It may be that a valuation is required for mortgage purposes. At this stage the reader may not know what a mortgage is, but, briefly, it is a loan for which the security is an interest in property. Most people who purchase property have insufficient cash to pay all the
purchase price. They pay as much as they can afford out of their own funds, borrowing the balance from some person or institution which has money to lend. The lender will not wish to lend money unless there is some sort of security which makes it relatively certain that their money can be retrieved should anything go wrong with the transaction. The loan is "secured" upon the property which is being purchased and the lender will be able to claim the money lent out of the value of the "mortgaged" property should the borrower default in any way.