What’s the difference between an APPRAISAL and a VALUATION?

An appraisal uses the expertise of an agent to determine the estimated market value of your property, but has no legal standing and should be used only as a guide.

A property valuation differs to an appraisal in that it is a legally binding detailed report of a property’s market value, examining aspects of the property beyond its size and location. It is undertaken by an accredited valuer. Banks are often conservative when evaluating an apartment. It is common for a valuation to come in 10-20% below the purchase price.

Developers traditionally don't like to negotiate on the contract price of an apartment as it reduces the value of the whole development. To overcome this developers often offer "rebates on settlement". This means the contract price stays the same but upon settlement you receive a rebate, meaning the apartment costs you less than what the contract states. This adjustment is made at settlement. Banks are often unaware of the rebate as they finance the apartment based on the contract price.