What is Property Valuation?
A valuation is basically an estimation of how much a property is worth. It is an integral part of the property transaction as it plays a crucial part in the negotiating process.
Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value for real property (usually is base on market value).
What does the valuer do?
A Property Valuer is a qualified individual who assesses the value of property. Banks and other lenders use property valuer to conduct valuation to determine the value of property when mortgage loan applications are made and to assess the feasibility of the proposed purchase.
What does the bank value of the property?
Bank value is not same as market value. The reason lenders use valuation firms to appraise a property is simple. They want to make sure that if they need to sell the property in order to recover a bad debt, they will get the loan amount back. The bank has no say in determining what the property is worth.
How does the valuation work?