What is the difference between an expert valuation report and a market price estimate of a property?
You may have come across the terms expert valuation report and market price estimate, for example, when applying for a mortgage at a bank or during the sale or purchase of a property through a real estate agency — and perhaps assumed they mean the same thing. This article briefly explains that they do not. These terms have different meanings.
The main difference between an expert valuation report and a market price estimate lies in who prepares the document and for what purpose it is used.
An expert valuation report is prepared by a court-appointed expert. To become an expert, a candidate must meet strict legal requirements and be officially appointed by the Minister of Justice or the President of a Regional Court. As the title suggests, only a court-appointed expert can issue reports for judicial proceedings. However, such reports are also required for tax and accounting purposes, as well as for financial settlements in inheritance proceedings.
A property valuer (appraiser) is also a regulated profession but operates under a licensed trade. You will typically encounter their reports in banks (for mortgage purposes) or insurance companies (for property insurance).