RBWM: Concepts and Practice · Part E: Home Loans

Chapter 24: Valuation of real property

What a home is worth to a lender: the kinds of value, what drives them, the methods, and the valuer’s report.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 24.1Why a lender values, and which valuep. 325
• 24.2What drives value; measuring a flatp. 326
• 24.3The four methods, and when each fitsp. 327
• 24.4The Kelkars’ flat, valued three waysp. 328
• 24.5From value to loan: the report and RBI’s rulesp. 329
• Exam traps and quick checksp. 330
• Practice: 16 questions in three roundsp. 331
• Answers, with every wrong option explainedp. 333
• Make it stickp. 335
• Chapter 24 on one pagep. 336

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.