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.

 

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📜 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?”

 

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💰 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.
   

 

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🏦 How is the Value Calculated?

Valuers look at:

• Location 🗺️
   
• Property type & size 📏
   
• Condition of the unit 🏠
   
• Market transactions nearby 💹
   

 

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👀 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.

 

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✨ Takeaway

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