If you've been told you need a property valuation — by your bank, your accountant, your solicitor, or your financial planner — or if you've decided you want one for your own informed decision-making, the process is straightforward once you know what to expect. Many people delay getting a valuation because they're not sure how to start, what it involves, or how long it takes. This guide removes the uncertainty.
Getting a formal property valuation in NSW involves engaging a registered, independent valuer, providing details about your property and the purpose of the valuation, having the property inspected, and receiving a written report. The entire process is typically completed within a week for standard residential properties.
This guide walks you through each step, explains what you need to prepare, and helps you ask the right questions when selecting a valuer.
Step 1: Understand Why You Need the Valuation
Before you contact a valuer, be clear about the purpose of the valuation. The purpose determines the type of report required, the methodology the valuer will use, the date to which the valuation applies, and in some cases the specific requirements the report must meet.
Common purposes include: mortgage or refinancing (the lender may have specific requirements); capital gains tax (the ATO has documentation standards); family law proceedings (reports may need to meet evidentiary requirements); deceased estate or probate administration; SMSF annual reporting or acquisition; pre-purchase or pre-sale assessment; rental assessment for a lease or SMSF; insurance replacement cost; and expert witness or litigation support.
Each purpose may have different requirements for report format, valuation date (current versus retrospective), and level of documentation. A valuer experienced in your specific purpose will know these requirements and structure the report accordingly.
If you're unsure what type of valuation you need, your accountant, solicitor, or financial adviser can advise. Alternatively, contact a valuation firm directly — a good firm will ask the right questions and recommend the appropriate report format.
Step 2: Find a Registered, Independent Valuer
In NSW, property valuers must be registered under the Valuers Act 2003. Registration is administered by NSW Fair Trading. You can verify a valuer's registration at the NSW Fair Trading online register. Engaging a registered valuer is non-negotiable for any formal purpose — an unregistered opinion will not be accepted by lenders, the ATO, or courts.
Beyond registration, look for relevant experience. A valuer who primarily works on commercial or industrial properties may not be the right choice for a complex residential matter, and vice versa. Ask whether the firm has experience with your property type and your specific purpose. For specialised purposes — SMSF valuations, family law expert witness work, CGT retrospective valuations — ask specifically about their track record in that area.
Certified Practising Valuers (CPVs) through the Australian Property Institute have demonstrated competency against professional standards and must maintain ongoing professional development. CPV status is an additional indicator of professional commitment, though all registered valuers must meet the statutory requirements set by NSW Fair Trading regardless of API membership.
Independence is equally important. Your valuer should have no financial interest in the outcome of the valuation. A valuer who has a relationship with one of the parties in a legal dispute, or who has recently acted for the other side of your transaction, may have a conflict of interest. Ask about independence upfront.
Step 3: Contact the Valuation Firm and Get a Quote
Once you've identified a registered valuation firm, make contact and provide the following information: the property address; the property type (residential house, unit, commercial, rural, etc.); the purpose of the valuation; the required valuation date (current date, or a specific retrospective date); any deadline for the report; and any relevant background (the property is tenanted, access is restricted, the property has development approval, etc.).
A reputable firm will provide a clear, upfront fee quote — or explain why they need to inspect before providing a firm price, if the property is sufficiently complex. Get the fee in writing, and confirm what is included (the inspection, the research, the report, any travel if the property is in a regional area).
Ask about turnaround time. For most standard residential properties in metropolitan Sydney, expect two to five business days from inspection to report delivery. More complex properties, commercial assets, or retrospective valuations may take longer. If you have a hard deadline, communicate it at this stage — not after you've already instructed.
Compare quotes from two or three firms if you are uncertain, but be cautious about selecting purely on price. A significantly lower quote may reflect a less experienced valuer, a less thorough research process, or a report format that doesn't meet your specific requirements.
Step 4: Confirm the Instruction and Arrange Access
Once you've agreed on the fee, timeframe, and scope, confirm the instruction in writing — an email is sufficient. Reputable firms will typically send you an engagement letter or instruction confirmation that sets out the terms of the assignment.
Arrange access for the inspection. The valuer must physically inspect the property to prepare a formal report. If you're the owner-occupier, you can be present during the inspection — and it's often useful, as you can draw the valuer's attention to improvements or features that may not be immediately apparent.
If the property is tenanted, notify the tenancy manager or tenant as early as possible. Under the Residential Tenancies Act 2010 (NSW), tenants must receive at least 14 days' written notice for a valuation inspection (unless the tenant agrees to shorter notice). Give yourself enough lead time to comply with notice requirements and avoid delays.
For commercial or industrial properties, confirm whether the tenant or occupier needs to be notified, and whether access to all areas of the property (including plant rooms, roof spaces, and car parking) can be arranged.
Step 5: The Inspection
On the day of the inspection, the valuer will attend the property and systematically assess it. For a residential property, this typically involves measuring the land and dwelling, inspecting all rooms and improvements, noting condition and maintenance, photographing key features, and identifying any factors that could positively or negatively affect value.
The inspection for a standard residential property typically takes between 30 minutes and one hour, depending on the size and complexity of the property. Commercial or industrial properties take longer, particularly if there are multiple tenancies, significant plant and equipment, or complex lease arrangements to assess.
Be available to answer questions during the inspection if possible. The valuer may ask about recent improvements, outstanding permits, body corporate levies (for strata properties), or other factors relevant to the assessment. Providing accurate information at this stage helps ensure the report is as accurate as possible.
The inspection is not a building inspection. The valuer is assessing value, not structural condition. However, visible defects — major cracks, obvious dampness, missing roof sections, pest damage — will be noted and will influence the valuation. If you are aware of issues that may not be immediately visible, disclose them to the valuer.
Step 6: Research, Analysis, and Report Preparation
After the inspection, the valuer conducts their market research. This involves identifying and analysing comparable sales in the area, assessing current market conditions, and applying the appropriate valuation methodology. This phase is typically the most time-intensive part of the process, particularly for complex properties or retrospective assignments.
The report is then written, internally reviewed, and signed off by the registered valuer. The report will include a property description, market commentary, comparable sales analysis, methodology explanation, and the assessed market value conclusion. The valuer certifies the report with their registration details.
You will receive the completed report by email in PDF format, or in some cases in hard copy if required. Review the report carefully — in particular the property description (to confirm accuracy), the comparable sales selected, and the conclusion. If anything appears incorrect or if you have questions, raise them with the valuer before relying on the report.
Step 7: Use the Report Appropriately
A formal valuation report is prepared for a specific purpose and a specific date. Use it for the purpose for which it was commissioned and within a reasonable timeframe. A report prepared for a mortgage application in January may not be current enough to use in a legal proceeding twelve months later.
If your circumstances change — if the property is significantly altered, if the market shifts substantially, or if the purpose of the valuation changes — you may need to commission a new or updated report. Ask the valuation firm if you're unsure whether an existing report remains appropriate.
Keep the report in a safe, accessible location. For CGT purposes, valuation reports should be retained for as long as you own the property — and potentially longer, as CGT calculations may need to be revisited years after a sale. For SMSF purposes, reports must be retained as part of the fund's records.
Frequently Asked Questions
Can the bank organise the valuation for me?
When you apply for a mortgage or refinance, the lender will typically arrange a valuation of the security property. This is a lender's valuation, prepared to the lender's instructions and for the lender's purposes. You may not receive a copy of the report, and it may not be suitable for other purposes (such as CGT, family law, or SMSF). If you need a valuation for your own purposes — or if you believe the lender's valuation is significantly below market — commissioning an independent valuation is the appropriate step.
How long is a valuation report valid for?
Valuation reports reflect market value at a specific date. There is no fixed validity period, but the relevance of a report diminishes as time passes and market conditions change. For mortgage purposes, lenders typically require a report no older than three to six months. For CGT or legal purposes, the report should ideally be obtained at or close to the relevant event date. If significant market movement has occurred since the report date, a new assessment may be needed.
What happens if I disagree with the valuation?
First, review the report's comparable sales and methodology carefully. If you believe there are errors in the property description, or comparable sales that should have been included, raise these with the valuer in writing. A good valuer will consider supplementary evidence and, if warranted, revise their conclusion. If you remain dissatisfied, you can commission a second independent valuation. For formal disputes, the opposing valuations may be considered by a court, tribunal, or the ATO.
Do I need to clean or prepare my property before the inspection?
The valuer assesses the property on its merits at the time of inspection. Extreme clutter or uncleanliness can affect the valuer's ability to inspect the property thoroughly, so ensuring the property is accessible and reasonably presented is worthwhile. However, you do not need to stage the property as you would for a real estate sale. The valuer is assessing physical features and market value — not presentation for buyer appeal.
Can a valuation be conducted remotely or via photographs?
Some lenders and certain limited purposes allow desktop or drive-by valuations that do not involve a full internal inspection. However, these are not appropriate for formal purposes such as family law, ATO submission, SMSF auditing, or any situation where the accuracy and defensibility of the report is critical. A formal valuation report for serious purposes always involves a physical inspection of the property by the valuer.
