Common Mistakes to Avoid Before Commissioning a Property Valuation

Short answer: The biggest valuation mistakes happen before the report is drafted: unclear purpose, wrong valuation date, incomplete documents, wrong area basis, undisclosed restrictions and expecting one generic certificate to work for every recipient.

Checklist before you start

• Confirm the purpose: tax, sale, purchase, loan, visa, inheritance, company record or feasibility.
• Confirm the valuation date: current, historical, 1 April 2001 or another specific date.
• Collect ownership, area, tax, plan and location documents.
• Disclose tenancy, mortgage, litigation, access constraints and redevelopment discussions.
• Ask the receiving authority, bank or adviser for any required format.

Mistake 1: relying only on locality rates

Locality rates are only a starting point. Micro-location, access, area basis, condition, legal status, use and evidence can change value significantly.

Mistake 2: using the wrong area basis

Carpet, built-up, super built-up and chargeable areas are not the same. The report should clearly state the area basis and documents relied upon.

Mistake 3: expecting guarantees

Valuation supports documentation and decision-making. It does not guarantee tax acceptance, visa approval, bank sanction, court outcome or sale price.

Mistake 4: sharing sensitive documents too early

Do not send original or highly sensitive documents until the assignment scope and sharing method are agreed. Clear copies are usually enough for preliminary review.

Official sources and further reading

• IBBI – Registered Valuers
• Income Tax Department
• IGR Maharashtra e-ASR
• India Code