Why your report shows two different values

By Parish Rao · 26 August 2026 · 5 minute read

Owners open a bank valuation report and find two numbers, one comfortably lower than the other. It looks like a mistake or a hedge. It is neither, and understanding it tells you how the bank is really thinking.

The two figures

Market value is what the property should fetch in a normal sale. A willing buyer, a willing seller, reasonable time to find each other, no pressure on either side.

Distress or forced sale value is what it would fetch if it had to be sold quickly, by someone who has no choice. Typically a bank recovering a defaulted loan.

The second is always lower, because speed costs money. A seller who must complete in weeks cannot wait for the right buyer.

Why the bank wants both

The bank is not lending against your hopes for the property. It is lending against what it could recover if things went badly wrong.

Market value tells the lender what the asset is worth today. Forced sale value tells it what the security is actually worth in the only scenario where the security matters. Different banks weigh the two differently, which is one reason the same property produces different sanctions at different lenders.

What widens the gap

The distance between the two figures says a lot about how easily your property sells.

• How many buyers exist. A two bedroom flat in a busy area has hundreds of potential buyers. A large bungalow, an industrial shed or a very expensive penthouse has few.
• Paperwork. Anything that makes a buyer's lawyer hesitate narrows the pool and widens the gap.
• Tenants in possession. A quick sale with a sitting tenant is difficult, so the forced sale figure drops sharply.
• Condition and age. Property needing work sells slowly.
• Location depth. Areas with regular transactions sell fast. Areas where nothing has changed hands in two years do not.

A narrow gap is a quiet compliment to your property. A wide gap is the report telling you it would be hard to sell in a hurry.

What this means for you

If your loan came in lower than expected, look at which figure the bank applied its percentage to. Some lenders work from market value, some are more conservative. That single choice can change your sanction significantly, and it is a legitimate question to ask before you accept an offer or approach another lender.

It is also worth reading as information about your own asset. If the report shows a very wide gap, that is a genuine signal about liquidity, and it matters if you ever need to sell quickly yourself.

The honest use of this number

Do not treat the forced sale value as an insult, and do not treat the market value as a promise. One is a normal sale, the other is an emergency. Your property is worth the first and secured against the second.

Read how we prepare bank format valuations, or if the figures disappoint you, see what to do about a low bank valuation.