How property valuation works, and why it comes in low

Updated September 2026 2 min read

Who does it and how

The lender appoints a panel valuer — not you, and not your estate agent. They visit the property, measure the built-up area, note the age, condition, approach road and amenities, and compare it against recorded transactions of similar properties nearby.

You pay for the visit, typically ₹3,000 to ₹15,000, and larger loans often require two independent valuations with the lower figure used.

Why the number is conservative

• Registered values sit below market. A great deal of Indian property changes hands at a registered value below the actual price. Valuers work from what is recorded.
• The lender is valuing a distressed sale. The question they are really answering is what this would fetch if it had to be sold reasonably quickly.
• Unapproved area is discounted or excluded. Built area beyond the sanctioned plan may be valued at a fraction, or at nothing.
• Land and building are assessed separately. An old building on valuable land may be valued largely on the land, with the structure depreciated heavily.

What you can reasonably do

• Be there for the inspection. Point out recent renovation, a corner plot, better road frontage — the things a fifteen-minute visit might miss.
• Have your paperwork out — approved plan, tax receipts, completion certificate. A valuer with everything in front of them values more confidently.
• Bring genuine comparables if you have them: recent registered sales in the same building or street. Hearsay about what a neighbour “got” is not useful.
• Present the property well. It sounds trivial. It is not.

If the valuation comes in badly

You can usually request a second opinion, sometimes at your cost. If the gap is genuinely large and you can evidence it with registered comparables, it is worth doing. If the gap simply reflects the market-versus-registered difference, a second valuer will most likely say the same thing, and the better use of your energy is to adjust the plan.

Different lenders also empanel different valuers with different appetites, which is one practical reason it is worth knowing which lender a file goes to before it goes there.

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