Why You Should Always Insist on a Certified Valuation Report

In the real estate world, accurate information is everything — especially when it comes to the value of a property. Whether you are buying, selling, investing, or applying for a mortgage, one document stands out as a safeguard against risk: the certified valuation report. Yet, many people still make critical property decisions without one, relying instead on guesswork, informal opinions, or inflated claims.

This article explores what a certified valuation report is, why it matters, and how it protects your interests.

What Is a Certified Valuation Report?

A certified valuation report is an official document prepared by a registered estate surveyor and valuer, which outlines the professional assessment of a property's market value. It includes:

1. Property description (location, size, features)
2. Purpose of valuation (sale, mortgage, insurance, acquisition, etc.)
3. Method of valuation used (e.g., comparative, income, cost)
4. Legal status and documentation of the property
5. Market analysis and comparable evidence
6. Final valuation figure
7. Signature and seal of a certified valuer

This report is legally recognized and can be submitted to financial institutions, courts, government agencies, or investors.

Why You Should Always Insist on a Certified Report

1. Protects You from Overpaying or Underselling

A certified report reflects the true market value of a property based on current data and professional analysis — not speculation or emotional pricing. Whether you’re buying or selling, it ensures you're not short-changed.

2. Gives You Leverage in Negotiations

Armed with a certified report, you can confidently back up your asking price or counteroffer. It provides a credible basis for negotiation that is hard to dismiss.

3. Required by Banks and Financial Institutions

If you're applying for a mortgage, using property as collateral, or seeking funding for development, banks will demand a certified valuation report to determine the property's security value.

4. Reduces Legal Risks

Property transactions often come with legal implications, especially when there are disputes, compensations, or taxes involved. A certified report serves as evidence that the valuation was done professionally and fairly.

5. Prevents Fraud and Misrepresentation

Nigeria’s real estate market faces challenges like fake documentation, inflated claims, and property scams. A certified valuation report confirms:

That the property exists,

That its title is verifiable,

That the stated value is justifiable.

6. Essential for Insurance and Taxation

To insure your property correctly or calculate capital gains tax upon sale, a certified report gives the accurate basis for computation — saving you from underinsurance or overpayment.

7. Useful in Legal Proceedings

In cases of divorce settlements, land disputes, or compulsory acquisition by government, courts recognize certified valuation reports as reliable evidence of value.

How to Ensure the Report Is Legitimate

Engage a Registered Valuer: Confirm their registration with ESVARBON and/or NIESV.

Look for the Stamp and Signature: Every certified report must carry the seal of a licensed estate surveyor and valuer.

Ensure a Physical Inspection Was Conducted: Avoid "desktop valuations" that haven’t assessed the property on-site.

Demand Full Disclosure: The report should clearly explain all assumptions and data sources.

Conclusion

In real estate, an uninformed decision can cost millions — or worse, lead to legal battles and emotional distress. A certified valuation report isn’t just a document; it’s your shield against risk, misinformation, and loss. Whether you're a property buyer, seller, investor, or institution, always insist on a certified valuation — it’s not just professional; it’s essential.