Valuation issues paper

Proper consideration of post valuation date knowledge/events

Relevant information regarding the site on and after the valuation date may not have been properly considered when valuing properties. Where post valuation information exists that clarifies the state of the property as at the valuation date then this information may be considered in the valuation as it is expected that a prudent purchaser would undertake appropriate investigation to limit their risk. Where post valuation information changes the state of what existed as at the valuation date then this information should not be used, for example a development application has been lodged and approved.

Especially, post-valuation date knowledge and events which can enhance values have been utilised without commentary or inclusions of relevant risk weightings or other reasonable adjustments.

ATO position

Post valuation date impacts can be considered however these need to be reasonable, with an expectation of evidence that these existed on valuation date. If due consideration is not given to relevant site information at or after valuation date then the value may be overstated or understated by a considerable amount. Commentary needs to accompany the use of post valuation date information to explain why it is reasonable to take that information into account.