How to Conduct a Property Valuation in Nigeria (Step‑by‑Step Guide)

Introduction: Why I Pay for a Valuation Even When Not Required

Last year, I considered selling a rental property. A buyer offered ₦40M directly. I almost accepted, but my lawyer advised me to get a valuation. The valuer came back with ₦47M – 17.5% higher. I sold at ₦45M, an extra ₦5M. The valuation cost me ₦80,000. That’s a 6,250% return on investment. In this article, I’ll show you exactly how to conduct a property valuation in Nigeria, step by step, so you never leave money on the table – or overpay for a property.

What Is a Property Valuation?

A valuation is a professional opinion of a property’s market value at a specific date. It’s not an exact science, but it uses comparable sales data, income analysis, and replacement costs. In Nigeria, only NIESV‑registered estate surveyors and valuers are legally authorised to give valuation reports for official use (banks, courts, government).

When Do You Need a Valuation?

• To buy or sell – know the fair price.

• To get a mortgage – banks require a valuation before approving a loan.

• For insurance – to determine replacement cost.

• For probate or inheritance – to divide assets fairly.

• For expropriation – to claim compensation from government.

• For tax purposes – Capital Gains Tax computation.

Step 1: Find a Registered Valuer

Do not use your uncle’s friend who “knows property.” Go to the NIESV website and use their “Find a Valuer” tool. Look for someone with at least 5 years of experience in your property’s location. Ask for their registration number and verify with ESVARBON.

Cost range: Residential property valuation ₦50k‑₦200k; commercial ₦200k‑₦500k. Some valuers charge a percentage (0.3‑0.5% of value), but flat fees are common for residential.

Step 2: Provide Property Documents to the Valuer

Before the site visit, send the valuer:

• Survey plan and deed (C of O or Deed of Assignment).

• Recent photos.

• Any rental agreements (if income‑producing).

• Receipts for recent renovations.

The valuer will use these to understand the property’s legal status and features.

Step 3: Schedule a Physical Inspection

The valuer will visit the property. Be present. They will:

• Measure room dimensions and total floor area.

• Note materials (flooring, roofing, finishing).

• Assess condition (new, good, needs repair).

• Check amenities (parking, security, power, water).

• Observe neighbourhood (roads, drainage, proximity to schools, markets).

This inspection usually takes 30‑60 minutes.

Step 4: The Valuer Researches Comparable Sales

This is the most important part. The valuer will search recent transaction records for similar properties in the same area. They may use:

• Land Registry data (past registration prices).

• Agent databases (actual sale prices).

• Their own transaction history.

In Nigeria, this can be difficult because many transactions are under‑reported. A good valuer has a private network of agents and lawyers who share data.

Step 5: Apply the Appropriate Valuation Method

1. Comparative method – Most common for residential. The valuer adjusts comparable sale prices for differences (size, condition, location) to arrive at your property’s value.

2. Investment method – For rental properties. Value = net annual income × yield multiplier. For example, a property renting for ₦2M/year with a market yield of 8% would be valued at ₦2M / 0.08 = ₦25M.

3. Cost method – For unique properties (churches, schools). Value = cost to rebuild minus depreciation.

Step 6: Review the Draft Valuation Report

The valuer will send you a draft. Check for:

• Correct property address and description.

• Comparable sales – are they truly similar?

• Assumptions (e.g., “assuming clean title”).

• Date of valuation.

If anything is unclear, ask questions. A good valuer will explain their reasoning.

Step 7: Receive the Final Report

The final report will be signed and stamped with the valuer’s NIESV seal. It should include:

• Purpose of valuation.

• Effective date.

• Property description and photos.

• Comparable sales table.

• Valuation calculation.

• Disclaimers.

Keep this report. You may need it for future sale, mortgage, or legal disputes.

Common Mistakes to Avoid

• Using a non‑registered valuer – their report won’t be accepted by banks or courts.

• Asking the valuer to inflate value – this is unethical and can get you blacklisted.

• Not providing full access – if the valuer can’t inspect all rooms, the report will include a disclaimer reducing its usefulness.

• Valuing only once – property values change. Get a new valuation every 2‑3 years or before a major transaction.

How to Use a Valuation for Negotiation

If you’re buying and the valuation is lower than the asking price, share the report with the seller. Say, “I’m willing to pay the market value as determined by a NIESV valuer. Can we meet at that price?” Most reasonable sellers will negotiate.

If you’re selling and the valuation is higher than offers, use the report to justify your asking price.

My Personal Valuation Story

I recently valued a 4‑bedroom duplex in Ikeja GRA. My gut said ₦85M. The valuer came back with ₦92M, based on a recent sale of a similar unit. I listed at ₦90M and sold in three weeks. Without that valuation, I would have left ₦5M on the table.

Conclusion

Property valuation is not an expense – it’s an investment. For a few thousand naira, you can avoid overpaying, under‑selling, or losing loan approvals. Always use a NIESV‑registered valuer. And if you’re looking for properties that already have recent valuations, check the TNJC Homes verified listings – we include valuation summaries for many properties.

Links:

1. NIESV Fee Guide for Valuation Services – standard charges

2. TNJC Homes Request a Valuation – get matched with a registered valuer