Not every property valuation is carried out for the same reason.
A property may need to be valued for mortgage financing, insurance, probate, investment, rental purposes, compulsory acquisition, taxation, or another professional requirement.
Understanding the types of property valuation in Nigeria can help you identify the kind of valuation appropriate for your situation.
1. Mortgage Valuation
A mortgage valuation may be required by a financial institution when property is being offered as security for a loan. The assessment provides relevant information about the property for the financing decision.
2. Insurance Valuation
Insurance valuation involves assessing relevant property or asset values for insurance purposes. For buildings and specialised assets, the appropriate basis of assessment depends on the assignment and insurance requirement.
3. Probate Valuation
A probate valuation may be required when determining the value of property forming part of a deceased person’s estate. It can support estate administration and related processes.
4. Rental Valuation
Rental valuation assesses the appropriate rental value of a property based on relevant market evidence and characteristics. It can be useful to landlords, investors, property managers, and other property owners.
5. Investment Valuation
Investors may require valuation advice when considering whether to acquire, retain, finance, redevelop, or dispose of an asset.
6. Capital Gains & Tax-Related Valuation
Certain transactions and statutory processes may require an assessment of property value for tax-related purposes. The appropriate valuation basis depends on the specific requirement.
7. Compulsory Acquisition Valuation
Where property is being compulsorily acquired, professional valuation may be required to assess relevant compensation considerations.
8. Landed Property Valuation
Land may be valued for acquisition, disposal, investment, development, financing, or other purposes. The assessment can consider location, size, title, planning considerations, market evidence, and development potential.
9. Plant & Machinery Valuation
Specialised assets such as plant and machinery may also require professional valuation. This is particularly relevant where such assets form part of an operational business or specialised property.
Which Property Valuation Do You Need?
The right valuation depends primarily on the purpose of the assignment. Before commissioning a valuation, explain what you intend to use it for. This allows the valuer to determine the appropriate scope and basis of assessment.
Need Help Identifying the Right Valuation?
Ayeye & Co. provides professional valuation services for individuals, businesses, investors, financial institutions, government agencies and other clients.
