By Sam Walker

Has your property dramatically risen since its pre-boom purchase or could its value have slipped since the market's peak? And for those intending to buy property now, how do you know that you’re not paying too much?

Most investors seek answers to these questions by contacting their local real estate agent. Ultimately, a property is worth what the market is willing to pay and real estate agents in the area have intimate knowledge of the ups and downs, the pros and cons and the expectations of buyers.

Brett Schultz, senior valuer at Savills Australia says it's common for people to request a valuation if they are planning to sell or just to satisfy curiosity. "I would hope that if someone just wants to know what their house is worth a real estate agent should be able to do that," he says.

But sometimes there is a need, or a desire, to get something more formal and legally recognised. That's when you need the services of a valuer.

Valuers are a recognised authority on what a property is worth. They usually require a university degree, have professional standards to meet and are required to have continual professional development. Industry regulations vary around the country, with some states requiring valuers to be registered.

"As valuers we don't set the market, we interpret it," Schultz says. "But obviously when someone is looking to buy into a market they should do their research."

Banks usually require a property valuation before approving a mortgage loan. Most institutions have a relationship with a valuing company and organise it on behalf of the borrower. But John McEvoy, state director of Landmark White in Queensland says not all banks disclose the valuation to the buyers - a practice he doesn't agree with.

But there are other reasons you might seek a valuation.

In the case of divorce or defacto breakups where assets are being divided both parties are required to get a valuation or can agree on a single valuation.

McEvoy says a valuation should always be sought in the case of deceased estates.

Sometimes the Australian Taxation Office or the courts require property valuations to determine the true value of someone's assets or help settle disputes between families or business associates.

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