When it comes to SMSF-held property, the ATO has clear expectations around how market valuations should be prepared. To ensure compliance, any valuation must be supported by objective and reliable data--not just opinion.

In particular, if a market valuation is provided by a real estate agent or similar service, the report must include details of the comparable sales used to support the value. This requirement is outlined in the ATO's guidance on SMSF asset valuations, which you can view here: https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-administration-and-reporting/guide-to-valuing-smsf-assets

The ATO also makes it clear that a range of evidence should be considered unless the property was recently purchased at arm's length. If you are relying solely on a real estate agent's appraisal, it's essential that the valuation sets out the comparable sales data, so the assessment is firmly grounded in actual market evidence rather than a subjective estimate.

If your agent has provided a valuation letter without including these details, it's important to request an updated version that lists the comparable properties. Doing so will help ensure your SMSF remains compliant with the ATO's valuation requirements.