Having given a brief meaning of Property Valuation, now let's look at its importance.

1. Property Valuation helps to Ascertain the Actual Worth of a Property: Valuation will help the buyer of a property know whether the price mentioned by a seller/owner of a property is appropriate, likewise also the seller would be able to know if his/her property is actually worth the price he/she is offering it in the market.

2. Mortgage or Loan Process: If a buyer is planning to take a loan from the bank for any purpose, the bank will first conduct what is called Property Valuation on the property that the client wants to use as collateral for the loan and then set a seal on the loan amount. Different mortgage terms and conditions of the loan depend on the final property valuation report.

3. Insurance Purposes: DUE to unforeseen hazards or accidents one would want to ensure their property and for such process, Property Valuation comes in. The accurate property valuation ensures that the coverage cost is reasonable and the buyer does not run the risk of low insurance coverage.

4. In the Case of Rental Purpose: You will find out that many property buyers in the Real Estate market plan to buy a house/flat or even a shop for rental purposes and we definitely know that the motive behind such investment is to create a continuous income generating option. Now valuation would aid the buyer to compute the market value of the property and this will be the basis of anticipating a monthly rent of 6% to 10% of the total calculated value. Plus, it will also help to throw light on the prevalent rental rate in the locality and assess the viability of the property with regard to its rental potential.


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