Foreign investors continue to find attractive opportunities in the Malaysian property market. However, as a foreign buyer, you may have limited knowledge of local market conditions, land laws, regulations, and statutory requirements.
Engaging a professional valuation firm in Malaysia is essential to mitigate acquisition risks and ensure that you make well-informed investment decisions.
What is Valuation Report?
Valuation report is a written document of a valuation. It must conform to the requirements of MVS 8 of Malaysian Valuation Standards.
In this guide, Agility Valuers & Property Consultants walk you through the step-by-step process of obtaining a professional property valuation in Malaysia.
What is the purpose of Valuation?
Before appointing a valuer, clearly identify your purpose.
For foreign buyers, valuation is typically required to:
Determine the fair market value of a property
Support purchase decisions and negotiations
Avoid overpaying in an unfamiliar market
A professional valuation report provides an independent opinion of value, giving you stronger bargaining power when dealing with sellers or agents.
How to engage a Registered Valuer in Malaysia?
It is crucial to appoint a registered valuer or valuation firm accredited by the Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia (BOVAEP).
All valuers must be licensed under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981.
You can verify registered valuers here:👉 https://lpeph.gov.my/search-listing
Engaging a registered valuer ensures:
Compliance with Malaysian regulations
Professional and ethical standards (Malaysian Valuation Standards)
Agility Valuers & Property Consultants is registered with the BOVAEP and several professional bodies.
What are the Required Documents?
Your appointed valuer will typically request the following documents:
Sale & Purchase Agreement (SPA)
Title or strata title (if issued)
Property address
Floor plans
Tenancy agreement (if the property is rented)
Quit rent and assessment receipts
Purpose of valuation
Addressee of the valuation report
Providing complete documentation helps speed up the valuation process.
Site Inspection and Property Assessment
A physical inspection is mandatory.
The valuer will inspect:
Property condition and finishes
Building layout and accommodation
Location and accessibility
Surrounding developments and neighbourhood
This step ensures an accurate and reliable valuation.
What is the Valuation Methodology used by the valuer?
Professional valuers in Malaysia apply recognised valuation approaches, including:
Comparison Method (Most common – based on recent transactions of similar properties)
Income Method (Used for rental or investment properties)
Cost Method (Applied to specialised or unique properties)
Understanding these methods helps you better interpret the valuation outcome.
Receive Draft and Final Valuation Report
The valuation process typically takes 1 to 2 weeks, depending on the complexity of the property and availability of documents.
You may review the draft report and provide feedback before the final version is issued.
A standard valuation report includes:
Executive summary
Terms of engagement
Purpose of valuation
Property details and title information
Market analysis and evidence
Valuation methodology
Final opinion of value
Supporting appendices
How much is the Valuation Fee?
Valuation fees in Malaysia are regulated under the BOVAEP Scale of Fees.
Key points to note:
Fees are based on the market value of the property
Discounts may be applicable
Additional costs include:
Disbursements
Attendance fees, if applicable
Service tax (8%)
Always confirm the all-inclusive fee quotation before engaging the valuer.
Why Foreign Buyers Should Engage a Professional Valuer in Malaysia?
Engaging a professional valuation firm in Malaysia helps you:
Reduce investment risks
Ensure compliance with local laws
Gain accurate market insights
Strengthen negotiation position
Frequently Asked Questions
Do foreign buyers need a property valuation in Malaysia before purchasing?
Yes, foreign buyers are strongly advised to obtain a professional property valuation before purchasing in Malaysia. A valuation report provides an independent assessment of the property’s market value, helping you avoid overpaying and strengthening your negotiation position. It also ensures you are making an informed investment in an unfamiliar market.
How do I find a registered property valuer in Malaysia?
You should only engage a valuer registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia (BOVAEP). Registered valuers comply with Malaysian laws and professional standards. Alternatively, you can contact a professional valuation firm directly for guidance and a quotation tailored to your property.
How long does it take to complete a property valuation in Malaysia?
A typical property valuation in Malaysia takes approximately 1 to 2 weeks, depending on the type of property, availability of documents, and inspection arrangements. For urgent cases, some valuation firms may offer expedited services upon request.
How much does a property valuation cost in Malaysia?
Valuation fees are regulated under the BOVAEP Scale of Fees and are generally based on the market value of the property. Additional costs are disbursements and 8% service tax (SST).
It is recommended to request an all-inclusive quotation from your valuer before proceeding.
What documents are required for a property valuation in Malaysia?
To ensure a smooth valuation process, you will typically need to provide:
Sale & Purchase Agreement (SPA)
Title or strata title
Property address and floor plans
Tenancy agreement (if applicable)
Quit rent and assessment receipts
Providing complete documentation helps speed up the process and ensures a more accurate valuation.
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This blog / insight is based on Agility Valuers & Property Consultants / Agility Research (AVPC)’s current understanding and insights about the related topic in the current property / real estate market context. Agility Valuers & Property Consultants / Agility Research (AVPC) makes no guarantees, representation or warranties of any kind, expressed or implied, regarding the information including but not limited to, warranties of content, accuracy and reliability. Interested parties should undertake their own inquiries as to the accuracy of the information. Agility Valuers & Property Consultants Sdn. Bhd. / Agility Research (AVPC) excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss or damages arising therefrom.
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For more information, please contact:
Sr Yap Kian Ann
Tel: 603-9544 2694 Email: yap@agilitymy.com
HP : 6012-378 5811 Website: www.agilitymy.com
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