Property Tips: What is a Valuation Report (and Why Do You Need It)?

When you apply for a housing loan, the bank always asks for a valuation report. But what is it really, and why does it matter so much? Let’s break it down.

What is a Valuation Report?

A valuation report is an official document prepared by a licensed property valuer.
It estimates the current market value of the property you want to buy.

Think of it as the bank’s way of checking:

“Is this house really worth the price you’re paying?”

Why is it Important?

• Loan Approval: Banks use it to decide how much they’ll lend you.
   
• Fair Price Check: Ensures you’re not overpaying for the property.
   
• Investment Confidence: Gives you peace of mind that your money is going into the right place.
   

How is the Value Calculated?

Valuers look at:

• Location 
   
• Property type & size
   
• Condition of the unit
   
• Market transactions nearby
   

Quick Tip

If you’re buying a property at RM500,000 but the valuation comes back at RM470,000 → the bank will only finance based on RM470,000.
You’ll need to top up the difference yourself.

Takeaway

Always check the valuation report before finalising your deal. It can save you from paying too much — and help secure your loan smoothly.