — selecting genuinely comparable sales, adjusting for land and condition, and reading the current market. Ask to see that work rather than only the final number.
Cite this guide
William Whyte Property, Property Appraisal Guide, updated 22 September 2026, williamwhyte.com.au/guides/property-appraisal-guide
Related reading
Property appraisal
What Should a Property Appraisal Include?
A complete property appraisal shows its working: comparable sales, adjustments for land and condition, market direction and a value range. What to look for — and the shortcuts that hide a guess.
ReadMarket report
South East Melbourne Property Market Report
A suburb-by-suburb read of the South East Melbourne property market — medians, five-year and annual growth, time on market, yields and auction clearance, with sources and what it means for sellers.
ReadSee an appraisal with its evidence attached
Our free appraisal sets out the comparable sales, the adjustments and a value range, so you can judge the number rather than simply accept it.
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