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Property valuation in Georgia: when you need one and how it works

The word "value" in property conversations means three different things, and they get mixed up constantly. Which one you need determines both the order of steps and whether an authority or a bank will accept it.

Three different figures

When people ask what a property is worth, three figures are in play, and they do not coincide.

• The contract price. What the seller and buyer agreed between themselves. It can be anything and proves nothing on its own.
• An independent valuer's report. An opinion on market value, prepared in the prescribed form. This is what authorities and banks ask for.
• The register entry. Details of the property: floor area, permitted use, owner, encumbrances. The register records characteristics, not a market price.

The confusion usually runs like this: someone assumes that because the property is registered, its value must already be recorded somewhere. It is not - that takes a separate report.

When a valuation is genuinely needed

Residence permit by investment

This basis carries a value requirement for the property, and it is evidenced by a valuer's report, not by the contract price. The figure itself is set by legislation and revised, so it is checked on the date of the application.

A common mistake hides here: someone buys with the transaction price in mind, and at filing it turns out the valuation produced a different figure. The sensible order is the reverse - first establish whether the property clears the threshold, and only then go to the transaction.

A mortgage

The bank decides the loan amount from the valuation, not from what you agreed to pay. The valuer often has to be one the bank accepts.

Inheritance and division of assets

Where there are several heirs or co-owners and a single property, the valuation is the basis for calculating shares and compensation. The same applies when spouses divide assets.

A court claim

In damages cases and in disputes with developers, the size of the claim is evidenced by a valuation. A report produced after the fact and without an inspection is weaker in court than one made at the time.

Before buying - for yourself

Not obligatory, but sometimes the most useful reason of all: to find out whether the asking price matches the market before you pay a deposit.

Who may carry out a valuation

A report is not accepted from just anyone: there are requirements for valuers and for the form of the report. One prepared by someone who does not meet them will simply be refused by the authority or the bank, and the work has to be redone at your own cost.

So the first question is not "how much does a valuation cost" but "will the recipient accept it". The requirements for the valuer and the report are clarified before ordering - with the authority or the particular bank.

Why floor areas do not match

The area recorded in the register and the area you measured yourself or saw in the listing do not always agree. The usual reasons:

• Different ways of counting. Balconies, loggias, terraces and common areas may be counted differently, and the "area" in a listing often includes what the register does not.
• An unregistered alteration. A wall was removed or a space added, and it was never entered in the register.
• An error in the entry - these happen too and are corrected through a separate procedure.

A mismatch in area matters not in itself but because price is calculated from area, and unregistered changes become the buyer's problem. More on this in the explainer on checks before buying a flat.

What a valuation does not do

• It does not confirm ownership. A valuer speaks to value, not to whose property it is or whether encumbrances sit on it. That is a separate check.
• It does not lift an encumbrance and does not correct the register entry.
• It does not guarantee the authority will accept it. Whether the documents suffice is decided by the body reviewing the application.
• It does not replace a technical survey. The condition of the structure and services is an engineer's work.

What to prepare for the consultation

• The address and cadastral code of the property.
• An extract from the register - area, permitted use, owner, encumbrances.
• What the valuation is for: a residence permit, a mortgage, a division, court, or yourself.
• If it is for an authority or a bank - their requirements for the valuer and the form of report.
• The documents under which the seller became the owner.
• Details of any alterations and whether they were entered in the register.
• The actual floor area and how it was measured.
• Timing: by what date the report has to be ready.

Disclaimer. This material is for reference, sets out the general procedure and is not legal advice. It has been prepared without regard to the circumstances of any particular matter and cannot serve as a basis for decisions on filing documents, entering transactions or taking other legally significant steps. Reading it or relying on it does not create a lawyer-client relationship. Document requirements, fee levels and time limits are set by Georgian legislation and secondary rules; the law and the practice of applying it change, so the currency of any information is checked on the date of the enquiry. Decisions in state procedures are taken by the competent authority, and no outcome can be guaranteed.