This study assessed and examined the valuation method used; the level of valuation inaccuracy; and the causes of valuation inaccuracy and variance in Ethiopia, particularly in valuation for property transfer in Bahir Dar City, Amhara Regional State. Both random and purposive sampling techniques were used. 336 sample properties were selected and analyzed by the error metric method to examine the level of valuation inaccuracy. In addition, 25 retrieved questionnaires were examined by weighted arithmetic mean of relative importance index. The study found that the valuation assignment is carried out by valuation experts who don’t have a real property valuation academic background; rather, they are from engineering, land administration, and geography academic backgrounds. The cost method is used as the valuation approach and depreciation is not considered in valuing the property in the study area. As the study reveals, only 14.11% of residential and 5.88% of commercial properties fall within a 20% margin of valuation error. Furthermore, the result found that the use of outdated market data, vagueness in the property's plan and specification, lack of market data, lack of short-term training and expertise exchange, lack of a clear and consistent valuation manual, the type of subject property and valuation assignment complexity, the valuation method used, the lack of an appraiser's association, errors in property inspection and valuation processes, the appraiser's educational background, and lack of integrity between professionals were significant causes of valuation inaccuracy and variance in the study area. The study concludes by recommending the concerned body to update market data regularly, provide training and experience sharing for the appraisers, establish a central data bank, provide a clear and consistent valuation manual and standards, use alternative valuation methods, develop teamwork and collaboration, establish an appraisal association, and incorporate other professional appraisers.