A formal valuation report can run to many pages of property details, market commentary, sales evidence and fine print. For many Sydney owners, executors and separating couples, it is the first valuation report they have ever read.
Knowing what each section means helps you check that the valuation was prepared on the right basis, for the right date and with the right information about your property.
This guide walks through a typical report for a Sydney or regional NSW property and highlights the details worth checking before you, your solicitor or your accountant rely on it.
What is a property valuation report?
A property valuation report is a written opinion of value prepared by a qualified valuer. It records what was valued, why, at what date and on what basis, and sets out the evidence and reasoning behind the figure.
A formal report is different from a one-page estimate or an agent's appraisal. It is designed to be relied on by a named party for a stated purpose, and it may be tested by lawyers, the ATO, Revenue NSW or a court.
When you may receive a valuation report
You may receive a formal valuation report where:
A property is being divided in a family law settlement
An accountant needs a CGT valuation, including a historical value
A property is transferred between family members and duty is assessed on market value
An executor needs a date-of-death valuation
An SMSF trustee needs an annual market value
A property is the subject of a dispute or litigation
Key sections of a valuation report
1.Instructions and purpose
This section names who instructed the valuer, who may rely on the report and what it is for. A report prepared for one purpose may not be suitable for another.
2. Valuation date and inspection date
The valuation date is the date the value applies to. The inspection date is when the valuer visited. For a retrospective valuation, these will be different.
3.Basis of value
Most reports adopt market value. The report should also state the interest valued, for example vacant possession, or subject to an existing lease.
4.Title, zoning and planning
This section records the title details, such as Lot and Deposited Plan or Strata Plan number, and the zoning under the council's Local Environmental Plan. It may also note heritage listings, flood planning and easements.
5. Property description
A description of the land and improvements, including site area, building type, accommodation, construction, condition and any notable features or defects.
6. Market commentary and sales evidence
The valuer describes market conditions and lists the comparable sales relied on, with notes on how each compares to the subject property.
7. Valuation rationale
This explains the method used, the adjustments made and how the valuer reached the final figure.
8. Assumptions, qualifications and reliance
The report lists assumptions, such as that there are no unrecorded encumbrances, and limits on who may rely on it. These sections are easy to skip, but they can matter a great deal.
NSW details worth checking
For a Sydney or regional NSW property, it is worth confirming:
The Lot and DP (or SP) number matches your title
The zoning is correct, for example R2 Low Density Residential or R3 Medium Density Residential
Any heritage item or heritage conservation area is identified
Flood or bushfire affectation is noted where relevant
For units, strata levies and any known building defects are considered
Approved additions, such as a granny flat, are recorded correctly
How to review your valuation report
1. Check the purpose and valuation date
Make sure both match what your solicitor or accountant asked for.
2. Check the property facts
Confirm the land size, bedrooms, bathrooms, parking and improvements are correct.
3. Look at the sales evidence
Check that the comparable sales are relevant in location, size, type and timing.
4. Read the assumptions
Note any assumptions that do not reflect your property's real circumstances.
5. Ask the valuer questions
If something looks wrong, raise it in writing. Valuers can clarify their reasoning or correct factual errors.
Valuation report versus other documents
| Document | Prepared by | Purpose |
Suitable for legal or
tax use?
|
|---|---|---|---|
| Sales EvidenceFormal valuation report
|
Certified
Practising Valuer
|
Independent opinion of
market value at a stated
date
|
Yes, for the stated
purpose
|
| Agent appraisal | Real estate agent |
Indicative selling price,
often for a listing
|
Generally no |
| Bank valuation |
Valuer instructed
by the lender
|
Mortgage security
assessment
|
Generally no;
prepared for the
bank
|
|
NSW Valuer
General land
value
|
Valuer General |
Land value for council rates
and land tax
|
No; land only, not
market value
|
Example: reading a retrospective CGTreport
Consider an owner who lived in a two-bedroom apartment in Randwick, then moved out and rented it from March 2019. Their accountant asks for a valuation as at the date it was first rented, so the cost base can be worked out when the apartment is sold.
The report arrives with an inspection date in 2026 and a valuation date in March 2019. That is correct for a retrospective valuation, but the owner should still check a few things:
The valuation date matches the date the property was first used to produce income, as advised by the accountant
The property description reflects the apartment as it was in 2019, not after the bathroom renovation completed in 2022
The sales evidence comes from around early 2019, not from the current market
The basis of value is market value with vacant possession, as the apartment was empty before the first lease began
The assumptions explain how the valuer established the 2019 condition, such as the photographs and invoices the owner supplied
If any of those points is wrong, the report may not do the job the accountant needs, even if the valuation figure itself seems reasonable.
Red flags to look for
Most valuation reports are well prepared, but it is worth raising a question with the valuer if you notice:
The wrong address, Lot and DP number, strata plan or land area
A missing building, granny flat, pool or approved extension
Comparable sales that are much older, larger or in a clearly different location
A valuation date that differs from the date in your instructions
A purpose or reliance clause naming a different party, such as a bank
Assumptions that contradict what you told the valuer, such as vacant possession for a tenanted property
Raising these early is far easier than correcting a report after it has been lodged or relied on.
Documents to keep with your report
A valuation report is often needed again years later, especially for CGT or estate purposes. It is sensible to keep it with:
The letter of instruction or engagement terms
Plans, approvals and renovation invoices supplied to the valuer
Photographs of the property at the valuation date
Any correspondence with the valuer, including answers to questions
Settlement or transfer documents for the relevant transaction
Keeping the full set together makes it easier for an accountant, solicitor or auditor to rely on the report later.
Frequently asked questions
How long is a valuation report valid?
A valuation is generally current only at its valuation date. If the market or the property changes, or a new date is needed, an updated report may be required.
Can I use my valuation reportfor a different purpose?
Usually not without the valuer's agreement. Reliance is limited to the stated purpose and the named parties.
What if Ithink a factin the reportis wrong?
Contact the valuer in writing with supporting evidence, such as plans, approvals or photographs. Factual errors can be reviewed.
Why are my land value and my valuation so different?
The NSW Valuer General land value covers the land only, excluding the house and improvements. A market valuation covers the whole property.
What does "subject to" mean in a valuation report?
A valuation may be stated as "subject to" certain conditions, such as the completion of works, the confirmation of a lease or the absence of contamination. It means the figure only holds if that condition is true. If the condition is not met, the valuer may need to review the report.
Do I need a new reportifI sellthe property later?
Not necessarily. A retrospective report prepared for CGT can still be used when the property is eventually sold, because it records the value at the earlier date. A new valuation is only needed if a different date or purpose applies. Your accountant can confirm what is required.
Can a family law valuation report be challenged?
In family law matters, parties can generally put written questions to a single expert valuer. Whether a further expert can be used is a legal question for your solicitor.
Need a clear property valuation reportin Sydney?
If you need an independent, well-documented valuation report for a legal, tax, estate or financial purpose, contact ValueMax Property Valuers for valuations across Sydney and regional NSW.
