If you are on the lookout for the right property valuer, as a customer the onus is on you to have the right knowledge and information about these service providers. Unless we know what to expect from a good valuer we will not hire the right persons. Further it is also important that we have some basic idea about the entire process flow as far as the roles and responsibilities of property valuers are concerned.
Before going through the process flow of a property valuation professional, let us try and understand what his main roles and functions are. The main job of a property valuer is to provide a fair value of the property that is either being bought or sold. There is no doubt that the market will also be able to provide some rough information about the prevailing rates of a property. However, these rates are just for information sake and cannot be legally enforced. Hence, whenever there is a need to transfer property from one person to another it is the valuers’ report that plays a very important role. Further, valuation reports also have subjective information that are very useful to the buyers in particular. Well presented and informative valuation reports have a mention about the quality of infrastructure and the development of various amenities in the locality where the property is situated. This goes a long way in helping the buyers take an informed decision.
Let us now look at the various processes that are involved when a property is valued. It is a pretty simple process. Whenever a request for valuation is received from the customer, the valuation professionals ask for some basic property details. Once it is received, they usually make a visit to the site and examine the property purely from the valuation point of view. They have a look at the size of the property, its age, the exact location and from other parameters. They then use various tools and methods to arrive at the fair market value of the property in question. They also take inputs from markets and also have a look at the value of similar properties in the same location.
They usually send the valuation report in a confidential format to the customer. It is also possible that many banks and financial institutions also seek these valuation reports for credit appraisal purposes. Here too the reports are sent in a confidential format and is available only to the concerned officials of the bank.
Buying a real estate property is a completely different ball game and is unlike buying and selling other movable and immovable assets. There are quite a few formalities that have to be gone through. Amongst the various formalities the role of property valuation is considered very important. While the main objective of any property valuation is to ensure the fair market value of the property in question, there are a number of other value additions that the customers can expect. Over the next few lines let us try and find out the various duties that could be expected of a professional and successful valuer.
The foremost and most important duty of a valuer is to establish the fair market value of the property that is being bought or sold. Though the market could play a role in giving a rough indication, this will not stand in good stead as far as legal enforceability is concerned. It is therefore important to look for qualified and certified valuers who valuation reports serve the purpose. It would be pertinent to mention here that a good valuation report serves more than one purpose. It is the basis for calculation of property taxes and it is also useful for having a fix on the stamp duty payable.
Apart from the above, a good valuer will also go beyond his normal call of duty. He will play a big role in helping the buyers in particular to get some qualitative and subjective pieces of information which will be of help to him. Good and professional valuation reports will talk about the state of infrastructure in the location. It will also make a mention of the various amenities and facilities that are available in the area. This will help the buyer to take a decision whether to go in for such a property or not.
It would also be pertinent to mention here that many valuers are masters in valuing any property, however complicated the case may be. When it comes to backdated or retrospective property valuation, you must choose valuers who have the right experience and expertise to handle the same. It is also the case with compensation valuations where the property owners are compensated for land that is taken away by government authorities. This is usually done to complete some socially relevant projects that will benefit society as a whole. Hence, you must choose a valuer who can handle any type of valuation.
Unless one understands the importance and significance of property valuation, it would be difficult for them to comprehend the need for quality valuers. Unlike common perceptions, valuation is not an easy job or it is not something that can be done by the customers themselves. The main purpose of property valuation is to find out the fair market value of the property that is being put up either for sale or purchase. The fair market value helps all the stakeholders. It helps the buyer to have a comfort level about the rate at which he is buying the property. For the government authorities a quality valuation report from a certified valuer helps them to have a fix on property tax that is to be paid on the property once the transaction is over. It also helps to have a better understanding of the stamp duty that is payable on the property transaction.
Since the importance of valuation is now known to us the next step is to find out ways and means by which we can hire the best talent that is available. This is not an easy job because today you are likely to come across dozens of valuers who are quite qualified and experienced. Hence, choosing the right service provider from so many choices could certainly be a tough job. Here a few important points that could help you to choose the right property valuer.
To begin with as a customer you should look for valuers who are experienced, apart from having the right certificate and qualification. It is also important for customers to look for valuers who can handle almost any type of valuation, however simple or complex it might be. There is also the need to look for valuers who are comfortable with various methods of valuations taking into account specific needs and requirements of customers.
Timely submission of reports and returns is another important aspect that must be kept in mind while hiring property valuers. This is easier said than done because at times the timelines required by customers could be very tough and challenging, which the valuers must be able to honor. Last but not the least, customers must look for valuers who can offer their services at competitive rates without compromising on the quality of services that they offer.