What is the difference between an appraisal of real estate and a valuation for the purpose of agreeing a division of property between separating parties?

An initial step in negotiating a settlement of the division of property is to agree the value of all assets owned. If values cannot be agreed, it may be necessary to obtain independent appraisals or valuations. The family home is usually the most valuable of the parties’ assets and agreeing its value is crucial in negotiating an agreement, particularly when one party seeks to retain the family home. An appraisal of real estate usually provides a value range based on comparable sales in the same area. They are usually provided by real estate agents free of charge and it is often sensible to obtain 2 or 3 appraisals to compare. Appraisals of property often result in a higher range in value than valuations as real estate agents are keen to encourage a listing of the property for sale. If parties cannot agree on a value based on the appraisals obtained, it may be necessary to obtain a valuation. Valuation reports are detailed and obtained from qualified valuers who charge for the service. It is usual for parties to agree to appoint a valuer who is engaged jointly by the parties to provide the valuation. In providing the valuation, the valuer must adhere to strict single expert witness rules. They will not communicate with a party directly, unless the party is self-represented and act independently and objectively. Valuations are generally preferred by the Court over appraisals. If you require assistance please contact us at Swan Family Lawyers on (08) 8227 1970.