The API is pleased to publish another of our standards series articles which are designed to provide plain English explanations of individual API Rules, specifics topics or reminders about principles and concepts.

The API provides the following to reinforce the concepts and principles contained in Rule 12 of the Rules of Professional Conduct which covers the minimum requirements for desktops performed by API Valuers.

This article is intended to serve as a reminder for Valuers, and a resource that they can use to educate their clients and the public as to the enquiries, investigations, procedures and processes undertaken by Valuers when providing desktop reports.

Desktop reports are also known as indicative assessments, remote valuations, virtual inspection reports, indicative valuation reports, remote assessments, hybrid AVMs, valuer assisted AVMs, remote market value reports and numerous other names, however they are all contain the Valuer’s opinion of value provided without the benefit of any form of physical inspection or the asset by the Valuer.

Desktop Process is …

This article relates to the desktop process¹ undertaken by API Valuers² when providing a desktop report³ of real property assets, but excludes valuations undertaken for rating and taxation purposes. Rating and taxation valuations are completed in accordance with legislation for the jurisdiction in which the property is situated and the “Statutory Valuations” rule in the API Rules of Professional Conduct. (“Rules”)

Where an included term is used as defined under the Rules it is shown in italics and the meaning for the interpretation and understanding of this article is included as footnotes. Other defined terms used within, and for the purposes of, this article are expressed as title case terms and also included as footnotes for reference.

When a Valuer provides their opinion of the value⁴ of a real property asset, as at a specified date, without any form of physical inspection of the asset by the Valuer this is a desktop⁵.

An indicative value⁶ is not and should not be construed to represent the Valuer’s opinion as to the market value of the subject property as defined by the International Valuation Standards Council and adopted by the API.

A desktop includes enquiries, investigations, procedures and processes, to inform the Valuer of sufficient characteristics and qualities of the subject property, market transactions and market sentiments that are relevant to the indicative value of the subject property, as at the relevant assessment date.

A Valuer is an individual possessing the necessary qualifications, ability and experience to undertake a desktop process in an objective, unbiased, ethical and competent manner.

The desktop process involves obtaining and compiling sufficient appropriate facts and data to inform the Valuer’s reasoning and analysis to enable the Valuer to provide their qualified opinion of the value of the subject asset. The indicative value is the Valuer’s qualified opinion of the most likely price at which the subject property may transact, in a hypothetical transactions, as at the relevant assessment date.

The desktop process requires the Valuer to apply Professional Judgement⁷ and Professional Scepticism⁸, and involves the Valuer obtaining, compiling and appropriately verifying relevant facts and data to properly inform the Valuer’s reasoning and analysis.

Unlike a valuation process⁹, a desktop process does not involve any form of physical inspection of the subject property by the Valuer.

The enquiries, investigations, procedures and processes conducted by the Valuer when undertaking a desktop include, but are not limited to:

  • enquiries relating to the subject property and the market in which it is most likely to transact to enable the Valuer to be conversant with all relevant information (facts and data);
  • analysis of market transactions and all other relevant information to identify metrics that can be applied by the Valuer to inform their qualified opinion;
  • computation and calculations which records the Valuers reasoning and analysis, to assess the differences between the market transactions and the subject property, to arrive at the Valuer’s qualified opinion, in the form of an indicative value, of the most likely price that the property may transact, in a hypothetical transaction, as at the assessment date; and
  • preparation and completion of a desktop report appropriate for the subject property and the agreed purpose of the desktop report.

Prior to undertaking a desktop the Valuer must have the appropriate level of skill, knowledge and experience gained from undertaking valuations¹⁰ involving physical inspections, on the same or similar assets in the locality and relevant market.

A credible desktop report containing the Valuer’s opinion of the indicative value of the subject property and based on relevant facts correctly interpreted and verified by the Valuer, is the result of a diligent and competent desktop process.

If there are any queries in relation to this article, please contact [email protected].

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Footnotes:

  1. “desktop process” means an evidence-based process which results in a desktop report containing an indicative value of a tangible asset as at a specified date, based on the Valuers knowledge, research, expertise and experience together with “relevant data and inputs” (information) relating to the asset provided by other parties or sourced by the Valuer, but does not include a physical inspection (of any kind) of the asset by the Valuer. (API Rules of Professional Conduct)
  2. “Valuer” means a Member who hold API certification of CPV, CPV (Residential) or RPV. (API Rules of Professional Conduct)
  3. “desktop report” means a report that that has been prepared by a Valuer following a desktop process. (API Rules of Professional Conduct)
  4. “value” means the Valuer’s opinion of value, in monetary terms, for a tangible asset as a result of a valuation process or a desktop process as at a specified date. (API Rules of Professional Conduct)
  5. “desktop” means an evidence-based desktop process for assessing the value of a tangible asset as at a specified date but does not include a physical inspection (of any kind) of the asset by the Valuer. (API Rules of Professional Conduct)
  6. “indicative value” means a qualified opinion by the valuer of the value of a tangible asset where the scope of work is limited or restricted such that the Valuer does not undertake all the necessary enquiries, investigations, procedures and processes to fully inform the Valuer’s reasoning and analysis that is a prerequisite for a valuation. (API Rules of Professional Conduct)
  7. “Professional Judgement” means the use of accumulated knowledge and experience, as well as critical reasoning to make an informed decision. (IVS 2025 edition)
  8. “Professional Scepticism” means the valuer has an attitude that includes a questioning mind and critical assessment of valuation evidence. (IVS 2025 edition)
  9. “valuation process” means all the necessary enquiries, investigations, procedures and processes including the physical inspection of the tangible asset by the Primary Valuer, which is a pre-requisite for a valuation, required to fully inform the Valuer’s reasoning and analysis in accordance with the practice accepted as proper by the API. (API Rules of Professional Conduct)
  10. “valuation” means an established evidence based valuation process for assessing the value, including but not limited to market value and market rent, of a tangible asset as at a specified date following a physical inspection of the asset by the Primary Valuer. (API Rules of Professional Conduct)