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Home › Services › Document Guides › Property Valuation

A valuation is an opinion with a date on it — and the purpose is part of the number

People ask what a property is worth as though the question had one answer waiting to be looked up. It does not. A valuation is a reasoned opinion, given by somebody qualified to give it, about a described property, as at a particular date, for a particular purpose — and that last element is not a formality on the cover page. It is part of the question, which means it is part of the answer. What a house would fetch in an ordinary sale, what it would cost to rebuild after a fire, and what a lender would treat as recoverable security are three different questions about one building, and they produce three different figures without anybody being wrong. Which explains the thing families and buyers find hardest to accept: two honest reports on the same property can differ, and before deciding one of them is dishonest it is worth comparing the purposes, the dates and the assumptions, because that almost always accounts for it. Two more corrections are worth making at the start, because both are believed widely and both cost money. The government reference figure published for a locality is not a valuation — it is an administrative benchmark that knows nothing about your particular property. And a price is not a valuation either: a price is what two specific people agreed on one day, for reasons that may have had little to do with the building. Everything below is about getting a report that answers your actual question, and then reading the page that tells you what the figure really means — which is never the page with the figure on it.

From ₹3,500 3 – 10 days Purpose first, figure last Nothing payable in advance
We need a property valued. What should we understand before commissioning one?Start with the fact that decides everything else: a valuation is an opinion, not a measurement. The extent of a plot can be measured and there is one right answer. What the property is worth is a judgement formed from evidence, and two competent people looking at the same evidence can reach slightly different views without either being incompetent or dishonest. That is not a weakness in the exercise; it is what the exercise is. A good report is not one that is certain. It is one whose reasoning you can follow. The second thing to fix, before anybody is engaged, is the purpose, because the purpose is part of the question and therefore part of the answer. What a building would be expected to fetch in an ordinary sale, what it would cost to rebuild it from nothing, and what a lender would regard as recoverable security are three genuinely different questions about the same structure, and they produce different figures for entirely proper reasons. A report prepared for a loan is not a report for an insurance policy, and a report prepared for a family division is not automatically acceptable to a tax authority. Say what the purpose is when you commission, and expect it to be printed on the report. Alongside the purpose sit two more parameters. The date of valuation, because a report speaks as at its date and no other, and because the right date is not always today — after a death, for instance, the relevant date is frequently an earlier one. And who will accept it: a lender, an office or the other side in a family matter may only accept a report from particular people, sometimes on their own format. Ask the recipient before commissioning, because discovering it afterwards means paying for the exercise twice. Two widely held beliefs are worth correcting here because both are expensive. The government reference figure published for an area is not a valuation. It is an administrative benchmark used for certain official purposes, it knows nothing about the condition, position or circumstances of your particular property, and it is neither a ceiling nor a floor on what that property is worth. And a price is not a valuation: what one buyer paid one seller on one day may reflect urgency, a relationship, or simple ignorance on one side, which is why a single transaction is evidence rather than proof. Then the practical part. Give the valuer the documents — the instrument by which the property is held, the approved plan, the identifiers and schedule, the municipal or tax record, and whatever shows the extent — because a valuer working from gaps has to assume, and assumptions weaken a report. Let them inspect properly; a report prepared without an inspection should say so on its face, and one that reads as though the property was seen when it was not is a liability sitting in your own file. Finally, when the report arrives, do not turn straight to the figure. Read the page that sets out what was assumed, what was inspected, what documents were seen, which area was used and what was excluded. That page is what the figure actually means, and it is the page almost nobody reads. One thing to be clear about throughout: a valuation ordinarily assumes that the title is good and unencumbered. That is an assumption, not a finding, and checking whether it holds is a separate exercise altogether.

What the report actually is

Worth pinning down, because the word is used for several different documents and people arrive expecting whichever one they have heard of.

A valuation report is a reasoned opinion of value, set out in writing, by somebody qualified to give it. It describes the property, states what was inspected and what was assumed, explains how the opinion was arrived at, and gives a figure as at a stated date for a stated purpose.

The figure is the shortest part of it and the least interesting. Anybody can produce a number. What makes the document worth its fee is that the number comes with its reasoning attached, so that a reader can see what it rests on and decide how much weight to give it.

Which is also the test of a bad report. Not that the figure is wrong — you usually cannot tell — but that nothing in the document lets you see how it was reached. A page with a number and a signature is not a valuation; it is an assertion with letterhead.

So when you read one, judge it the way you would judge any argument: are the facts stated, are the assumptions visible, and does the conclusion follow from them?

Opinion, not measurement

A distinction people resist, understandably, because they wanted certainty and are being handed a judgement.

Some things about a property are facts. Its extent. Its age. Whether a structure exists. Those can be measured and verified, and a report that gets them wrong is simply wrong.

Value is not in that category. It is an estimate of what would ordinarily be expected in given circumstances, formed from evidence that is always incomplete — because the one thing that would settle it, an actual sale of this exact property today, has not happened.

So the honest version of what a valuer produces is: on this evidence, for this purpose, as at this date, in my judgement. Every qualification in that sentence is doing real work, and a report that omits them is not more confident, it is less complete.

The practical consequence is that a range is often more truthful than a point, and that where a single figure is required — as it frequently is — the reasoning behind it matters more than its last digit.

The purpose is part of the number

The central idea on this page, and the one that dissolves most of the arguments people have about valuations.

Consider one house. What might it fetch if sold in the ordinary way? What would it cost to rebuild the structure from nothing? What would a lender treat as recoverable if it had to be sold quickly? What is a one-fifth undivided share in it worth to somebody who cannot sell alone?

Four questions, one property, four different figures — and none of the four is a mistake. They answer different questions, and the difference between them can be large.

Which is why the purpose is stated on the report rather than mentioned in passing. It tells the reader which question was answered, and it warns them against using the document for a different one.

So decide the purpose before you engage anybody, and say it plainly. “What is it worth?” is not a brief. “What would it be expected to fetch, in an ordinary sale, as at this date” is.

And where a report is being obtained for two purposes at once, say so at the outset. Sometimes one document can serve both. Sometimes it cannot, and it is much cheaper to know that before the inspection than after.

Why two honest reports differ

Families discover this at the worst possible moment and conclude that somebody is being dishonest. Usually nobody is.

Five things move a figure legitimately, and any one of them explains a gap. A different purpose. A different date. A different extent included — one report covering the land and structure, another only the unit. Different assumptions about condition, permissions or access. And different evidence available, because comparable information is not equally available to everybody.

So the first move when two reports disagree is not to accuse. It is to put them side by side and compare those five things. That exercise takes half an hour and it resolves most disagreements without anybody having to be wrong.

Where the five match and the figures still differ meaningfully, you have a genuine difference of judgement, which is a real thing and is dealt with differently — by understanding the reasoning on each side rather than by picking the one you prefer.

And where one report turns out to rest on a factual error, that is neither a difference of opinion nor dishonesty. It is a correction, and it should be raised as one.

Whose report will actually be accepted

A question with a definite answer that people discover far too late.

The recipient of a valuation frequently has requirements of their own: who may prepare it, what it must contain, sometimes the format itself. A lender commonly does. An office may. In a family matter, the other side certainly has a view, even if it is not written down anywhere.

So before anybody is engaged, put the question to whoever will read the report: whose valuation do you accept, and is there a form it has to take? One call, one answer, and it prevents the commonest waste in this subject.

In a family or a dispute, do more than ask — agree the valuer in advance, in writing, with everybody. A report commissioned by one side and presented to the others is rarely accepted whatever its quality, and the money spent on it is usually wasted twice over, because it also hardens positions.

Where two sides cannot agree on one person, agreeing on two, and on what happens if the figures differ, is a workable second best. Deciding that after the reports arrive is not.

The date it speaks as at

A small line on the cover that decides what the document is worth.

A valuation is an opinion as at a date. It does not speak about last year and it does not speak about next month. A report six months old is not wrong; it is simply answering a question about a day that has passed.

There is no general shelf life, and anybody who tells you a figure holds good for a fixed period is describing a convention rather than a fact. Whoever is relying on it has their own view about how recent it must be, which is another reason to ask them first.

The subtler point: the right date is not always today. Where a valuation is needed in connection with a death, a transaction that has already happened, or an event at a particular time, the relevant date is that one — and a report dated today answering a question about then is the wrong document.

Say the date you need when you commission. It changes what the valuer does, because an opinion about an earlier date is formed from the evidence available about that date rather than from what is around now.

Value and price are different things

Conflated constantly, and separating them saves people from two opposite mistakes.

A price is a fact about one transaction: what a particular buyer paid a particular seller on a particular day. It can sit well above or well below any reasonable estimate of value, for reasons that have nothing to do with the property — somebody needed money quickly, the parties were related, one side did not know what they had.

A value is an estimate of what would ordinarily be expected, taking such transactions as evidence rather than as proof.

Which is why a single sale nearby is information and not an answer, and why a valuer looks at several and asks how comparable each really is — same kind of property, similar condition, similar circumstances, near enough in time.

The first mistake is treating one neighbour’s sale as settling the matter. The second is dismissing all evidence because no two properties are identical. The report exists precisely to do the reasoning in between.

The published reference figure is not a valuation

Its own section because it is the most widespread confusion in this subject in India, and it cuts both ways.

Authorities publish reference figures for localities, used for particular official purposes. Those figures are administrative instruments. They know nothing about your property — not its condition, not its position within the locality, not its access, not what has happened around it.

So they are not a ceiling: a property can be worth a great deal more. And they are not a floor in the sense people imagine either: a property in poor condition or with a problem attached is not worth a published figure merely because the figure exists.

Where such a figure is relevant for an official purpose, it is relevant for that purpose, and a valuer will note it. What it cannot do is substitute for an opinion about this particular property.

The version of this mistake that costs the most: deciding what a family property is worth, for the purpose of dividing it among people, by looking up a published figure. That is a shortcut whose consequences last a generation.

How an opinion is actually arrived at

Described in general terms, because the detail belongs to the person doing it and a page like this should not pretend otherwise.

Broadly, there are three lines of reasoning, and a good report says which it relied on and why.

Comparison — what similar properties have actually transacted at, adjusted for the differences. Sensible where there is a real market in comparable things.

Cost — what it would take to provide the same thing, allowing for age and condition. Relevant where the structure is the point, which is why it appears in insurance questions.

Income — what the property produces or could produce, treated as the basis of its worth. Relevant where the property is held for what it earns.

A property can be looked at through more than one of these, and where two approaches point to very different places, that divergence is itself information. A report that mentions only its conclusion has hidden the most interesting part of its own reasoning.

Seeing the property

For most purposes an inspection is the foundation of the exercise, and its absence changes what the report can claim.

What a visit establishes cannot be got from papers: the actual condition, what has been built and whether it matches the plan, the access, what is happening around it, whether anybody is in occupation, and the dozen small things that a photograph does not convey.

There are limited situations where a desk exercise is what has been asked for, and that is legitimate provided the report says on its face that the property was not inspected and what that means for the opinion.

What is not acceptable is a report that reads as though a property was seen when it was not. That document is a weakness in your own file, and it fails at exactly the moment somebody examines it closely.

So arrange proper access, and be there or send somebody who can open everything and answer questions. An inspection conducted from the gate produces a report with a great many assumptions in it.

What to put in the valuer’s hands

The single thing most within your control, and it directly determines how many assumptions end up in the report.

The instrument by which the property is held, so that what is being valued is identified from the document rather than from conversation.

The approved plan, where there is one, and anything showing what was sanctioned as against what stands.

The identifiers and the schedule, including boundaries and extent.

The municipal or tax record, which frequently carries the area and the description the authorities work with.

Anything about the unit and the land, where the property is part of a building.

Where you do not hold a document, obtaining a copy from the record is worth the few days — our certified true copy guide explains why a copy issued by the record-keeper is the one to have.

Every gap you leave becomes an assumption, and every assumption is a place where the report can later be said to have proceeded on a wrong basis.

Which area is being valued

Unglamorous and responsible for a startling share of disputes about valuations.

Several areas can be stated about the same property and they are all different: what the document records, what the municipal record shows, what is physically built, and the various ways a built area can be described.

A report must say which it used. Where it does, a disagreement can be resolved in minutes. Where it does not, two people argue about the figure while actually disagreeing about the floor.

So check that line first, before the conclusion. And where the areas in your own documents disagree with one another — which is common — raise it at the start rather than letting the valuer discover it.

Where a difference between the sanctioned plan and what stands is discovered, that is a fact about the property with consequences beyond valuation, and it is better known early. Our title verification guide deals with that side of it.

The report assumes your title is good

Stated plainly, because people read a valuation as a clean bill of health for the property and it is nothing of the kind.

A valuation ordinarily proceeds on the assumption that the title is good, that the property is free of charges, and that there is no dispute attached to it. That is an assumption, not a finding. The valuer has not investigated it and the report should say so.

Which means a high figure is not reassurance about ownership, and a report in your file answers no question at all about who is entitled to the property.

The separate exercises that do answer it: a search of the registration records, which our encumbrance certificate guide covers, and the wider examination set out in our title verification guide. Our property verification service does that work.

Read the two together and they answer different halves of the same practical question. Read the valuation alone and you have a figure attached to a property you have not checked.

When a lender is the reader

The most common reason people encounter this exercise, and the one with the most rules attached that are not yours.

A lender is forming its own view of security. It will usually want a valuer it accepts, on a format it uses, for its purpose — which is not the same as what you would ask if you were selling.

So a report you commissioned yourself may simply not be usable by them, however good it is. Ask what they require before commissioning anything, and if they have a panel, use it.

Two further things worth knowing. Their valuation is for their benefit, not yours, and a loan sanctioned is not somebody else’s opinion that your purchase is sound. And you are frequently entitled to see the report or at least the figure — ask, because it is useful information about the property whatever it is being used for.

Our mortgage documentation service deals with the paperwork on the security side, and our home loan guide with the wider file a lender expects.

Insurance asks a different question

The confusion here quietly costs people more than any other on this page, because it surfaces only at a claim.

Insurance of a building is generally concerned with what it would take to reinstate it — a construction question. A market figure, by contrast, includes the land and reflects location, and land does not burn down.

So using a market figure as an insured value can leave a property significantly under-insured or over-insured, and neither is discovered until it matters. Ask the insurer what basis they use, and have the valuation address that basis.

The same logic applies to reviewing cover over time. Construction costs change independently of property prices, and a sum insured fixed years ago on either basis is worth checking.

Where a claim is already in progress, that is a different exercise entirely — our insurance claim documentation service deals with it, and our insurance claim guide sets out what such a claim actually needs.

Official purposes, said carefully

Short, and short on purpose.

Valuations are required in connection with various official processes, and what is acceptable for each is set by the rules governing that process rather than by general practice.

This page prints no rules, no thresholds and no guidance about any of them, because they differ, they change, and a stale line here would be quoted back at somebody years later to their cost.

What is useful and general: ask the authority or your own adviser what form of valuation is acceptable, from whom, and as at what date — before commissioning. Those three answers are what make a report usable, and getting them wrong means doing it again.

And take advice on the tax or official consequences from somebody qualified to give it. We prepare and coordinate documents; we do not advise on liability and would be the wrong people to ask.

Dividing property in a family

Where valuations do the most good and cause the most trouble, and the difference between those two outcomes is decided before the report exists.

Agree the valuer first. In writing, with everybody, along with the purpose and the date. A report commissioned by one branch of a family and produced to the others is almost never accepted, and the attempt usually hardens everybody’s position.

Where agreement on one person is impossible, agree on two and agree in advance what happens if they differ — split the difference, take the average, appoint a third. Deciding that after the figures are known is deciding with everybody’s interest already visible.

Be precise about what is being valued. The whole property, or each share? Land and structure, or the structure alone? Including or excluding something the family treats separately?

And remember that the figure is an input to an arrangement, not the arrangement. Our partition deed and gift deed services prepare the documents that record what is decided, and our partition guide deals with the shape of such an arrangement.

After a death

Handled gently, because people arrive at this while managing a great deal else.

Two things distinguish a valuation in this situation. The relevant date is frequently not today, and saying which date is needed at the outset changes how the valuer works. And the property’s records are often out of date, sometimes by a generation, so the exercise runs alongside putting them in order.

Our mutation guide covers the record side, and a family that has postponed it for years will find that this is the moment the postponement becomes expensive.

Where there is a will, the valuation is an input to giving effect to it; where there is not, it is an input to whatever arrangement the family reaches. Our will drafting guide deals with the other end of the same problem, and it is worth reading afterwards rather than during.

One practical kindness: get one report, agreed by everybody, rather than allowing several to be commissioned separately. At a time when a family is already under strain, competing figures are the fastest route to a dispute that outlives the estate.

A property that is not finished

Two questions hide here, and a report has to say which one it is answering.

What is it worth as it stands today, part-built, with whatever has actually been done? Or what would it be worth completed, on assumptions about completion that may or may not come true?

Both are legitimate and they are very different numbers. A figure for a completed building presented as a present value is misleading even where nobody intended it to be.

So say which you need, and expect a report on a completed basis to state the assumptions it rests on — that the work is finished to a stated standard, by a stated time, with approvals in place.

And where the property is being bought from a developer, remember that the valuation says nothing about whether the project will be completed. That is a different risk and it is not one a valuation addresses.

Valuing a share rather than the whole

Frequently needed, frequently done badly, and the error is always the same: dividing the total.

An undivided share is not a piece of land. It is an entitlement that cannot ordinarily be dealt with alone, and what it is worth to somebody who must act with others is its own question.

So a report that takes the whole and divides by five has answered a different question from the one asked, and in a family arrangement that difference is exactly where the argument lands.

Say clearly what is being valued when commissioning: the whole property, a defined portion, or an undivided share. The three are different instructions and produce different documents.

Where the intention is that one person will take the property and pay the others, say that too. It is a real fact about the situation and a valuer working without it is working with less than they need.

Reading the report

A short method, and it deliberately leaves the figure until last.

Check the purpose and the date first. Are they the ones you asked for? A report answering a different question is not a report you can use, however good it is.

Check the property. Is the description the property you mean, and does the area stated match what you believe?

Read the assumptions and exclusions, which is the section covered next and the heart of the document.

Follow the reasoning. Which approach was used, what evidence supports it, and does the conclusion follow?

Then look at the figure — and read it as what it is: an opinion about this question, on this date, on those assumptions.

The page everybody skips

If you read nothing else in a valuation, read this part, because it is where the figure is defined.

It typically records what was inspected and what was not, which documents were seen, what was assumed about title and permissions, what has been excluded, and any limitation on who may rely on the report.

Each of those changes what the number means. A figure assuming good title is a different figure from one that investigated it. A figure excluding a structure is not a figure for the whole. A figure based on a plan rather than on what stands is answering about a building that may not exist in that form.

So go through it line by line and ask, of each assumption, is this true in my case? Where one is not, that is not a quarrel with the valuer — they said what they assumed. It is a fact you now need to give them.

And note any restriction on reliance. Reports are frequently addressed to one party for one purpose, and handing such a document to somebody else does not make it theirs to rely on.

When you think the figure is wrong

Common, and the response that works is narrow rather than indignant.

First, read the assumptions. Most surprises live there — an area, a condition, an exclusion, a purpose you had not registered.

Then separate fact from judgement. A document not seen, an area misstated, a structure not counted, a permission overlooked — those are factual matters and a proper basis for asking that the report be revisited. “I think it is worth more” is not.

Then put the factual point in writing, with the evidence attached, and ask specifically whether it changes the opinion. Our application drafting guide covers writing that kind of letter — one point, with the document behind it.

What you should not do is press for a different number. A valuer who revises an opinion because a client was unhappy has produced something worth less than the original, and the person holding it carries that.

A second opinion, and when it is legitimate

There is a real version of this and a version that damages you, and the difference is the reason.

Legitimate: the first report rests on a factual error; a great deal turns on the figure; the parties agreed in advance to obtain two; or the recipient will not accept the first for reasons of form.

Not legitimate, and visible: commissioning reports until one produces a figure you like. Anybody who later sees them together — and in a dispute they generally do — can read that sequence as easily as you can.

Where two reports are obtained properly, keep both, including the one you liked less. Producing the convenient half of a pair is worse than producing neither.

And where two competent reports differ on judgement rather than on fact, the useful response is to understand both sets of reasoning rather than to average them and move on.

Nobody should be asked for a number

The shortest section here and the least negotiable.

It happens quietly: a figure is mentioned in passing before the engagement, or a purpose is described in a way that makes the desired answer obvious. It does not feel like pressure and it is.

A valuer who will produce a figure to order is not producing an opinion. They are producing a document, and the risk of that document sits with the person who holds it — at exactly the moment somebody examines it, which is the only moment it will ever matter.

So ask for the reasoning, never for the number, and be honest about the purpose even when the honest purpose is less convenient.

The ordinary warning signs apply here too: a fee before anything has been looked at, a promise about the outcome, and a reluctance to inspect. And the same is true of us — if anybody at this firm were ever to suggest arranging a particular figure, that would be a reason to take your work elsewhere.

Keeping the report

Small habit, real payoff, and it takes ten minutes.

Keep the report itself, the instructions you gave, the documents supplied to the valuer, and a note of the date of inspection. Scanned, together, findable by somebody who is not you.

Why the instructions matter: years later, the argument is almost never about the figure. It is about what the report was for, and the instruction letter is the answer to that.

Keep superseded reports too, with their dates. A property valued three times over a decade has a history, and that history is occasionally the most useful document in the file.

And where the property belongs to a family, tell one other person the file exists. This is the same instinct as everywhere else in this area: a document only you can find is a document that will not be found.

Four things a valuation does not do

Each is assumed by somebody every week, and each assumption ends badly.

It does not establish ownership. It assumes it.

It does not certify the building is sound or lawful. A structural survey and an examination of approvals are different exercises by different people.

It does not fix a price. What somebody will actually pay is decided in a negotiation, and a report is one input to that.

It does not speak for any date but its own, which is why a report produced for one occasion should not be quietly reused for another a year later.

What it does do, properly commissioned, is give you a defensible answer to a clearly stated question — which is exactly what is needed when somebody has to justify a decision involving property, and that is most of the situations in which anybody asks for one.

Six ways the exercise is wasted

None of them are the valuer’s fault, which is the point.

The purpose was never stated, so the report answers a question nobody asked.

The recipient was never asked whose report they accept, and will not take this one.

The date was left as today, when the question was about an earlier one.

Documents were withheld or missing, so the report rests on assumptions nobody has checked.

One side commissioned it in a family matter, and nobody else was ever going to accept it.

The assumptions page was never read, so the figure was used to mean something it did not say.

What we contribute

We do not value property and we will say so before anything else. Our part is everything around the opinion, and it is what decides whether the opinion is usable.

First, settling the brief: what exactly is being valued, for what purpose, as at what date, and — the question most people skip — who is going to read the report and what they will accept. Those four answers written down before anybody is engaged prevent most of the waste in this subject.

Then the papers. We assemble what the valuer needs, obtain copies from the record where something is missing, and flag the differences between documents — particularly in area — before the inspection rather than after the report.

Then coordination: arranging access, making sure somebody is there who can open everything, and seeing that the inspection is a real one.

And afterwards we read the report with you: the purpose, the date, the area used, the assumptions and exclusions, and what the figure therefore does and does not mean. Where something in it rests on a factual error, we help you put that point properly.

What we do not do here

We do not value anything. Not informally, not as a guide, not “roughly”. A figure from us would be worth nothing and could be quoted later as though it were worth something.

We do not influence a valuer. We give them documents and access and leave the opinion to them, which is the only arrangement under which their report is worth commissioning.

We do not advise on tax or on investment. Both come up in every conversation about property value and neither is ours.

We do not certify title or structure. Those are separate exercises and we will tell you which one you actually need.

We promise no figure and no range, before or during. Anybody who does is either guessing or arranging, and both are worse than waiting.

What we charge, and what we do not

Our own work begins at ₹3,500, the usual span is 3 – 10 days, the whole figure is told to you before we start, and nothing is payable in advance. Reading a report you already hold, rather than arranging a fresh one, is a smaller job and priced as one.

The valuer’s professional fee is separate and belongs to them. We tell you what it is rather than folding it into ours, because those are two different things and mixing them would obscure exactly the relationship this page says should stay clean.

What lengthens the work is usually a missing document or a property whose papers disagree with each other about area. Both are worth resolving before the inspection rather than after the report.

And the note this page owes, since the most valuable parts of it cost nothing: state the purpose. Ask the recipient whose report they accept. Fix the right date. Hand over every document. Insist on a real inspection. Read the assumptions before the figure. Do those six things and you will get a report that answers your question — which is the whole of what anybody is buying.

Questions

Valuation — what owners and families ask

What is a valuation report, exactly?
A reasoned opinion of value, given by a person qualified to give it, about a described property, on a stated date, for a stated purpose. Every one of those elements is load-bearing. Take away the purpose or the date and what is left is a number with nothing holding it up.
Is a valuation a fact or an opinion?
An opinion, and saying so is not a criticism of the exercise. The area of a plot is a measurement; what it is worth is a judgement formed from evidence, and two competent people can form slightly different ones from the same evidence. What separates a good report from a bad one is not certainty but reasoning you can follow.
Why does the purpose matter so much?
Because the purpose is part of the question, and a different question has a different answer. What a property would fetch in an ordinary sale, what it would cost to rebuild, and what a lender would treat as recoverable security are three different things about the same building. A report prepared for one of those is not a report for another.
So two honest valuations of the same property can differ?
Yes, and this is the single most misunderstood thing in the subject. Different purpose, different date, different assumptions, different extent included — each of those moves the figure legitimately. Before deciding that one report is wrong, compare the purposes and the dates. Usually that explains it.
Is the government reference figure a valuation?
No. A reference figure published for a locality is an administrative benchmark used for particular official purposes. It is not an opinion about your property, it does not take account of its condition, position or circumstances, and it is neither a ceiling nor a floor on what a property is actually worth. Treating it as a valuation is a very common and expensive shortcut.
Is a valuation the same as a price?
No. A price is what one buyer and one seller agreed on a particular day, and it can be above or below any reasonable opinion of value for reasons that have nothing to do with the property — urgency, a relationship, ignorance on one side. A valuation is an estimate of what would ordinarily be expected. They are related and they are not the same.
How long is a report good for?
It speaks as at its date and no other. There is no general shelf life, and whoever is relying on it usually has their own view about how recent it must be — ask them before commissioning rather than after. Where a matter is going to take months, expect to be asked for something current at the end of it.
Does the valuer need to visit?
For most purposes, yes, and a report prepared without an inspection should say so on its face. There are limited situations where a desk exercise is what has been asked for, and in those the report should be explicit that it was not inspected. What you should not accept is a report that reads as though a property was seen when it was not.
What papers should I have ready?
The document by which the property is held, any approved plan, the identifiers and schedule, the tax receipt or municipal record, and anything showing the extent. Where the property is in a building, the documents relating to the unit and to the land. A valuer working from incomplete papers has to assume, and assumptions weaken a report.
Which area does a report use?
Whichever it says it uses, which is why the report has to say. Built-up, carpet, plot extent and the area described in the document can all differ from one another for perfectly ordinary reasons. Disagreements about valuations are surprisingly often disagreements about which area was being valued.
Does the report say anything about my title?
It does not, and it should say that it does not. A valuation ordinarily proceeds on the assumption that the title is good and unencumbered, which is an assumption and not a finding. Whether that assumption holds is a different exercise — our encumbrance certificate guide and title verification guide deal with it.
What does a lender actually want?
Their own view of the security, from a valuer they accept, on their format, for their purpose. Which means a report you obtained yourself may not be usable by them, however good it is. Ask the lender what they require before commissioning anything, because otherwise the exercise gets paid for twice.
Is an insurance valuation the same thing?
No, and confusing the two costs people real money at the worst moment. Insurance is generally concerned with what it would take to reinstate a building, which is a construction question and excludes the land. A market figure used as an insured value can leave a property significantly under-insured without anybody noticing until a claim.
We are dividing property in the family. How is it valued?
By somebody everybody agreed on before the report was produced, which is the entire trick. A valuation commissioned by one side and presented to the others is rarely accepted, whatever its quality. Agree the valuer, the purpose and the date first, in writing, and the report will do the job it was meant to do.
Somebody has died and we need a figure.
Then be clear about the date the figure relates to, because in that situation it is frequently not today. Say so when commissioning, and expect the report to state the date of valuation prominently. It is also a moment to get the records in order generally — our mutation guide covers the record side.
Can we ask the valuer for a particular figure?
No, and this is the one place on this page where the answer is flat. A valuer who will produce a figure to order is producing a document rather than an opinion, and the person holding that document carries the risk of it — including at the moment it is relied on by somebody who examines it. Ask for the reasoning, never for the number.
The figure seems too low. What can I do?
Read the assumptions before reacting, because that is usually where the answer is: an area, a condition, an exclusion, or a purpose you had not expected. Then raise the specific point with evidence. A factual correction — a document not seen, an area misstated — is a proper basis for revisiting a report. Disagreement with the judgement is not.
Should I get a second report?
Sometimes, and be clear about why. A second opinion is reasonable where the first rests on a factual error, where a great deal turns on the figure, or where the parties agreed in advance to obtain two. Commissioning reports until one produces the number you wanted is a different activity and it is visible to anybody who later sees them together.
What is the most important page of the report?
Not the one with the figure. The one setting out what was assumed, what was inspected, what documents were seen, and what was excluded. That page tells you what the number actually means and it is the page everybody skips.
Does it matter that the property is under construction?
It matters a great deal, because there are then two questions — what it is worth now in its present state, and what it would be worth completed. A report should be explicit about which it is answering, and a figure for a completed building presented as a present value is misleading even when nobody intended it to be.
Can a share in a property be valued?
A share can be valued, and it is not simply a fraction of the whole. What an undivided share is worth to somebody who cannot deal with the property alone is its own question, and a report that just divides the total has not answered it. Say clearly what is being valued when commissioning.
A court is involved.
Then valuation in that matter is directed and conducted the way that matter requires, and it is your advocate’s territory rather than ours. Court work is for your advocate, whose fee is engaged and paid by you directly; we do not quote, collect or share it, and our find an advocate page is there.
Do you value property yourselves?
No, and you should be wary of any documentation firm that says it does. A valuation must come from somebody qualified to give one and independent of the outcome. What we do is the work around it: establishing the purpose, assembling the papers, coordinating the inspection, and reading the report with you afterwards.
What exactly does your part cover?
Settling what is being valued and why, which decides everything else; getting the documents together so the valuer is not assuming things; arranging access and the inspection; and then going through the report with you — the assumptions, the area used, the exclusions — so you know what the figure does and does not mean.
Fee and timing?
Our own work begins at ₹3,500; the whole figure is told to you at the outset and nothing is payable in advance. Reckon on 3 – 10 days. The valuer’s own professional fee is separate and belongs to them — we tell you what it is rather than folding it into ours.
Related

Value, records and the documents around them

Encumbrance certificate Property verification Mutation assistance Partition deed Will drafting Mortgage documentation Insurance claim documentation Certified true copy Encumbrance certificate guide Title verification guide Partition deed guide Find an advocate

Fix the question first, and the figure will be worth something.

Most wasted valuations are perfectly competent reports answering a question nobody needed answered. We settle the brief before anybody is engaged — what is being valued, for what purpose, as at what date, and whose report the reader will actually accept — then assemble the documents so that nothing has to be assumed, arrange a real inspection, and afterwards read the report with you: the area used, the assumptions, the exclusions, and what the figure therefore means. We do not value anything ourselves, and we will never suggest a number to anybody who does.

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