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Comparative vs. Cost-Based Property Valuation: What’s the Difference?

Want to know the right valuation method for your property? Creative Valuers uses both comparative and cost-based methods to provide accurate, bank-approved reports.

Why Understanding Valuation Methods Matters

Property valuation isn't a one-size-fits-all process. Whether you're buying, selling, or using your property as collateral, choosing the right valuation method can directly affect how your property is assessed.

Let’s break down the two most commonly used approaches: comparative and cost-based valuation.

1. Comparative Method

This approach evaluates your property based on the market rates of similar properties in the same area.

Ideal for:

Residential property sales

Resale flats

Market-based decision making

Pros:

Reflects current market trends

Fast and easy to implement

Cons:

Less accurate in areas with fewer recent sales

Can be subjective depending on local fluctuations

2. Cost-Based Method

This method calculates the cost to rebuild the property from scratch, minus depreciation, and then adds the land value.

Ideal for:

Industrial buildings

Insurance valuations

Properties with no clear market comparison

Pros:

More accurate for unique or newly built structures

Based on physical attributes and actual costs

Cons:

Can undervalue properties in rising markets

Doesn’t factor in market demand directly

For reliable results, choose a method that suits your property’s type and purpose. Certified professionals like Creative Valuers help you navigate both approaches for valuations that meet all legal and financial standards.

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5 Must-Have Documents Before Your Property Valuation in India

Looking for reliable property valuation services? Creative Valuers offers certified valuation reports accepted by banks, legal bodies, and financial institutions across India.

🏠 Why Property Valuation Needs the Right Documents

Whether you're applying for a home loan, settling a legal dispute, or planning to sell your home, getting your property valued is essential. But the process can slow down significantly if you don't have the correct documents ready.

Here are five key documents you should keep on hand before scheduling a valuation.

1. Title Deed

The title deed proves legal ownership of the property. It must be free of disputes or encumbrances to be valid for valuation purposes.

2. Approved Building Plan

If the property includes a constructed building, you’ll need an approved plan sanctioned by the local municipal authority. This ensures the construction is legal and within permissible limits.

3. Occupancy Certificate (OC)

An Occupancy Certificate confirms that your property is ready to be occupied and complies with all construction norms. It’s critical for valuers to assess completed structures.

4. Property Tax Receipts

Current property tax receipts help verify ownership and confirm that there are no pending dues. It also helps establish the size and location of the property.

5. Sale Deed or Previous Valuation (if available)

Providing a previous sale deed or valuation report gives the valuer a base reference, speeding up the process and increasing accuracy.

Being prepared with these documents ensures a smoother, faster, and more accurate valuation. It also adds credibility when dealing with buyers, lenders, or government agencies.Need a valuation you can trust? Creative Valuers delivers fast, document-backed reports across major Indian cities.