Council Valuation vs. Real Estate Agent Valuations: How Do They Differ?

By Ellen Blundy | September 2024

Council Valuation vs. Real Estate Agent Valuations: How Do They Differ?

When it comes to selling your property, understanding its true value is crucial. However, the concept of “value” can vary depending on who’s providing the assessment. Two common types of valuations are council valuations and real estate agent valuations, and knowing the difference between them can significantly impact your property journey.

What Is a Council Valuation?

A council valuation is an assessment conducted by your local council to determine the value of your property for the purpose of calculating council rates. This valuation typically considers the land and improvements, such as buildings, to establish a figure that will be used to determine how much you’ll pay in council rates.

Council valuations are often conservative and do not reflect current market trends. They are generally conducted every few years, meaning they might not account for recent changes in the property market or significant improvements made to your home. Because of this, the council valuation can be quite different from the market value of your property.

What Is a Real Estate Agent Valuation?

A real estate agent valuation, on the other hand, is a market-based assessment conducted by a property professional. This valuation takes into account current market conditions, recent sales of comparable properties, and the unique features of your home.

Real estate agents have their finger on the pulse of the market and can provide a more accurate and timely valuation. They consider factors such as location, demand, property features, and the overall market sentiment, giving you a realistic picture of what your property could sell for in the current market.

Why the Difference Matters

Buyers often look at the council valuation as a reference point when considering their offers. However, because council valuations can be outdated or conservative, they might not reflect what your property is truly worth in today’s market. Relying solely on the council valuation could lead to undervaluing your property and accepting offers lower than what you could achieve.

This is where a real estate agent’s valuation comes in. By getting a professional market assessment, you gain a clearer understanding of your property’s true value, enabling you to set a competitive asking price that reflects the current market.

The Importance of a Second Opinion

At Peake Real Estate, we believe in providing our clients with a comprehensive understanding of their property’s value. While council valuations are useful for certain purposes, they should not be the sole factor in your pricing strategy. Our team offers expert real estate valuations that consider all relevant market factors, ensuring that you have a complete picture of your property’s worth.

Understanding the difference between council and real estate agent valuations is key to making informed decisions when selling your property. Don’t leave money on the table by relying solely on a council valuation.

For an accurate and up-to-date valuation of your property, contact the expert team at Peake on 9707 5300. Let us help you navigate the market with confidence and achieve the best possible results.