Why Banks Require Property Valuations
Before a bank sanctions a home loan, it needs to know the current market value of the property being mortgaged. The loan amount is typically restricted to 75–90% of the value determined by the bank's approved valuer — this is the Loan-to-Value (LTV) ratio.
If the valuation comes in lower than the agreed purchase price, the bank will sanction a lower loan amount, and you will need to cover the difference from your own funds.
Step 1: Bank Appoints a Valuer
Most banks maintain a panel of approved valuers. Upon receiving your loan application, the bank's credit team will assign a valuer from their panel. You cannot typically choose your own valuer for the bank's report — though you can always commission an independent report separately.
As an empanelled valuer with 25+ leading banks, RK Values is frequently appointed for this role across Hyderabad and the surrounding region.
Step 2: Physical Site Inspection
The valuer will schedule a site visit to physically inspect the property. During this inspection, we assess:
- ·Built-up area — actual measurement vs. approved plan
- ·Structural condition — quality of construction, age, and state of maintenance
- ·Amenities and finishes — flooring, fittings, and overall quality
- ·Legal compliance — approved plan verification, occupancy certificate status
- ·Locality factors — connectivity, infrastructure, neighbourhood quality
Please ensure access to all areas of the property during the inspection, and keep documents (approved plan, sale agreement, encumbrance certificate) available.
Step 3: Market Analysis
Following the site visit, the valuer conducts a market analysis:
- ·Recent comparable sales in the locality
- ·Current price trends in the micro-market
- ·Demand and supply factors
- ·Any special characteristics of the property
Step 4: Valuation Report
The certified report is prepared and submitted to the bank, typically within 24–72 hours of the inspection. The report includes:
- ·Property description and photographs
- ·Market value determination
- ·Valuation methodology
- ·Valuer's certification and signature
How to Ensure a Smooth Valuation
1. Have all documents ready — title deed, approved plan, encumbrance certificate, sale agreement
2. Ensure the property is accessible — arrange keys and accompany the valuer if needed
3. Be transparent — any additions or alterations should be disclosed upfront
4. Understand that valuation ≠ price — market value may differ from the price you agreed to pay, especially in a rapidly moving market
If the Valuation Comes in Low
A low valuation is not the end of the world. You can:
- ·Commission an independent valuation and discuss it with your bank
- ·Negotiate the purchase price with the seller
- ·Make a higher down payment
- ·Apply to a different bank (valuation outcomes can vary)
For any questions about the home loan valuation process in Hyderabad or Andhra Pradesh, contact RK Values at +91-854-787-8978.