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They are THE industry body - a pretty hard task master but any one who isn't a member just doesn't get much work. It is not obligatory to belong to the API however when valuing mortgages, insurable values, leases, market rents etc they require that the valuer be a CPV. Office of fair trading...

Valuers are generally required to be members of the Australian Property Institute and be a CPV.

Tactically, let it go to auction but with a his reserve. If it reaches his figure great if not agree that you can purchase at $x above the highest negotiated amount (but still below his figure). Remember that you only have to pay half not for the whole of the property.