The appropriate valuation standard consists of 5 elements:

This competency standard is covered by considering in detail the preparation of, and rationale behind the most popular standard form valuation report; PropertyPro. PropertyPro has been designed and developed by the Australian Property Institute (API) for residential mortgage valuations and is a good example of how a report should be constructed and the basic parts of valuation report. The form has flexibility to allow its use for almost all residential valuations.

The guidance notes cover extremely well and in detail the preparation and deliverance of the report to a residential mortgagee. The form and guidance are reproduced with the kind permission of the API. Note that the PropertyPro form is copyright.

See sample of PropertyPro.


The guidance notes are for the guidance of mortgage clients and related third parties who rely on such reports, to acquaint them with:

Valuers using this report format certify that the report is made in accordance with the guidance notes and advise that the report must be interpreted with it. It should be noted that the format is specifically designed for the purpose of providing a brief report on residential property for mortgage purposes only and is not designed for use for other purposes.

The Institute recommends that lenders only request Valuers to provide more comprehensive reports:

The Institute encourages residential mortgage lenders and related third parties to require Valuers to use the this format. The Institute also asks its Valuer members to provide the format to residential mortgage clients who do not specify a particular report format and to encourage its use in the interests of consistency and quality.

See instructions to valuer


Layout designed to facilitate easy reading has most of the key information, the risk analysis, valuation and assessments (and their certification) on the first page, while supporting information, data and comments follow. While this is primarily to facilitate easy checking by the lender and/or trustee and mortgage insurer, it is recommended that the whole report be read.

The risk analysis on the front page with its graphic presentation particularly serves to draw immediate attention to any risks rated 'Medium to High' or 'High', and to appropriate comments later in the report.


It is particularly intended that the report will contain not just a current and Market Related value assessment, but also sufficient and appropriate information to advise the lender and/or trustee and/or any authorised mortgage insurer of property specific and market related risks associated with mortgage lending on the property. This does not merely provide "point in time" information but also forward looking advice to the client on the
period of initial exposure.


As the report is a pro forma report, it should present its information in concise brief pertinent facts, points and statements rather than detailed statements. Do not include that which is not significant to the client and the purpose of the valuation. However, inherent and external features that impact significantly on the property should be noted.

The report should not contain generic statements that add little real worth to the individual report. The format has been designed to suit a majority of situations. Where required, the "Comments" section can be expanded to cover less common properties and "one off” situations. While the first page is fixed in length, some fields on the second page have the capacity to expand and create an extra page (or more) if needed.


Information to be provided in the report under each main section's sub headings is outlined briefly below in those instances where some clarification may be warranted. There are minor form variants for strata and proposed dwellings/extensions/renovations, and for properties subject to long term lease. Some label variations are available to suit particular situations, eg 'built about'/'year built', while others only appear if relevant, eg 'actual rent'. A 'vacant land' variation deletes a number of headings.


The lending organisation's name. Where parties other than the lender (eg lender's mortgage insurers and securitisers) are required to be noted on the report, these will be inserted at the end of the document.


Provide field labels relevant to those used by the lender.



Street Address, including state/territory and Postcode.


Legal Description of parcel(s) of land.


Type, extent and location of encumbrances or restrictions.


Shown using convention of frontage/rear then one side/other when the dimensions are irregular.


Status of zoning and name of zoning scheme/plan (LEP).


Local Government Area name where applicable.


Broad type classification eg Dwelling, Residential Unit, Duplex, Vacant Land, Other.


Include sleepouts or a study if it can be used as a bedroom but at the discretion of the valuer.


Include ensuites.


To alert the lender to situations where main building is not used for its designed purpose.


"About" is used more often as the exact year built is often not readily ascertainable. An alternative label "year built" is available for selection in instances where the exact year is known. “Circa” is a useful term for historical buildings.


Aims to alert the lender to the possible need for an updated survey if addition(s) made since most recent survey available to lender or its solicitor.


Noted in instances where rent is being paid and is readily ascertainable. 'Until' indicates the expiry date of the current term on the tenancy/lease. These are inserted in the report only when applicable. Where a lease is for a term exceeding six months, this detail should be included. The market value assessed should reflect this lease and the valuer should also provide a separate Vacant Possession Basis value.


Rounded to one decimal place. Practical use of most measuring systems will not produce results reflecting any greater accuracy. In many instances the nearest whole number will be realistic. Outdoor areas include areas of open verandahs, patios, pergolas, porches, etc. Their individual areas are aggregated for the purpose of these reports.

See marketability


Do any heritage issues, either adverse or beneficial affect the property? Requires a 'Yes' or 'No' response. If 'Yes', further comment required over page.

See environmental issues

See contamination


List significant items only, which if not attended to, could cause significant deterioration and loss in value or could have a significant adverse effect on marketability.

Where the total cost is significant, say more than $5,000, the lender will need tc be informed as it could affect the borrower's cashfiow and ability to meet repayments. (A more detailed list may be included in the 'Additional Comments' section if necessary).

The report is not intended as a structural or building survey report though the Valuer may report on observed defects or other matters of concern. 'Indicative Cost Estimate' is a guide or allowance only pending a qualified builder's or trades person's quote.

The 'Existing Property' value reflects the current condition. Where there is an 'Indicative Cost Estimate' shown for Essential Repairs, a 'Value after Repairs' can be provided immediately below the current 'Market Value'.

TBE (To Be Erected)

TBE will show and applies only where a building project is involved, ie a new building. A separate heading is available for an extension or substantial renovation. The valuation provided in each instance will be on the basis of 'As if Complete'. In each case builder's name and tender details should be shown.


This is the Valuer's estimate of the cost of the project under contract builder conditions. The purpose is primarily to identify if the tender is in line with market costs and if any significant items have not been included. It is not expected that a detailed costing will be conducted. An overall rate per square metre check weighted for variable factors will often be adequate for the purpose. Incentives should be excluded. If the Check Cost is significantly different to the tender, the possible reasons and risks should be explained in "Additional Comments".


The Valuer should indicate what information has been supplied including an indication as to whether the plans and specifications sighted have been "Council” or relevant authority “approved".

See risk analysis

See valuation and assessments summary


It might be noticed that no provision for a security recommendation is included in the report. The decision as to the suitability of the security is a commercial decision for the lender. That decision may not only be based on the content of the report but may also extend to factors beyond the property itself.

It is not normally appropriate for the Valuer to recommend a loan to valuation ratio (LVR) or percentage to advance. However, if a lender specifically requires either a security recommendation or an LVR, it could be included in the additional comments section.


The recommendation should only include those certificates and documents considered essential for the particular property to ensure the value ascribed to it is confirmed. There should not be an "automatic" list; only after individual consideration should they be included.

Some documents (whether nominated by the valuer or not), may reveal matters not disclosed in the valuer's report. If they might impact on the value, marketability or risk analysis, they should be referred back to the valuer for further consideration, comment and confirmation or otherwise of the valuation.

While the report may identify or comment on various aspects to alert the reader to various issues, it does not substitute for recommended reports by appropriate experts, specialists or authorities.


The certification relates to personal inspection of the property by the signing valuer, carrying out of the assessments, and disclosure of conflict of interest and financial interests.


The certification also notes that the date of inspection Is also the date of valuation.


The report includes a standard restriction as to user and purpose. If the report is passed to other parties, it may not be used or relied upon by them or used for any purpose. It further notes that the report is not a structural survey report.


The Valuer will be the person who inspects the subject property and makes the assessments. That person must be appropriately qualified and experienced in accordance with the current requirements of the Institute or any higher level requirements of the lender. It is not acceptable for a valuer who has not personally inspected the property and carried out the necessary research, enquiry and assessments, to sign as 'valuer'. (However, a valuer who has not carried out these tasks may authorise a report for issue   see below.)


This is included to address instances where a director of the valuation firm is required by the client to also sign the report. A person signing in this capacity is merely authenticating the report as from that firm. It should not be construed as endorsing or consigning the valuation.

This would be inappropriate unless the cosignatory had, at the date of valuation, also inspected the property and been actively involved in the research and assessments. As a safeguard, the person authorising may choose not to include professional qualifications so as to avoid giving the false impression of being a cosignatory to the valuation.


The Firm ID is a unique, pre set, identifier in each copy of the Propertypro software. The Firm ID number system could be adopted by the lender as the identifier for that firm. If adopted widely it would have benefits for firms in being able to quote a consistent number for each lender.


Provision is also made for a client allocated valuer (or firm) number to cover instances where the client does not wish to use the preset identifier and supplies a different number.

See land - propro

See building - propro


A list of the Prime Cost Items preferably starting with those in the kitchen, then laundry, bathroom(s), toilet and others servicing the whole building such as hot water service, air conditioning and ducted vacuum cleaner.

It is not meant to cover all items that might be included in a specification as 'Provisional Cost' items eg wall and floor tiles, door furniture, etc. These can, if unusual or particularly expensive, be included in Fixtures and Features.


A list of built in items (such as cupboards and robes) and main feature finishes (such as non wet area tiled floors and wood panelling).

See ancillary improvements

See sales evidence & market - propro


Any Risk Ratings of '4", or "5" or the existence of three or more '3' Risk Ratings from Section 2 'RISK ANALYSIS' MUST be explained here. Additional comments can be made about the content of other sections of the report but it should be comment that enhances or elaborates on what has already been provided and not merely repeats what has already been stated. This section can be expanded on to another page if necessary. It can also be used to explain any unusual aspects that the format does not specifically address.

It is the Valuer's responsibility to ensure that the client is adequately informed. A balanced view of the property and market should be presented. Adverse aspects should not be overemphasised nor should favourable features be exaggerated.

Comments can be in either narrative or dot point form.


This section appears only if selected. It provides brief comment on issues specifically required by some mortgage securitisers and conveniently groups them under one heading even though some will have been addressed elsewhere in the report. Where any of the statements are adverse, they should be further commented on in section 8 additional comments.

Statements on these issues are based on observations on site and where necessary, appropriate verbal enquiries without the benefit of searches, surveys, etc. The valuer reserves the right to review the valuation and the report if the lender's searches and enquiries reveal contrary conditions or any matters not addressed therein.


This section appears only if it contains information. If the instructing Organisation/Lender requires the report to nominate additional parties who may rely on the report, they can be stated in this section.


If parties entitled to rely on a report are unclear on any aspect of its content, or consider that inadequate information has been provided, the valuer should be contacted before acting on the report. If additional information is supplied to clarify or enhance the report, an amended report should be issued with a note that the original report is withdrawn and should be returned to the valuer. There should be no additional fee unless the valuer was incorrectly instructed in the first instance.


The report should be accompanied by a coloured photograph of the front (or other appropriate) elevation of the property unless the Client directs that one is not required (in which case a photo should be taken and retained on file or electronically stored).

Where significant adverse features are apparent it may be appropriate to provide additional photos showing relevant detail. These may include features nearby which impact on the property.

See restricted comment – valuation report



Some of the information provided in the report may be obtained by expedient means or from sources with no evidentiary value, rather than applying, paying and awaiting receipt of appropriate official documentation such as a solicitor would request in carrying out a conveyance or creating a mortgage.

This is not only to expedite the Valuer's process, but also to reduce duplication and save extra expense. Sometimes a report will provide information, which documentation or certificates subsequently obtained by the lender or its solicitor reveal to be either incorrect or incomplete or not commented upon at all in the report. When any of these occurrences is discovered by subsequent checking, it would be appropriate to refer the matter back to the Valuer for further comment and advice as to how it affects the valuation and security assessment.


Matters reported in the Valuation and Security Assessment Report which the Valuer assumes the lender and/or its solicitor will confirm or ascertain by checking appropriate documentation or certificates include:

See information held on file

See further notes - propro

See valuation report 2

The report should only answer the client's instructions and the valuer should not volunteer any extra information unless it can be implied from the instructions. It should not include other opinion, data, or values not pertinent to the subject valuation. The report should include ALL correspondence that has been entered into concerning the valuation, as this will protect the valuer if a dispute arises over the type of valuation provided.


The instructions become the objectives of the report. It is a good idea to dissect the instructions into parts, with appropriate headings and use those headings in the report. In this way the valuer knows that the report fully covers and meets all of the objectives of the instructions.


When the valuer is asked to provide an investment or land use report he/she is determining whether or not the existing or proposed use is the highest and best use. This will require the consideration of a number of land use options. The first is the "as is" land use which becomes the "datum" or "benchmark" use. Other possible land uses are considered against the market value of the benchmark use.

However, problems arise when the valuer is asked for information outside the gambit of market valuation such as whether or not the particular land use has long term viability.

The valuer should be cautious about pontificating about a land use which he/she does not have expert knowledge. It is better to refer the client to published trade forecasts or some article written by an expert in that field. The problem with such forecasts is that the long term viability of a particular land use is usually a function of the expected growth of Australia's economy. That is, the client is asking the valuer to predict Australia's Gross Domestic Product or preferably, State Domestic Product in the long run. However, the valuer does not have the expertise to do this.

It is better for the valuer not to provide such unnecessary information. This can be done by explaining to the client that the value arrived at is "market value" which incorporates (through the capitalization rate) the market's assessment of the long run viability of the land use. The market's opinion is far more important than that of the valuer as it will largely, determine the expected resale value of the subject property and this is usually, the client's main concern.