What is a property valuation report and when do you need one

• Mortgage and refinancing: the bank values the collateral, and the law requires a certified valuer to do it. This is the most common reason.

• Inheritance: if heirs divide a property or pay each other out, an independent market value helps them agree.

• Divorce and dividing property: the parties or the court need a value that neither side set itself.

• Court disputes: for example ending co-ownership or compensation for damage.

• Company accounting: setting the fair value of property on the balance sheet and in an audit.

Note: the bank itself chooses or approves the valuer. Each bank keeps its own list of accepted valuers, and the valuation is usually ordered after the bank’s preliminary offer. A report made for one bank is often not accepted by another.

Do I need a valuation report?

Pick your situation and get the answer straight away.

There is no official price list: each valuer or valuation firm sets its own price. An apartment report usually costs from about €150; for a house, land or commercial property the price is usually higher and depends on the property and the distance. Before ordering, ask several valuers from your bank’s list for a price and turnaround.

Some banks offer the valuation free in certain cases or do not require one for new developments, so ask your bank first.

A report shows the value on a given date, the day of the valuation. Markets move, so banks usually want a recent report, but each bank decides for itself how old a report it accepts. Ask your bank before you order a report or apply for a loan.

The valuer tells you the turnaround when you order: it depends on the property and on how complete the documents are.

Will the bank still accept your report?

Enter the valuation date and the limit your bank gave.

For a mortgage, only a certified property valuer may value the property (Consumer Rights Protection Law, Article 8.¹). The requirements are set by Cabinet Regulation No. 559: a professional qualification in valuation, at least three years’ experience and at least 20 valuations done. The certificate is issued by the valuer certification bureau of the Latvian Association of Property Appraisers (LĪVA), accredited by the Latvian National Accreditation Bureau (LATAK), and is valid for five years. Latvia has around a hundred certified property valuers.

How to check a valuer

1. 1Find the name in the LĪVA registerThe register of certified property valuers is public and free.
2. 2Check the validityA certificate is valid for five years; the register shows its number and expiry.
3. 3For a loan, see the bank’s listThe bank itself chooses or approves the valuer, so check its list too.

Open the LĪVA register ↗

You can check whether a valuer’s certificate is valid in LĪVA’s public register of certified property valuers: it shows the certificate number and its validity. For a mortgage, choose a valuer from your bank’s list.

If the report is for a loan, start with the bank: it will tell you which valuers it accepts and how to order. For other purposes, pick a valuer in the LĪVA register and ask several for a price and turnaround.

From choosing a valuer to the bank’s decision

1. 1

   Choosing a valuer

   Before ordering

   For a loan, the bank tells you which valuers it accepts. For other purposes, pick a valuer in the LĪVA register and ask several for a price and turnaround.

2. 2

   Documents

   Before the inspection

   Proof of ownership, the cadastral survey file or a floor plan, and information about alterations.

3. 3

   Inspection

   By arrangement

   The valuer checks the condition, the layout, whether the area matches the documents, any alterations and the location.

4. 4

   The report is ready

   After the inspection

   The valuer drafts and signs the report and tells you the turnaround when you order.

5. 5

   The bank assesses it

   For the loan decision

   For a loan, the bank uses the report to decide how much to lend. Ask how old a report it accepts.

Before the inspection, prepare your documents: proof of ownership (a Land Register folio printout or the purchase contract), the cadastral survey file or the flat’s floor plan, and information about any alterations and re-planning. Complete documents speed up the work.