When buying, selling, or applying for a loan or visa, two common real estate terms often confuse people: Property Valuation and Market Price. Although they sound similar, they serve very different purposes. Let’s break down the key differences so you can make smarter, informed decisions.
🏷️ 1. What is Property Valuation?
Property Valuation is the objective, professional assessment of a property’s value at a specific time, done by a government-registered valuer. It’s based on:
- Age, size, and condition of the property
- Legal documents and title clarity
- Location and amenities
- Construction cost & depreciation
- Regulatory restrictions (zoning, leasehold, etc.)
📄 Used For:
- Bank loans and mortgages
- Visa and immigration documents
- Legal disputes or court cases
- Tax or capital gains calculations
- Government tenders or asset declarations
💰 2. What is Market Price?
Market Price is the actual price a buyer is willing to pay, and a seller is ready to accept, in the open market. It fluctuates based on:
- Buyer-seller demand and supply
- Negotiation and urgency
- Market sentiment
- Nearby recent sales
- Speculation or investment trends
📈 Influenced By:
- Local trends (e.g., metro development)
- Builder discounts or overpricing
- Black money in transactions (non-registered)
- Agent influence
🆚 Key Differences
| Feature | Property Valuation | Market Price |
|---|---|---|
| Done By | Certified Government Valuer | Buyer-Seller Agreement |
| Basis | Legal, physical & economic analysis | Emotions, demand & local trends |
| Stability | Stable, justifiable & documented | Fluctuates based on market conditions |
| Usage | Legal, financial, official purposes | Real-time transactions |
| Documentation | Valuation Certificate | Sale Deed / Agreement to Sell |
🔍 Why It Matters
✅ A Property Valuation helps you avoid overpaying or underpricing.
✅ It gives banks and embassies confidence in your asset’s worth.
🚫 A Market Price may be inflated or speculative—it’s not always reliable for legal or financial decisions.
🧾 Which One Should You Use?
| Purpose | Use |
|---|---|
| Bank Loan | Property Valuation |
| Visa or Immigration | Property Valuation Certificate |
| Selling a Property | Market Price (with agent inputs) |
| Legal / Inheritance Case | Property Valuation |
| Investment Planning | Both (Valuation for safety, Market Price for ROI) |
