An agent’s appraisal and a CGT valuation are both opinions about price, and they are often close. The difference is who prepares them, for what purpose, at which date, and how much evidence sits behind the figure. For deciding whether to sell, an appraisal is usually enough. For capital gains tax, where someone else may check the figure, a valuation gives it more support.
What is the difference between an appraisal and a CGT valuation?
| Agent’s appraisal | CGT valuation | |
|---|---|---|
| Prepared by | A real estate agent | A property valuer with no interest in the sale |
| What it answers | The likely selling price in a sales campaign | Market value at the date the tax law sets |
| Date | Today’s market | A stated date, which can be in the past |
| Evidence | A handful of comparable sales, with brief or no analysis | Comparable sales checked, adjusted and explained |
| Who relies on it | You, as a guide | The client named in the report, for the stated purpose |
| Accountability | Agent licensing and consumer law | The valuer is named in the signed report and answers for it |
| Cost | Usually free | $149 desktop or $495 inspected, incl. GST |
Neither is legally binding. A valuation is an expert opinion, and the ATO can test it and prefer other evidence. What gives a valuation its weight is the process behind it: the evidence, the method and the valuer’s independence.
Can I use an agent’s appraisal for capital gains tax?
Your accountant decides what evidence suits your return. The ATO looks for a valuation that is objective and supported by evidence. Its guide says the acceptability of a valuation usually depends on the process followed rather than who did it, but that valuations by professional valuers are more credible than those by someone who is not one. The onus to support the value stays with you.
An agent’s appraisal is usually an opinion of a likely selling price, not a valuation report prepared for tax, so it gives your figure less support.
Can an agent appraise a past date?
Not usually. Agents appraise the current market, but most CGT dates are in the past: the day a home was first rented out, a date of death, the date of a transfer, or 30 June 2027 once that date has passed. A valuer can value a property as it was on a past date, using the sales evidence of the time and records of the property as it was then. See retrospective valuations.
Why can an appraisal and a valuation give different numbers?
- They answer different questions: the likely selling price in a particular campaign, against market value on a particular date.
- An appraisal looks ahead to the coming weeks. A valuation relies on sales that have already happened, so in a fast-rising market it can trail the agent’s figure, and in a falling market it can sit above it.
- A valuer adjusts each comparable sale for its differences from your property and shows the workings. An appraisal rarely does.
- A valuer has no stake in the result.
Market value has a set meaning: the price a willing but not anxious buyer and seller, both informed and dealing at arm’s length, would agree on a given date. Market value vs sale price explains it, and what a valuer looks at covers the evidence.
Are agents’ price estimates regulated?
Yes, but the rules control how agents quote prices when they sell, not whether an estimate is good enough for tax. New South Wales and Victoria both have underquoting laws. These rules make price estimates more honest. They do not turn an appraisal into a valuation.
What about online estimates and council values?
Online estimates on property websites come from automated valuation models. The Australian Property Institute says these involve no valuer and are not valuation reports. They work from sales records and property data, so they cannot allow for a property’s condition or a renovation. They are a starting point, not evidence.
The value on a rates or land tax notice is a statutory value, set under state or territory law for rating and land tax. It is not prepared for capital gains tax, and it can differ from market value.
When is an appraisal enough?
When you are the only person relying on the figure, and nothing turns on it being exactly right:
- deciding whether to sell, and roughly when
- choosing between agents, by comparing their estimates and the sales they rely on
- keeping an eye on how your local market is moving.
When is a CGT valuation the better choice?
When the tax law uses market value and someone else may check the figure. For property, the common cases are:
- a home first rented out, valued at the day it was first used to produce income: see home becomes a rental
- inherited property in some cases, valued at the date of death: see inherited property
- a gift, or a sale to someone you are not dealing with at arm’s length (often a family member), valued at the date of the transfer: see family transfers
- property held across 30 June 2027, where the value just before 1 July 2027 may matter: see 30 June 2027.
Your accountant decides which rules apply and which date to use. Find your valuation date, or read how property is valued for CGT.
How does a CGT valuation with us work?
Request a valuation online with the address, the date your accountant gives you and the reason. We confirm the valuer, fee and timing in writing, and nothing is booked or charged until you accept. You receive a signed PDF report by email, ready for your accountant.
A Desktop CGT Valuation is $149 incl. GST and an Inspected CGT Valuation is $495. See pricing for what each includes, our questions page for short answers and the glossary for terms such as arm’s length. We value property in New South Wales, Victoria, the ACT and the Northern Territory.
We value property. We do not give tax advice. Your accountant decides what evidence suits your return.