Your house or unit is worth what a buyer will pay for it, and you won't know that exact figure until it sells. Until then, there are three main ways to get a good estimate: a free online estimate, an appraisal from a local real estate agent, or a professional valuation.

Each one answers a slightly different question:

• An online estimate gives you a rough range in about a minute.
• An agent's appraisal draws on local sales and what buyers are paying now, which is what you need to set an asking price.
• A professional valuation costs from a few hundred dollars and gives you an independent figure that carries more weight for formal purposes, such as tax.

If you're thinking about selling your property, the aim is a figure you can trust, not just the highest one you're offered. A sensible order is to start with a free online estimate, look at recent sales near you, then ask two or three local agents to appraise your home and compare what they tell you.

Use an online property value estimator

How do online estimates work?

You enter an address and sometimes a few details, such as the number of bedrooms or the home's condition. A computer model compares the property with recent sales nearby and with the home's own sales history, and gives you an estimate, often as a range.

Each site draws on its own data, which is one reason the same home can get different figures on different sites. They also update at different speeds. Cotality says its estimates can take "a few days or a few weeks" to catch up with recent sales.

Check the confidence rating. Some sites, including Cotality (formerly CoreLogic), rate how sure they are of each estimate, from high to low. A low rating means the site is less sure, for example because few similar homes have sold nearby, so treat that figure as a loose guide.

Pros

• It's free or low cost, and quick — often instant.
• It gives you a range to start from before you talk to agents.

Cons

• It may not reflect what's inside your home. Cotality says its estimates don't take into account the state of repair, renovations, views or aspect (which way the home faces).
• It can lag behind a market that's moving quickly.
• It doesn't tell you how buyers are behaving right now, or how much competition there is for homes like yours.

Tools

• OpenAgent's online estimate is free and gives you an estimate in under a minute. It asks you to rate your home's condition against homes that have recently sold nearby, so your own judgement goes into the figure.
• Our free online property report goes further, with recent sales of similar homes near you and local market trends.
• Cotality, which runs propertyvalue.com.au, sells a one-off Property Report for $43.

Look at recent sales yourself, too. Look for three or more homes like yours that have sold nearby in the last six months, and compare their size, condition and features with yours.

If your home is unusual or few have sold, you may need to look further back or further afield.

In NSW you can search property sales back to 2001 on the NSW Government's site, and the Queensland Government points sellers to free online maps of recent sales.

Getting a professional valuation for your home

How does a valuation work?

A valuer compares your home with recent sales of similar properties, usually after inspecting it, and gives you a written report stating its value on that date and how they reached it.

Look for a Certified Practising Valuer, a certification from the Australian Property Institute that requires formal training and recent valuation experience. In Queensland, valuers must be registered, and in Western Australia they must be licensed.

When you might need one:

• For tax. If you've rented out your home or used it for a business, its market value when that started may be needed to work out capital gains tax when you sell. The ATO says to get a market valuation at that point if it was after 20 August 1996. Our guide to avoiding capital gains tax explains when.
• If you own an investment property. If you expect to still own it on 1 July 2027, it's worth asking your tax agent whether to get a valuation. Capital gains tax changes for contracts signed from then, and the property's value just before that date is generally used to split the gain. Our guide to tax on selling an investment property explains how.
• Before you sell, as an independent check. Consumer Affairs Victoria suggests sellers consider paying for a valuation by an independent valuer.
• If you're separating or dealing with a deceased estate. Ask your lawyer or accountant whether you need one.

A home loan is different. Your lender arranges its own valuation, and valuation firm Herron Todd White says banks won't accept a valuation a homeowner has ordered privately.

Pros

• A valuer isn't hoping to sell your home, so their figure isn't shaped by winning your business.
• It's detailed and documented in a written report. The ATO says valuations by professional valuers are more credible, which matters if your figure is ever questioned.

Cons

• It costs money, and there's no set fee, so ask for a quote first. Acumentis says a standard residential valuation, done after an inspection, is likely to cost from $400 plus GST.
• Some firms offer a desktop valuation, done without visiting your home, which may cost less depending on the firm and the purpose.

Tools

• The Australian Property Institute's Find a Property Professional directory lists certified valuers.
• In Queensland, check the Valuers Registration Board's register.

Our guide to how a professional valuer assesses your property explains what they look at.

Real estate agent appraisals

How does an agent's appraisal work?

A local real estate agent usually visits your home and estimates what it's likely to sell for. They base this on recent sales of similar homes, your home's features and condition, and how many buyers are looking for a property like yours.

When you choose an agent, you sign an agreement that appoints them, called a sales authority or agency agreement. What an agent must tell you about their price estimate depends on where you live:

In Victoria, the reserve price for an auction or fixed-date sale must now also be published at least 7 days before the sale.

Rules change, and NSW has passed further changes, including new rules on comparable sales, that aren't in force yet. Check your state's consumer affairs site before you sign.

In WA, Tasmania and the Northern Territory, as everywhere, compare any agent's figure with recent sales yourself.

How to compare appraisals:

• Ask each agent for the recent sales behind their figure, and how your home compares with each one.
• Be wary of a figure well above the others. NSW Fair Trading says: "Be cautious of much higher estimates, as they may not be reasonable."
• Ask what asking price and selling method they'd recommend, and why.

Sources: Consumer Affairs Victoria, NSW Fair Trading, the Queensland Government, South Australia's Land and Business (Sale and Conveyancing) Act, Consumer Protection WA and the ACT's Agents Regulation.

Our guide explains what a property appraisal is in more detail.

Pros

• It's normally free. Agencies advertise free appraisals, and OpenAgent's service is free for sellers, but confirm there's no charge when you book.
• A good local agent knows what buyers are paying now, so ask which recent sales they'd compare your home with.
• You meet an agent who could sell your home, and see how they work.

Cons

• An appraisal isn't independent: the agent wants your listing.
• It isn't a valuation. Queensland's Valuers Registration Board says that in Queensland, an appraisal isn't a registered valuation and can't be relied on for financial, legal or statutory purposes.

Tools

Use our agent search tool to find local agents to invite to appraise your home.

Frequently asked questions about what your property is worth