Questions on Valuation Services


Frequently Asked Questions

Is the Capital Improved Value (CIV) in my Property's Council Rates Notice the Same as Market Value?

CIV is not the same as Market Value because of the different methodologies adopted and the different purposes of each.  A valuation for rating purposes (sometimes referred to as statutory valuation) does not usually involve an internal inspection and is prepared at a particular date. All Victorian Local Governments undertake general valuations of all property every year (since 1 July 2018). This means that the CIV on your rates notice could be out-dated by up to almost 12 months, depending on where you live. Furthermore, it uses a statistical method of valuation compared to the the main property valuation methods, namely Sales Comparison Approach; Cost Approach; and Income Capitalization Approach.  

Market value on the other hand, is the price a property would fetch in the marketplace at a particular date. Valuers of real property adopt the definition used by the International Valuation Standards Council:

... the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm's length transaction, after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion.

A market valuation is carried out by a qualified property valuer for various purposes and a variety of clients, almost always adopting one or two of the abovementioned main valuation methods.

How much is the Cost of a Property Valuation?

The cost of a property valuation will depend on one, two or more factors that may include:

  • Scope of valuation job – what is involved in the valuation (for example, a valuation requiring a feasibility analysis will cost more than a valuation using just the Sales Comparison Approach).
  • Location of property – properties located further from the Melbourne CBD will require longer travel time for the valuer and hence could cost more.
  • Type of property – a commercial property valuation which should adopt two valuation approaches (one as a check method) almost always cost more than a residential property valuation using the Sales Comparison Approach only.
  • Size of property – a larger or more complex property requiring a longer inspection time will cost more (for example, it would cost more to value a two-storey 5-bedroom residence with multiple living areas compared to a 2-bedroom unit.
  • Difficulty in obtaining market evidence – getting sales evidence for specialist properties or properties with some level of uniqueness is usually very difficult and time-consuming, hence this will be reflected in the cost of valuation.

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How much Time is required to get a Valuation done?

The time required for a property valuation consists of two parts: the first part being the time for the physical inspection; and the second part being the time for the valuer to prepare and complete the valuation report.

The physical inspection can take as fast as 10 minutes for a small apartment unit or 45 minutes for a large building or even longer if there are unusual features or issues that require further investigation.

The preparation and completion of the valuation report typically involves several tasks that include:

  1. 1
    Broad research of property sales within the vicinity (geographical proximity) and within the last three to six months (sale date proximity).
  2. 2
    Analysing each of the property sales from (1) above and selecting usually four to five of the most comparable sales to be used as benchmarks of value for the property being valued.
  3. 3
    Carry out at least a kerbside inspection of the selected comparable sales above.
  4. 4
    Write up (or type) the report in accordance with the standards and professional practice of the Australian Property Institute, the peak professional body for valuers. (Read “What is in a Valuation Report?”)
  5. 5
    Review of the valuation report before release as a check for any errors or inaccuracies.

The time required to complete the above tasks could take from one to three days (for urgent jobs) or comfortably five working days typically. Depending on the terms of reference, property type (for example, residential or commercial), its location, physical size, single or multiple use, number of tenancies and other variables, a property valuation could take 10 to 15 working days or even longer to complete.


You are paying good money for a valuation of your property, so it is wise to give the valuer sufficient time and not pressure or rush the valuer to complete the job for an accurate and robust valuation report.

Can I Rely on a Computer-Related Valuation from the Internet?

An online computer-generated valuation uses an Automated Valuation Model (AVM) which is an algorithm and database driven method of valuation using statistical analysis. Anyone can order a so-called valuation from the several AVM service providers in Australia for a relatively small fee (sometimes as low as $19.95). Some online home value calculators are even free to use on a limited basis.

The main benefits of these computer-generated valuations are their speed and convenience. Other than using it for properties that have a good set of recent sales evidence (such as in new housing developments) and even then with caution, there are many risks in using these so-called valuations.

For more information >> Seven Reasons Why an AVM CANNOT Replace a Human Valuer?

What is a Kerbside Valuation?

A Kerbside Valuation a.k.a. a ‘drive by valuation’ is a valuation undertaken without the benefit of an internal inspection of the property. The valuer only looks at the property from the kerbside and with information from zoning maps, aerial images, local council, sales and other databases a range of values is accessed. A Kerbside Valuation is much less accurate than a full valuation.

What is a Desktop Valuation?

A Desktop Valuation or called a Desktop Assessment by the Australian Property Institute is a valuation carried out without the benefit of an internal inspection or even a kerbside (“drive by”) inspection. The valuer relies on specified documents and information to produce an Indicative Assessment (with conditions) of value of the Subject Property. A Desktop Valuation could be less accurate than a kerbside valuation, given that the valuer had not viewed the property even from the kerbside.

Can I just Get the Value of my Property without a "Fancy Report"?

This question is often asked by people who want to get a professional opinion from a valuer before buying or selling a property but do not want to pay the full fee for a full valuation report.

The preparation of the so-called “fancy” valuation report is not the most time-consuming part of the whole valuation process. It is the research and analysis of sales evidence and the state of the market that takes up the most time and legwork. However, if a client is happy to do away with the report and just get a professional opinion of value, in such cases, a discount of 20% to 30% can be considered.

What is the Difference between a Valuer's Inspection and a Building Inspection of a Property?

As part of the valuation process a valuer will walk through the property taking notes, some measurements and photographs of the rooms and spaces within the property. Finishes, fittings, the general condition, visible defects and type of building materials are all noted and/or photographed. Outdoor improvements including any porch, verandah, patio, car accommodation and other out-buildings are also to be noted and/or photographed.

The general condition and accommodation of a property is the main focus of a valuer’s inspection. The valuer is not expected to inspect areas that are not visible (example, spaces between walls and above the ceiling) or on the roof or under the floor. Neither is the valuer expected to inspect any plumbing, electrical or structural issues other than obvious faults or defects.

A building inspection on the other hand looks at all areas of the property, including the interior and exterior of the building; structural and non-structural elements; water penetration issues; trees or vegetation that may be dangerous or may cause foundation problems.

Among the items checked by a building inspector are:

  • Floors
  • Windows & frames
  • Bathroom fittings
  • Electrical systems
  • Ventilation
  • Fences
  • Decking
  • Out buildings
  • Walls
  • Doors & frames
  • Cabinets
  • Plumbing systems
  • External walls
  • Gates
  • Patios
  • Ceilings
  • Roof space
  • Stairs
  • Insulation
  • Roof
  • Driveway
  • Balcony / Terrace
  • Renovations
  • Extensions
  • Garden


What's in a Valuation Report?

The matters considered by a valuer will vary according to the type of property (industrial, retail, commercial, special purpose, etc) being valued and the purpose of the valuation. They could include some, most or all of the following headings:

  • Valuation Summary
  • Introduction
  • Land & Title Description
  • Location
  • Site Description & Services
  • Town Planning / Resource
  • Management
  • Statutory Valuation &
  • Charges
  • Improvements
  • Environmental Matters
  • Comments on the Property
  • Basis of Valuation
  • Tenancy Details
  • Valuation Rationale or
  • Approach
  • Market Review or Summary
  • Risk Analysis
  • Valuation
  • Qualifications & Disclaimers

Can I Discuss Matters in a Valuation Report After Reading it?

Yes, you can.

Which Professional Bodies are your Associates and Valuers Members of?

The main ones are the Australian Property Institute (API), Australian Valuers Institute (AVI) and Royal Institute of Chartered Surveyors (RICS).


Any Other Questions?

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