Selling in Cheltenham: agent appraisal or independent valuation?

Many Cheltenham sellers start with a free appraisal from one or more local agents. That is a reasonable first step, but an appraisal and a valuation answer different questions. One is an agent's estimate offered while seeking your listing. The other is an independent opinion of market value at a stated date, prepared for a stated purpose.

Which one you need depends on what the figure has to do: guide a campaign, set a reserve, satisfy the State Revenue Office or support an accountant's calculation.

What Victorian law requires of an agent's estimate

Once you appoint an agent, the figure stops being informal. Consumer Affairs Victoria's underquoting guidance for agents says the estimated selling price must be included in the sales authority. It must be reasonable and must take into account the sale prices of the 3 properties most comparable to yours. It can be a single price or a range of up to 10 per cent.

If the estimate stops being reasonable during the campaign, for example after offers come in, the agent must tell you in writing and update both the sales authority and the advertising. Buyers see the agent's Property Price Statement, formerly called the Statement of Information. It shows an indicative selling price, the most comparable sales and the median price for the same type of property in the suburb. CAV says agents who breach underquoting laws risk a penalty of more than $50,000.

These rules control how a price is advertised. They do not make an appraisal an independent valuation, and an agent seeking the listing is not a neutral party.

Where Cheltenham appraisals tend to differ

Two agents can produce noticeably different figures for the same Cheltenham house. Some reasons are local.

The suburb median an agent quotes depends on which locality is used. Valuer-General Victoria's Guide to Property Values for 2025 reports Cheltenham, Cheltenham East and Cheltenham North separately, with different medians. Check that the median and comparable sales on a statement come from the same locality and property type as your home.

Development potential is another. The SRL East Cheltenham Structure Plan allows taller buildings around the future SRL station and Southland, with lower preferred heights in other parts of its area. An agent may pitch a larger block to developers on that basis. Whether buyers have actually paid more for comparable land is a question of sales evidence, and a valuer will test it rather than assume it.

Finally, the comparable sales chosen matter. A renovated townhouse near Cheltenham Station and an original house on a wide block are different products, even a few streets apart.

When a valuation is the better tool

An independent valuation suits situations where the price itself has consequences.

If you are selling to a relative, the State Revenue Office says dutiable value is the greater of the price paid and the market value. For related parties, you need to declare the market value and support it with an independent valuation. An agent's appraisal is not that.

A valuation is also useful when co-owners disagree about a fair price, when you want a reserve for auction set without reference to an agent's listing pitch, or when an accountant needs a market value for a capital gains tax calculation. Your accountant should confirm which date applies.

Hypothetical example: siblings selling a Cheltenham house left to them by a parent receive appraisals that are $150,000 apart. A valuation at a current date gives them a common reference before they choose an agent, while the agent remains responsible for the campaign.

Choosing between the two reports

For an early check while you compare agents, an automated market assessment gives an unsigned estimate from sales data. It is quick, but it cannot see condition, renovations or development potential.

Where the figure will be relied on by the SRO, an accountant or another party, order a certified valuation, and ask for an inspection if the condition or layout of the house matters. For a related-party sale, a stamp duty valuation is designed for that purpose.

If you are unsure which report fits your sale, contact us with the address, the purpose and the date the value is needed for.