Selling guide · 4 min read · Checked 21 October 2026

How Much Is My House Worth? Appraisals, Valuations and Online Estimates

In short

Your home is worth what a buyer will pay, and the best evidence is recent sales of genuinely similar homes nearby. An agent’s appraisal estimates that price. A bank valuation is a cautious figure for lending. A council valuation is for rates and land tax. Online estimates are a starting point and can be well off for unusual homes. Ask anyone giving you a figure for the comparable sales behind it, in writing.

Five numbers, five purposes

Who values your home, and why
Agent’s appraisal	An estimate of what buyers will pay, to set a price and win your listing. Free.
Bank valuation	A cautious figure the lender uses to decide how much to lend. Ordered by the lender.
Council valuation	Set every year by the Valuer-General as at 1 January, for rates and land tax.
Online estimate	An automated figure from past sales data. Instant, but rough.
Formal valuation	A paid report by a qualified valuer, for family law, estates, tax or super.

How to read comparable sales

Look for sales in the past six months or so, close by, with similar land, bedrooms, bathrooms and condition.
Adjust for differences honestly: a renovated kitchen, a busier street or a smaller block all matter.
Three genuinely similar sales tell you more than ten loose ones.
Every home for sale in Victoria now has a Property Price Statement showing the three sales the agent thinks are most comparable, plus the suburb median. Check whether you agree with their choice.

Watch for “buying the listing”

Some agents quote a high figure to win your business, then ask you to lower your expectations a few weeks into the campaign. Victorian law pushes against this: the estimate in the sales authority must be reasonable, based on the three most comparable sales, and given as a single figure or a range of no more than 10%. The advertised price cannot be lower than that estimate.

The simplest protection is to ask every agent for the same thing: their figure, the sales behind it, and how they would explain the gap to a buyer.

Online estimates

Automated estimates work best for typical homes with plenty of similar recent sales, such as houses in a newer estate. They struggle with unusual homes, recent renovations, views and anything a database cannot see. PropTrack describes a best-in-class automated valuation as one that lands within 10% of the eventual price more than 80% of the time. On a $1.2 million home, 10% is $120,000.

Domain labels its estimates with a high, medium or low confidence rating. Treat anything below high as a rough guide only.

Bank valuations

A bank valuation is usually done by an independent valuer for the lender, and it is for mortgage purposes only. Lenders generally will not rely on a valuation you order yourself. Bank valuations are often cautious, and in a falling market a low one can leave a buyer short of finance, which is one reason a buyer may ask for a longer settlement or a finance condition.

If a valuation seems low, give your broker strong recent sales evidence and ask whether the lender will review it. Some will and some will not.

Council valuations

Every Victorian property is valued each year as at 1 January, and the figure appears on your rates notice. Site value is the land alone and is used for land tax. Capital improved value is the land plus buildings. Net annual value, for homes, is 5% of the capital improved value. Councils set rates from one of these.

Council values are mass valuations and often sit below sale prices. A lower figure means lower rates and land tax, so it is not a reason to worry. If you think it is wrong, you can object in writing within two months of the notice.

When you need a formal valuation

A family law property settlement, a deceased estate, a capital gains tax calculation or a self-managed super fund can each need a market value backed by a written report. Look for a Certified Practising Valuer with the Australian Property Institute, and tell them what the valuation is for.

Renovations and value

Improvements rarely add their full cost to the price, and they add least in suburbs where buyers will not pay a premium for them. A pool or a new kitchen can still help a home sell, but check comparable sales before spending to sell.

Questions

What people ask us

Why is my bank valuation lower than the agent’s appraisal?

The bank’s valuer is protecting the lender, so they are cautious and weigh recent settled sales heavily. The agent is estimating what competing buyers might pay. A gap between the two is common, especially when prices are falling.

Why is my council valuation so different from what homes sell for?

It is a mass valuation set once a year as at 1 January for rates and land tax, not a sale price. It often sits below market value.

Are online property estimates accurate?

They can be close for typical homes with lots of similar sales, and well off for unusual ones. Use them as a starting point, not a price.

Do I need to pay for a valuation before I sell?

Usually not. A well-evidenced appraisal from an agent is enough to set a price. You may need a formal valuation for a family law settlement, an estate, tax or a super fund.

How do I know if an agent’s figure is realistic?

Ask for the three most comparable sales behind it, in writing, and compare them with what other agents show you. A figure without evidence is a sales pitch.

Sources

Written by Luke Fornieri, licensed estate agent, Fornieri & Azar, East and South East Melbourne. Checked 21 October 2026. General information only, not legal, tax or financial advice. Grants, duty and rules change, so check the sources or ask us about your situation.