appraisal value
Appraisal Value is a licensed valuer's professional opinion of what a property is truly worth, used by banks and buyers before money changes hands.
In plain English
Chidinma sells fabric at Balogun Market, and after twelve years of saving, she found a three bedroom bungalow in Ikorodu she wanted to buy with a mortgage from her bank.
The seller was asking ₦38,000,000, and Chidinma was ready to pay it, because the house had nice tiles and the seller talked well.
Her bank said not so fast, and sent a professional valuer to look at the property properly, checking the land size, the building quality, the road access, and what similar houses nearby had sold for.
The valuer came back with an appraisal value of ₦29,500,000, which meant the bank would only lend against that lower figure, not the asking price.
This saved Chidinma from borrowing against a house that was not worth what she was about to pay, and gave her room to negotiate the price down with proof in hand.
A relative in Manchester sending money home to buy land in Asaba should ask for the same thing, because a fair appraisal protects you from paying diaspora prices for a Nigerian property.
A duplex in Lekki is listed at ₦85,000,000, but a certified valuer appraises it at ₦72,000,000 after checking comparable sales and the state of the building, so the bank bases the loan on ₦72,000,000, not the asking price.
Questions people ask
Who carries out an appraisal in Nigeria?
A registered estate surveyor and valuer, usually one accredited by the Nigerian Institution of Estate Surveyors and Valuers, or one appointed directly by the mortgage bank handling your loan.
Is appraisal value the same as market value?
They are closely related but not identical, since appraisal value is a professional's documented estimate at a point in time, while market value is what a willing buyer and seller actually agree to pay in the open market.
Can I challenge an appraisal I think is too low?
Yes, you can ask for the report in writing, point out comparable sales the valuer may have missed, or request a second appraisal from another qualified valuer before accepting the figure.
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