Valuations with Limited or No Physical Inspection by a Valuer
Clients have always had the choice to request a Valuer to provide a limited (or restricted) physical inspection of the property, or no physical inspection of any kind, of the property as a valuation.
It is critical in all cases that the instructions from the client clearly details the form and extent of the inspection that is desired and expected from the Valuer.
In accordance with Rule 11 of the API Code of Professional Conduct, where the Valuer has not fully inspected, or there is no physical inspection, the report/advice must include all the following;
- details the extent/form of the physical inspection (or otherwise) of the asset personally undertaken by the Valuer;
- commentary on the source of the information included in and relied upon;
- commentary on any assumptions made and any limitations, conditions and qualifications of the report/advice; and
- the effect that not fully inspecting the asset or not inspecting the asset may have on the opinion of value.
Please note, a limited or non-inspection of the property by the Valuer, may result in the opinion of value provided not meeting the definition of Market Value, as defined in the IVS, and may be an indicative assessment only.
Any enquires, please email the Standards team.
Posted on July 18, 2024