If you’re planning to buy, sell, insure, or invest in real estate, understanding property valuation is essential. It is one of the most important steps in making informed real estate decisions — whether for individuals, businesses, or financial institutions.

🧾 What is Property Valuation?

Property valuation is the professional process of determining the market value of a property — usually land, buildings, or both — at a given point in time. This value is determined by certified valuers using various methods, including analysis of location, size, use, condition, and comparable sales.

The outcome is a valuation report, which details the estimated market value and supporting data.

💡 Why Does Property Valuation Matter?

✅ 1. Buying or Selling a Property

Whether you’re a buyer or a seller, a valuation helps ensure that the property is not overpriced or undervalued. It gives both parties confidence in the transaction.

✅ 2. Loan Security for Banks

Banks and financial institutions require property valuations before issuing mortgage loans. The valuation confirms that the property is sufficient security for the amount borrowed.

✅ 3. Insurance Purposes

Insurers use property values to determine how much coverage you need and how much premium to charge. An undervalued property may lead to inadequate compensation in the event of loss.

✅ 4. Accounting and Financial Reporting

Businesses use valuations for balance sheet reporting, asset revaluation, and preparing audited financials. It ensures compliance with IFRS standards.

✅ 5. Taxation & Estate Planning

Governments and tax authorities require property valuations for assessing capital gains tax, estate duty, or transfer taxes.

✅ 6. Property Development & Investment

Investors rely on accurate valuations to make decisions on land acquisition, property improvements, and project viability.

🛠️ How is a Property Valuation Done?

Professional valuers consider the following:

• Location and neighborhood
• Land size and usage (residential, commercial, industrial)
• Building structure, age, and condition
• Market trends and demand
• Comparable sales of similar properties
• Zoning laws and legal title status

There are different methods used, such as:

• Comparative Sales Method
• Income Capitalization Method
• Cost Approach

🧑‍💼 Who Can Do a Property Valuation?

In Malawi, valuations must be conducted by a registered valuation surveyor under the Board of Valuers and Estate Agents. Working with a qualified professional ensures your report is credible and accepted by banks, insurers, and courts.

🏢 Need a Valuation?

At Terrestrial Property Consulting Limited, we provide:

• Residential & Commercial Property Valuation
• Plant & Machinery Valuation
• Asset Revaluation for Banks, Insurers & Institutions
• Market Reports for Investment Decisions

📞 Contact Us Today
Tel: +265 888 141 612
📍 Reunion House, Office 22, Blantyre
✉️ info@tpcmalawi.com

📝 Final Thought

Whether you’re a homeowner, business owner, or investor — property valuation is a smart move that protects your interests, ensures financial clarity, and helps you make better real estate decisions.