What is the valuation report?
Valuation of a house or apartment by a broker is usually required to obtain a mortgage loan. The bank often requires a valuation report of a house/apartment. In the valuation process, the real estate and its neighborhood are evaluated. The value of a house/apartment is based on two different amounts concerning the given real estate, which are given in the valuation report. The first of them is the liquidation value: this is the value of forced sale. The second is the sale value. This is the value that the real estate should reach in a (normal) sale. Based on various criteria, which are described in the report, the appraiser determines the value of the real estate. If you already have renovation plans at the purchasing stage, it is important to specify this. The amount of the valuation then goes up, which raises the value of your real estate and reduces the contribution of own equity. Thus, costs drop. This is also possible after purchase.