How long is a property valuation valid for?

A property valuation does not have a fixed legal expiry, but in practice it is generally treated as current for about 90 days, or roughly three months, particularly for lending. A valuation is a snapshot of market value as at a specific date, so how long it stays reliable depends on what you need it for and how quickly the market and the property change.

How long is a property valuation valid for?

For most everyday purposes, a valuation is considered current for around 90 days. The Australian Property Institute's professional conduct rules point to an effective life span of about 90 days, and lenders have largely adopted that as the standard window for a mortgage valuation.

That number is a guideline, not a hard expiry printed on the report. A valuation does not suddenly become worthless on day 91, but the older it gets, the less confident anyone relying on it can be that it still reflects the market. The right way to think about it is currency: a valuation is most useful while it still fairly represents today's value.

Why valuations have a limited lifespan

A valuation reflects market conditions and comparable sales at a single point in time, for a specific property type and location. Property markets move, sometimes sharply within weeks in high-demand areas, so a figure that was accurate three months ago may no longer hold.

That is why every professional report states an "as at" date. The valuer is not saying the property will always be worth that figure, only that it was worth it on that date, based on the evidence available then. As sales evidence ages and new sales come through, the report gradually stops representing the current market.

Bank and mortgage valuations: the 90-day rule of thumb

When you are borrowing or refinancing, the lender relies on the valuation to set the loan-to-value ratio, so they want it to be current. Most lenders treat a valuation as valid for about 90 days, and if your application drags on past that window, the bank may ask for a fresh valuation or a revaluation before settlement.

In a fast-moving market, a lender may treat an even shorter period as current, and a valuation ordered for one bank often cannot simply be handed to another, because lenders usually require a valuation commissioned through their own panel. If you are comparing a valuation to a bank's figure, our guide to a valuation versus a bank valuation explains why they can differ.

Valuations for tax and CGT: tied to a specific date

Valuations for tax work differently. For capital gains tax, cost base or SMSF purposes, the market value has to be established as at a particular date, such as the date you acquired or disposed of the property, the date of a transfer, or the date an asset entered your SMSF. The valuation is anchored to that required date rather than to a rolling 90-day window.

This is also why a retrospective valuation is possible and often necessary: a valuer can assess what a property was worth at a past date using the evidence from that time. For tax, the question is not "is the valuation still current" but "is it as at the correct date and properly evidenced". Our guide to property valuation for capital gains tax covers this in more detail.

Family law and legal matters

Legal matters can run for months or years, and a stale valuation can lead to an unfair outcome if the market has moved. For family law settlements in particular, it is common to obtain an updated valuation as close as possible to a mediation or court date, so the figure reflects current conditions rather than the market as it stood when proceedings began.

What shortens a valuation's useful life

Several things can make a valuation date faster than the usual window:

• A moving market. Rapid price growth or a downturn in your segment can outdate a valuation within weeks.
• Changes to the property. A renovation, extension, subdivision or significant damage changes the property, so an earlier valuation no longer describes it.
• A different purpose. A valuation prepared for one purpose or lender may not be accepted for another, even if it is recent.
• New sales evidence. A cluster of recent comparable sales at different prices can shift the picture the report was based on.

When to get a new valuation

As a simple guide, treat a valuation as current for about three months for lending and general decision-making, get a fresh one if the market has clearly moved or you have changed the property, and for tax or legal purposes make sure the valuation is as at the correct date rather than simply recent.

If you need a current market valuation, or a retrospective one as at a specific past date, Valato prepares independent, evidence-based reports across Australia. You can compare the options or order in a couple of minutes.

Frequently asked questions

General information only: This article is general in nature and does not take into account your individual circumstances. It should not be relied on as tax, financial or legal advice. Speak with a qualified professional before making decisions about your property, tax position or investment strategy.