Valuing a property is very important when applying to a bank for a mortgage for two reasons:
The first reason is that the bank can confirm the value that the property has in the real estate market. This ensures that it can cover the debt in the event of default of payment by the mortgage customer.
Secondly, appraisals are used to set the amount of financing that the bank will grant. Generally speaking, this is 80% of the appraised value.