Importance of valuation process

There is a lot of ignorance on the importance of engaging an estate surveyor and valuer in the valuation process, and not many Nigerians are aware that the estate professional is the only one that can ascribe value to a property. Property valuation is very essential for economic development, in addition to the fact that […]

There is a lot of ignorance on the importance of engaging an estate surveyor and valuer in the valuation process, and not many Nigerians are aware that the estate professional is the only one that can ascribe value to a property.

Property valuation is very essential for economic development, in addition to the fact that it has to do with the monetary estimation of the worth of a property, which must be done by a professional valuer.

The valuation date of the valuation is essential because it is the value at the date of the valuation.

The date is important because anything can happen to the property on another date after the valuation was carried out, which can increase the value or reduce it. The significant validity period of a valuation report is 2 years, adding that the report expires after 2 years and needs to be revalued.

Valuation of property can be used for different purposes such as a mortgage, rating and taxation, compensation, among others.

For a business to get a loan from a bank, a collateral must be presented, which is a property.  The property will need to be valued by a Valuer to ascertain its worth in comparison to the amount needed by the borrower.

After that, if it is commiserated and meets all other requirements of the bank then he will get the loan.”

Therefore, Nigerians should know that without the valuation of your property, the bank will not give you a loan. Loans help businesses to grow. When businesses grow, it helps the economy to also develop.

ESV. Auta Usurhyel wrote from Abuja