A few years ago, buyers were driven by urgency, often pushing sale prices significantly above the asking price. But today's market is more cautious. Buyers are taking their time. Lenders are tightening their risk assessments. And the days of emotional bidding wars are mostly behind us.
That shift is evident in property valuations, particularly when applying for a refinance or equity release. A real estate agent might say your home could sell for $1.1 million, but a bank valuation might land closer to $1.02 million or even less.
Lenders don't just consider market sentiment. They examine hard data, including recent comparable sales, the condition of your home, and local demand.
What do valuers look at (and what do they leave out)?
According to Senior Property Valuer Belinda Botzolis, valuations in 2025 are all about evidence, not hype, headlines, or algorithmic guesses.
As Belinda puts it:
"A proper valuation considers everything from recent sales in your area to your property's condition and local market trends. Online estimates are often a broad average; they rarely tell the full story."
Where to from here?
If you're planning to refinance, upgrade, or sell, don't rely on rough estimates or appraisals. A formal valuation, or even a personalised property report, can give you a clearer picture of your home's current market value.
If that number isn't what you hoped? It's still useful. It might shape your borrowing strategy, influence your timing, or help you weigh up your options with confidence.
Want to hear more from Belinda? See our recent podcast all about property valuations and common myths.
What are the common myths that could hold you back?
Renovating your home is a big deal, whether it's been a labour of love, a smart upgrade, or something you tackled room by room on weekends. But when it comes to boosting your property's value, there's often a gap between what we think will impress a valuer and what moves the needle.
Let's bust a few of the most common property valuation myths in Australia so you can plan your next steps with your eyes wide open.
Myth 1: "Fresh paint and styling will boost my valuation."
Looks great in photos? Absolutely. Adds serious value? Not necessarily.
Valuers focus on aspects that impact liveability and longevity rather than décor. A new coat of paint, splashback, or pendant light might attract more buyers, but unless it improves functionality or addresses a known issue, it's unlikely to significantly impact your valuation. Valuers care more about structural condition, space, compliance, and comparable sales than cosmetics.
Myth 2: "My neighbour sold for $X, so mine must be worth more."
It's a fair assumption, especially if your home is bigger, newer or better maintained. But valuers don't rely on opinions or price expectations. They examine recent comparable sales and then adjust for differences such as block size, slope, renovations, and even the side of the street on which the property is located.
Just because a buyer paid $X next door doesn't mean your place will have the same value, mainly if market conditions have changed or that buyer paid above market due to emotion or competition.
As Belinda also points out:
"This is where a lot of misconceptions are. People don't see their home because they live in it. They assume their home is the same as the one down the road. Well, technically, it is. However, what they don't see is that it hasn't been well-maintained."
"You have to put yourself in the buyer's shoes. New paint, outdated furnishings, scratch marks, damaged floors, etc. can all add up for them," she adds.
Myth 3: "The agent's appraisal is the same as a bank valuation."
It's not. Real estate agents give appraisals based on what they think your home could sell for. Those numbers are often optimistic and influenced by the goal of winning your listing. On the other hand, a lender's valuation is more conservative.
It's designed to protect the bank, not to maximise your perceived value. That's why it's common for formal valuations to come in lower than agent quotes, especially in a slowing market.
Myth 4: "My council valuation reflects my property's market value."
This one often trips up many people. Council values are often outdated and based on general modelling for land tax or rates rather than real-time sales data. They don't assess the condition of your home, factor in renovations, or adjust for street appeal, layout or modern upgrades. They're often calculated well before your last major change.
Bottom line: Council values are useful for rates, not for resale or refinancing purposes.
Myth 5: "Online tools give a pretty accurate estimate."
Automated valuation models (AVMs), including the ones in our Aussie Property Reports and Aussie App, are great for a ballpark. But they don't know your house like a real valuer does. They might miss the quality of renovations, zoning updates, the block shape or usability, the orientation and natural light, and the recent off-market or high-emotion sales.
An AVM is a good starting point, but it's no substitute for an in-person assessment, especially when equity, refinancing or selling is on the table.
We get it. You've worked hard on your home, and it means a lot. But when it comes to valuations, it's not about emotion; it's about evidence. That's where an Aussie Broker can help. We'll walk you through your valuation, explain what's behind the number, and help you take action.
What are the key factors affecting property valuation?
Let's get one thing straight: not all home value comes from looks. While those new pendant lights and a fresh coat of Dulux can help attract buyers, they're not the main things a bank valuer is looking at. So, what are the factors affecting home valuation in Australia?
Here's what counts and what can't be faked in 2025.
Location: We all know location matters, but it's not just about proximity to the beach or cafés anymore. In 2025, micro-location factors are influencing valuations more than ever. That includes:
Council zoning rules: Is your home in a low-density or medium-density zone? Some zoning changes can either limit or boost potential value, especially if development is restricted or encouraged in the surrounding area.
School catchment areas: A home in the zone of a sought-after public school can be valued tens of thousands of dollars higher than one a few blocks away, even if they're identical.
Infrastructure projects: Infrastructures, such as new rail lines, motorways, or proposed developments, can nudge values upward, depending on how the area is changing.
Land size and orientation: Here's one that often surprises people: the block of land can be more valuable than the house on it. Valuers pay close attention to the total land size (not just internal living space), the shape and usability of the block, and its orientation. For example, a north-facing backyard can be more appealing to buyers and, therefore, impact resale potential.
A newer house on a smaller block might be worth less than an older house on a larger block on the same street. Why? Because land is scarce, and buildings can be changed, land can't.
Build quality: It's easy to assume that a sleek kitchen and on-trend styling equals higher value. But that's not how it works behind the scenes. That means:
Valuers are looking for cracks, sagging, water damage or dodgy renovations.
They'll factor in the cost of fixing issues before assigning a market value.
Fancy upgrades can't hide poor workmanship or aging foundations.
As Belinda, puts it:
" Little things can add a difference in value, such as how comparable they are, the land, the improvements, the number of bedrooms, the size of the home, or the aspect. Anything like that could change the value."
So, while that marble benchtop might look a million bucks if the home has drainage issues or termite damage, it'll still drag the value down.
You could have the most Instagram-worthy home on the street, but valuation is a game of substance, not style. It's about the location, the land, the structure, and how your property compares to similar recent sales in the area.
If you're looking to refinance or plan your next move, don't just rely on what the neighbour's place sold for or what a real estate agent reckons in passing. Use expert-backed data and tools that delve into the actual picture, not just the superficial one.
How do banks and valuers assess your home?
If you've ever compared your online property estimate to the number your bank provided and felt slightly deflated, you're not alone. Maybe the app said $1.2 million, but the valuer put it at $1.07 million. What gives? It's not a mistake. It's just that banks and valuers use a different lens: one based on evidence, not emotion or guesswork. Here's how property valuers value homes in Australia.
1. The physical inspection checklist
When a valuer comes to your home, they're not admiring your styling. They're working through a clear checklist that helps lenders understand the real condition of your property. They'll assess:
Structural integrity: Is the home safe and sound? Are there any signs of movement, water damage, roof issues, or poor drainage?
Quality of finishes: Valuers assess kitchens, bathrooms, flooring, and windows to determine whether the materials used are of low-end, standard, or premium quality.
Compliance: Have your renovations been approved and signed off by the council? Are there any unauthorised additions that could raise concerns?
If anything is missing or if the home appears polished but has underlying issues, these will be factored in and could lower your valuation.
"If you did go through the bank, ask to have a valuer physically come through. If not, try a different approach or get an independent valuer," adds Belinda.
2. The sales comparison approach
This is where many homeowners are caught off guard. Valuers use nearby recent sales, often within 6 months and just a few streets away, as a baseline to compare your home against others. They'll adjust based on block size and shape, the number of bedrooms and bathrooms, orientation and layout, and the street itself (such as a quiet cul-de-sac versus a main road).
Even if you've landscaped the garden or added high-end lighting, if your home is largely similar to your neighbour's place that just sold for $920K, your valuation will likely sit near that number.
Why? Because valuers work with market evidence, not potential.
3. Land and build calculations
In some cases, especially in rural areas or with new builds, valuers use other techniques to determine a fair value. These include:
Replacement cost method: What it would cost to rebuild the home from scratch, minus depreciation.
Residual land value: What the land is worth if it were developed to its "highest and best use."
These methods are less common in everyday suburban settings, but they help explain why a flashy new home in a slow-moving market might still receive a conservative valuation.
These only mean that valuation is practical, not personal. You might have spent weekends renovating, painting, and perfecting your home, and that's something to be proud of. But when it comes to valuations, banks rely on cold, hard data. Valuers are trained to assess risk.
Their job is to estimate what your property would realistically sell for right now, not what it could be worth one day or what you feel it deserves.
"So, that's typically the process. Valuers start their research, conduct their inspection, tidy up the backend, apply their findings, and send it off. Then, that's your opportunity to agree or disagree with the valuer," adds Belinda.
Want to get ahead of your next valuation? Speak to an Aussie Broker. We'll help you understand how your property is likely to be assessed and can guide you through your options if you're looking to refinance, unlock equity, or upgrade.
Where should I invest for the biggest return?
Considering an upgrade to boost your home's value? You're not alone. But before you splash out on designer tiles or a built-in wine fridge, it's worth knowing which renovations increase your home's market appeal and which ones don't make a dent when it's time for a valuation.
Let's break down the best home renovations for resale in Australia and help you make choices that are worth your time, money and equity.
Not all upgrades are created equal. The renovations that consistently receive the tick from valuers and buyers tend to improve how a home functions, not just how it looks.
Here's where real value tends to live:
Kitchen refreshes: Replacing old benchtops, updating cabinetry, or upgrading appliances can lift appeal without overcapitalising. Skip the full gut job unless it's essential.
Bathroom updates: Well-lit, well-ventilated bathrooms in neutral tones are high on buyer wish lists. Think walk-in showers, quality fixtures and decent storage.
Energy efficiency: Features like solar panels, upgraded insulation, and double-glazed windows not only save money but also appeal to buyers and lenders who think long-term.
Creating functional space: Converting a study into a bedroom, opening up a closed-off floor plan, or adding a second bathroom can all help your home work harder for buyers.
Landscaping: Beautiful gardens are a nice touch, but unless the landscaping improves access or usability (like levelling a steep block), it's rarely factored into formal value.
These are the kinds of changes valuers take seriously, especially when they're done well and approved through the right channels.
As Belinda puts it:
"Here's an example. If you have an incredible kitchen that's isolated and detached from the rest of the house, it won't be to your liking. But if that house is open to an amazing kitchen, living area, and dining room, you'll have vivid memories of every moment. It's not just the lights; it's about how they make you feel. That's what the kitchen does."
"If you're living in an old and aging area and every other home has a similar kitchen to yours, renos might not make a bit of a difference. Your home will have the same selling price. But if everyone's levelled up and you're left behind, it looks like the market will pay for something nicer," she adds.
However, if you're renovating for valuation, not just lifestyle, some upgrades may not deliver the return you're hoping for. Here are a few that can fall flat:
High-fashion finishes: That custom terrazzo splashback or imported pendant light might wow your guests, but it won't impress your valuer.
Outdoor kitchens and wine rooms: These luxe extras rarely move the needle unless you're in a prestige postcode where this level of finish is expected.
Pools: A hot topic. While pools can attract some buyers, they can also limit your market and reduce usable yard space, making them a valuation grey area.
If you're renovating for lifestyle, great. If you're renovating for resale, do your homework first.
Before you start knocking down walls or tapping into your equity, it pays to have a clear plan. Start by checking your current home value and equity using the Aussie App, then speak with an Aussie Broker about your options. We'll help you understand which renovations could make the biggest impact based on your suburb, price bracket, and goals.
The best renovations typically aren't the fanciest one; it's the one that adds value where it counts.
"Don't look at social media boards or home improvement shows to see what you think you need to do because what you think you need to do might be very different to what you have to do."
You might also be interested in: Top 10 renovations that add the most value to your home
Aussie property market trends in 2025
In 2025, the property market is moving in different directions, depending on where you live. Some suburbs are holding firm. Others are cooling after sharp pandemic-era growth. If you've had a bank valuation come in lower than expected, chances are the local market has something to do with it.
Let's break down the key Aussie property market trends in 2025, state by state, and what they could mean for your equity.
New South Wales
After a strong rebound in 2023 and early 2024, Sydney's house prices have started to steady. The median sits at around $1.37 million, a slight increase year-over-year but still far from a surge. Inner suburbs, such as the Eastern Suburbs and Lower North Shore, are experiencing softer valuations, largely due to affordability constraints and buyer fatigue.
Western Sydney and outer metro areas are busier, but valuers remain cautious due to rising listings and tighter lending conditions. If your home hasn't been recently renovated or isn't in a tightly held street, your valuation might not reflect the price peak you hoped for.
Victoria
In Victoria, the valuation gap between suburbs is growing wider. Melbourne's median house price is approximately $935,000, but that number only tells part of the story. Inner-city apartments continue to underperform, dragging down property values in densely populated areas.
Family-oriented suburbs in the east and southeast, such as Glen Waverley and Bentleigh East, are holding up thanks to strong school zones and high livability. In regional VIC, Geelong and Ballarat remain popular, but newer estates and investment-heavy zones are seeing valuation pullbacks.
Queensland
Brisbane has been one of the strongest performers through recent years, and growth is continuing in 2025, just at a slower pace. Median house prices are now around $852,000. Valuers remain confident in tightly held suburbs like Paddington, Tarragindi, and parts of the Redlands.
However, in outer metro areas like Logan, valuations have begun to ease due to affordability constraints and an increase in supply. In the regions, the Sunshine Coast and Gold Coast remain sought after, but properties bought at 2021–22 peaks may now see flatter valuations.
There are some clear national patterns, but also plenty of local exceptions:
Metro areas: Valuations are mostly stable or softening, especially in oversupplied or prestige suburbs.
Regional markets: Still performing well in places with low supply and strong infrastructure, but prices in outer fringe growth corridors are seeing corrections.
Valuers aren't looking at blanket state averages; they're zoning in on hyper-local suburb data. That's why your home's value might not match what you're seeing in broader headlines.
In 2025, the Reserve Bank of Australia is expected to ease rates again, which is great news for borrowing power and buyer confidence. But when it comes to bank valuations, the shift won't happen overnight.
Valuers base their numbers on recent, comparable sales, not future demand or optimism. Even in markets with growing interest, you'll need solid sales results nearby to see a meaningful uplift in your valuation. So, if your bank's number hasn't budged yet, this is why.
In 2025, it's not about whether the "market" is up or down. It's about your suburb. Your street. Your recent sales. If you're planning to refinance, sell, or invest again, it pays to understand the micro-trends that matter to your equity.
That's where our free Aussie Property Report and Live Equity Tracker can help. You'll get suburb-level insights backed by real data and support from an Aussie Broker to help you decide your next move with confidence.
Getting ready: How to prepare for a property valuation
Booking in a property valuation? Great move. Whether you're looking to refinance, tap into your equity, or check your current financial situation, being prepared can help the process go smoothly and support a fair outcome. While you can't influence market trends or past sales, you can control how your property presents and the story it tells on valuation day.
Here's how to prepare for a property valuation in Australia.
1. Tidy up because first impressions count.
You don't need a full reno or professional styling. But a clean, well-maintained home makes it easier for a valuer to assess condition confidently. Here's what to focus on:
Clear benchtops and declutter common areas.
Fix quick wins. Think loose handles, leaky taps, scuffed walls, and cracked tiles.
Clean windows, floors, bathrooms and skirting boards.
Tidy the front and back yard. Mow the lawn, trim the hedges, and bin the green waste.
Open all curtains and blinds. Natural light helps everything look its best.
These small efforts don't directly increase the number, but they show care and signal that the property has been looked after.
2. Get your documents in order.
A strong valuation isn't just about appearances; it's backed by supporting information. Having documents ready can help the valuer get a full picture and avoid unnecessary delays or guesswork.
Here's what's worth preparing:
Council approvals and compliance certificates for renovations or extensions
Receipts or reports for recent upgrades, especially structural or energy-related
A floor and site plan, if available
Comparable local sales (ideally within the last 3–6 months)
Rental appraisals or tenancy agreements if it's an investment property
If you're refinancing, also include your latest home loan statement, your most recent rates notice, and a copy of your building insurance certificate. These help the valuer validate their report and, in some cases, support a stronger figure.
3. Chat with your broker before the valuation.
Not sure how your home stacks up? Is it the right time to get valued? Your Aussie Broker can help with a pre-valuation check-in. We'll:
Run a free property report showing recent comparable sales.
Use our Live Equity Tracker to show how your equity is tracking right now.
Talk through timing, whether it's smart to go ahead now or wait for better local sales.
If the valuation is part of a refinance or home loan application, we'll often coordinate the appointment on your behalf.
4. Present well, but keep it real.
Candles or cushions don't sway valuers, and you can't trick them into a higher number. However, by showcasing your property in its best light, being transparent, and providing the necessary documents, you make it easier for them to reach an accurate result.
Want to see where you stand before valuation day? Open the Aussie App to check your estimated property value and equity position in real time. Or chat with an Aussie Broker to run the numbers, prep the paperwork, and help you feel confident heading in.
Let's use your valuation to build your next strategy.
If your property valuation didn't meet your expectations, you're not alone, and you haven't done anything wrong. In today's market, valuations are tighter, more conservative, and more evidence-based than ever. But that doesn't mean you've hit a dead end.
A lower-than-expected number isn't a verdict; it's a starting point.
It can help you make smarter calls around refinancing, renovations or your next move. It can also shed light on your current equity position and guide how to grow it from here.
The good news? You don't have to figure it out solo.
An Aussie Broker can walk you through your valuation, help you unpack what it means, and map out your options. We can even run a free Aussie Property Report, show you how your suburb is performing, and track your real-time equity position in the Aussie App.
So, whether you're planning to renovate, refinance, or get a clearer view of your finances, we're in your corner with expert guidance, real data and no fluff.
Let's turn those numbers into your next step forward.