The process of valuation is done through a surveyor, who will take the average figures for houses in the region over the past at least three years. They will make inspections of all rooms, including any outbuildings which are not supplied by central heating – whether they are inhabited or not.
One of the functions a bank has is to determine the value of an asset. A number of factors are taken into account for this, including location, condition and other features. Banks may do this by surveying recently purchased properties in the area or by combining expert opinions with their own evaluation process. Banks will also take into consideration external factors that influence property prices such as current economic conditions and future prospects for growth.