Registered Valuation vs Market Appraisal
A registered valuation is a formal, independent assessment by a qualified valuer — accepted by banks and courts. A market appraisal is an informal estimate by a real estate agent, useful for pricing guidance but carrying no formal weight.
Side-by-Side Comparison
| Attribute | Registered Valuation | Market Appraisal |
|---|---|---|
| Source | Registered valuer (NZIV-registered) | Real estate agent |
| Cost | $600-$1,200+ | Free (agents provide as part of listing pitch) |
| Turnaround | 3-10 working days | Usually provided at the initial listing meeting |
| Content focus | Detailed report with comparable sales analysis, property inspection, and reasoned market value | Estimated price range based on agent experience and recent sales |
| Accepted by banks | Yes — required for mortgage applications | No — banks do not accept agent appraisals |
| Legal standing | Formal report with professional liability and regulatory oversight | None — informal opinion only |
| Independence | Independent — valuer has no interest in the sale outcome | Potential conflict — agent earns commission on the sale |
| Property inspection | Thorough interior and exterior inspection | Varies — may be a brief walkthrough or drive-by |
Registered Valuation Explained
A registered valuation is prepared by a valuer registered under the Valuers Act 1948 and regulated by the Valuers Registration Board. The valuer conducts a thorough inspection of the property, researches comparable sales, analyses market conditions, and produces a formal written report stating their professional opinion of market value.
The report is detailed and reasoned, typically running 10-20 pages. It includes property descriptions, comparable sales evidence, adjustments for differences, and a clear rationale for the final valuation figure. The valuer carries professional indemnity insurance and can be held accountable for negligent valuations.
Registered valuations are accepted by banks for mortgage lending, by the Family Court for relationship property matters, by the IRD for tax purposes, and by insurance companies for claims. When the stakes are high, this is the document you need.
Market Appraisal Explained
A market appraisal (sometimes called a comparative market analysis or CMA) is an informal estimate of a property's likely sale price provided by a real estate agent. Agents typically offer free appraisals as part of their pitch to win a listing, drawing on their local knowledge, recent sales data, and experience in the area.
Market appraisals can be genuinely useful as a quick gauge of value, especially from experienced agents who know the local market intimately. However, they are not independent — the agent has a financial interest in winning the listing, which can create incentive to provide an optimistic estimate to secure the seller's business.
It is good practice to get appraisals from two or three agents to triangulate a realistic range. But remember that an appraisal is an opinion, not a formal valuation, and it carries no legal weight or professional accountability.
Do You Need Both?
It depends on your situation. If you are selling, a free market appraisal from two or three agents gives you a realistic pricing range at no cost. If you are buying and need a mortgage, the bank will require a registered valuation regardless. If you are going through a relationship property settlement, estate distribution, or any legal process, only a registered valuation will be accepted.
Which Should You Get First?
If you are selling, start with free market appraisals from agents to understand the market. If the property is unusual or you want extra confidence in the pricing, commission a registered valuation before listing. If you are buying, the bank will arrange a registered valuation as part of the mortgage process — you do not usually need to organise this yourself unless you want independent confirmation.
Frequently Asked Questions
Why would an agent overvalue my property?
Some agents provide optimistic appraisals to win listings. Once they have the listing, the property may sit on the market before the price is eventually reduced. This practice, known as buying a listing, is why getting multiple appraisals and comparing them with recent comparable sales is important.
Can I use a registered valuation to negotiate a purchase price?
Yes. If your registered valuation comes in below the asking price, it provides objective evidence to support a lower offer. However, the seller is not obligated to accept your valuation figure — the market ultimately determines the sale price.
How current does a registered valuation need to be for a bank?
Most banks require a valuation to be less than 90 days old. In a rapidly moving market, some lenders may require an even more recent valuation. Check with your bank or mortgage broker for their specific requirements.
Related Terms
Rates
GlossaryAnnual property taxes charged by your local council to fund public services, infrastructure, and local government operations.
LIM Report
GlossaryA Land Information Memorandum — an official council report summarising everything the council knows about a property.
LIM Report vs Title Search
CompareA LIM report tells you what the council knows about a property. A title search shows who owns it and what legal interests are registered against it. You need both.
LIM Report vs Building Report
CompareA LIM tells you what the council knows on paper. A building report tells you the physical condition of the property. They cover completely different things — get both.
Building Report vs Building Consent Search
CompareA building report is a physical inspection of the property by a qualified inspector. A building consent search is a paper-based check of what building consents the council has on file. One tells you the condition; the other tells you the compliance history.
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