How much is my house worth?

To estimate what your house is worth, compare recent sales of similar nearby homes and ask agents to explain how your property's condition, land, layout and features affect the range. An online estimate is a starting point, an agent appraisal is an opinion, and a formal valuation serves a different purpose. None guarantees the eventual sale price.

There are three distinct ways a value figure gets produced: an automated online estimate, an agent's appraisal, and a formal valuation carried out by a registered valuer. Understanding how each one is built, and what it can and cannot tell you, makes it much easier to set realistic expectations before you sell.

Three ways a value figure gets produced

An online estimate is generated by an algorithm using recent sales data, property attributes and historical trends for your suburb. It is fast, free and useful as a very rough starting point, but it has never seen inside your home.

An agent's appraisal is a more informed opinion, based on local market knowledge, recent comparable sales and a walk through your property. It accounts for condition, layout and presentation in a way an algorithm cannot, but it is still an opinion, and different agents can reach different figures.

A formal valuation is prepared by a registered valuer, following recognised professional standards. It carries legal weight and is typically used for finance, probate, family law or tax purposes, and it comes with a cost rather than being offered free.

Why online estimates can be wide of the mark

Automated estimates work from averages and public sales records. They cannot account for a recent renovation, a poor layout, a busy road, or the extra bedroom you added without updating council records. In suburbs with few recent sales, or with a wide mix of property types, the gap between the estimate and the likely sale price can be significant.

Treat an online estimate as a conversation starter, not a pricing strategy. It can help you sense-check what an agent tells you, but it should never be the figure you anchor your expectations to.

How to read an agent appraisal critically

A good appraisal shows its working. Ask which comparable sales were used, how your property differs from them in land size, condition and features, and what assumptions were made about buyer demand. An appraisal that is simply a number on a page, with no supporting evidence, is not giving you enough to make a decision.

It is also worth being wary of an appraisal that sits noticeably above what other agents are suggesting, with no clear justification. A higher figure can be a genuine reflection of local knowledge, or it can be a way of winning your listing. The only way to tell the difference is to ask for the evidence behind it.

Our guide to why agents give different appraisals explains how to compare the evidence rather than simply choosing the highest figure.

When a formal valuation is worth paying for

Most homeowners selling through an agent do not need a formal valuation. It becomes worthwhile when you need an independent, defensible figure, for example when dividing an estate, settling a family law matter, resolving a dispute between co-owners, or when a lender requires one. A formal valuation is also useful if you simply want a second, independent opinion before relying on agent appraisals alone.

BrokerMyAgent's founder is a Registered Property Valuer, which shapes how we think about appraisal evidence and helps us ask sharper questions on your behalf when we review agent proposals.

Your next step

If you are starting to think about selling, the best next step is to get a clearer picture of your options before you speak with any agent. Our free Selling Plan walks through your property and circumstances and helps you understand what to expect from appraisals, timelines and costs.

From there, we help you compare vetted local agents, and we review agents' selling proposals, commission and marketing costs, and challenge anything that doesn't stack up. The choice of agent, and the final decisions during your campaign, remain yours.