Valuation
Direct definition
Valuation is the process of estimating a property's market worth, commonly through an appraisal, automated model, or comparative market analysis.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Lenders rely on some form of valuation to confirm a property supports the requested loan amount. Methods include traditional appraisals, appraisal waivers, automated valuation models, and desktop or hybrid appraisals, with the method used varying by lender, program, and transaction.
Why it matters
The valuation method used can affect timelines and, in some cases, whether an in-person appraisal is required at all.
Where you may see it
- Loan file
- Appraisal or valuation report
A real-world example
Educational and illustrative only
A common misunderstanding
Valuation is not always synonymous with a full traditional appraisal — several different methods can be used depending on the lender and loan type.
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- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026