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💰 Understanding Property Valuation

How banks and buyers value property differently:

Bank Valuation Factors: • Circle rate/guideline value • Depreciation (age of building) • Location & connectivity • Building quality

Market Value Factors: • Recent transaction prices • Demand-supply in area • Amenities & view • Floor & facing

Typical Gap: Bank value is usually 10-20% lower than market price.

Why it matters: • Loan amount = 80% of bank valuation • You need higher down payment if market price > bank value

Tip: Get valuation done early to plan finances better