Difference between a Valuation and an Appraisal
In Queensland, valuations of real property can only be legally undertaken by a valuer who is appropriately registered under the Valuers Registration Act 1992 (VRA). A legally prepared valuation provides an unbiased and independent assessment of value that can be relied on for financial decisions, legal or statutory requirements. Valuation includes an assessment of a rental value.
To practice as a registered valuer an individual has attained tertiary education qualifications and work
experience to be competent to practice as well as being of good fame and character. Where a valuation is
undertaken for a financial decision, a legal or statutory requirement by any person, company, or enterprise not registered as a valuer this will be in contravention of the VRA.
An appraisal, on the other hand, provides a broad estimate of the potential sale price or rent applicable to a property. It is standard practice for a real estate agent to provide an estimate of the sale price or rent applicable to a property to provide information to buyers, sellers, and tenants. This is not a property valuation and cannot be relied upon as a basis for a financial decision, legal or statutory requirement.