Valuation Reporting and Professional Communication
What the exam tests
This domain tests whether you can write a clear, defensible valuation report and communicate advice without misleading the reader.
Core rules
- A valuation report should identify the client, purpose, asset, basis of value, valuation date, currency, extent of investigation, assumptions, special assumptions, method, reconciliation and any limitation.
- Distinguish facts, assumptions and special assumptions. A special assumption is one that the valuer accepts as true even if it is not; it must be disclosed and its effect explained.
- State the compliance framework, sign and date the report, and ensure the report is not misleading by omission.
- Expert evidence must be independent, reasoned and within expertise. Avoid advocacy.
- Communication should be concise and structured: executive summary, scope, market and property analysis, valuation, and qualifications.
Worked example
A draft report says only Value: RM5 million. It is defective because it omits basis, date and purpose. A compliant statement would read: Market Value as at 31 December 2025, for secured lending purposes, is RM5.0 million, subject to the special assumption that the lease is renewed for 99 years and subject to inspection and title verification. The reasoning is shown: the figure is tied to a defined basis, a date, a purpose and a disclosed assumption.
Traps
Boilerplate limitations that contradict the opinion; missing valuation date; confusing market value with insurance replacement cost; unsupported assumptions; and presenting a range without explaining why.