One day, you may need a valuation report for your property in Kuala Lumpur or any other location for specific purposes such as Intended Purchase, Intended Sale, Real Property Gains Tax (RPGT), Inheritance or Estate matters, Accounting, Internal Management, Litigation, Fire Insurance Value, and many other purposes to fulfil your needs.
The question then arises: How do you select a professional and capable property valuer in Kuala Lumpur to meet your needs?
Below is a recommended (but not exhaustive) checklist for your review prior to engaging the service.
Qualification and Registration
Ensure that the valuer in Kuala Lumpur and the valuation firm are registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981.
You may conduct a search through the official website:
https://lpeph.gov.my/search-listing
Experience and Exposure
The valuer in Kuala Lumpur must have sufficient knowledge and experience in the Kuala Lumpur market.
Almost all valuers in Kuala Lumpur would have sufficient track records in valuing local properties. However, this may not be the case for specialised properties such as shopping complexes, hotels, office towers, large pieces of development land, ongoing development projects, plantations, or estates such as durian farms.
For certain purposes of valuation, the valuer’s experience is particularly important, as different valuation purposes may require additional processes and considerations. Examples include Litigation, Compulsory Land Acquisition, Fire Insurance Value, and Financial Reporting Standards (FRS) / Accounting purposes.
A valuer’s experience may determine the completeness of the valuation report, the accuracy of the assessed value, and the competency in negotiations to fulfil the purpose of the valuation.
Independence and Conflicts of Interest
Prior to engagement, you should ensure that the valuer in Kuala Lumpur has no conflicts of interest in accepting your appointment, although it is primarily the valuer’s professional duty to assess and disclose any such conflicts.
The valuer must be independent from any past, current, or foreseeable conflicts in undertaking the assignment.
Conflicts of interest may arise if the valuer in Kuala Lumpur is acting for more than one party (i.e., you and another party), or valuing a property that the same valuation firm previously sold in the capacity of an estate agent, among other situations.
The valuer must act ethically, remain independent and transparent, and make the necessary disclosures to the client or potential client before accepting the engagement. This is clearly specified under Malaysian Valuation Standard 1 (MVS 1) issued by BOVAEP. A copy may be purchased from BOVAEP.
Basis of Valuation and Limitations
Prior to engaging a valuer in Kuala Lumpur, you must be clear about the basis of valuation to be adopted and the limitations applicable to the assignment.
The general limitations of valuers are provided in Malaysian Valuation Standard 19 (MVS 19).
Professional Fee
To avoid possible disputes, the professional fee should be agreed upon in advance.
As far as possible, the agreed fee should be an all-inclusive fee without any hidden charges, unless clearly stated in the appointment letter or quotation letter.
Valuers charge their fees based on the 7th Schedule of the Valuers, Appraisers and Estate Agents Rules (Rule 48). You may obtain further information at:
https://lpeph.gov.my/fees
Turnaround Time and Scope of Valuation Report
You should know when your valuer in Kuala Lumpur will inspect your property and when you can expect to receive the draft report and final valuation report.
It would also be beneficial to understand the contents of the valuation report. In general, a valuation report will contain:
Executive Summary
Terms of Engagement
Subject Property
Purpose of Valuation
Date of Inspection
Date of Valuation
Definition of Market Value / Forced Sale Value / Fire Insurance Value (if applicable)
Title Particulars
Location
Description of the Subject Property
Occupancy
Services
Assessment of Property
Planning Control
Method of Valuation
Evidences of Value
Opinion of Value
Appendices / Exhibits / Annexures (where applicable)
You may also discuss with your valuer in Kuala Lumpur if you require any additional content or customisation.
Frequently Asked Questions
How can I verify whether a property valuer in Kuala Lumpur is properly registered?
You should ensure that both the valuer and the valuation firm are registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981.
Registration can be verified through BOVAEP’s official online search portal.
Why is experience important when selecting a property valuer?
While many valuers have experience in residential properties, specialised properties such as shopping complexes, hotels, office towers, development land, plantations, and ongoing projects require specific expertise.
Additionally, certain valuation purposes such as Litigation, Compulsory Land Acquisition, Fire Insurance Valuation, and Financial Reporting (FRS / MFRS) require additional technical knowledge and procedural understanding. An experienced valuer improves accuracy, report completeness, and suitability for the intended purpose.
What should I know about conflicts of interest before appointing a valuer?
A valuer must remain independent and free from conflicts of interest. Conflicts may arise if the valuer:
Acts for multiple parties in the same transaction / valuation
Previously sold the property as an estate agent
Has undisclosed relationships affecting impartiality
What does “basis of valuation” mean, and why is it important?
The basis of valuation refers to the definition of value adopted in the report, such as Market Value, Forced Sale Value, Fire Insurance Value, etc.
Different purposes require different bases of valuation. It is important to clarify this at the outset to ensure the valuation report meets your intended objective and regulatory requirements.
What should I clarify regarding fees, timeline, and report contents?
Before engagement, you should confirm:
The agreed professional fee (preferably all-inclusive and clearly stated)
The inspection date and expected report delivery timeline
The scope and contents of the valuation report
Clear agreement on these matters helps prevent misunderstandings and ensures a smooth engagement process.
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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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