Who May or May Not Determine a Property Value?
2016/12/01 By By UniqueCo
A reader on our Uniqueco Property Valuer Facebook page has raised the following question: What is the difference between the value placed on a property by an Estate Agent and a Property Valuer?
As a valuer for the past sixteen years, I want to highlight one thing and that is that each and everyone or organisation operating in the property industry, whether an Estate Agency, Auctioneer, Fund or Asset Manager, Financial Accountant, Developer, Banker, Broker, Economist, Private Owner or Investor, you name it, is important and they are all essential in a growing and sustainable economy.
Of course, everyone is entitled to their own opinion on the values and trading of immovable property within our local property markets and opinions vary as every professional has a different reason for valuing a property.
It is interesting how many of these parties tend to criticize the Property Valuer’s decisions, and of course the other way around as well, but we should try to be on the same side and a team.
However one thing the property sector must try to get clarity on and that is only the registered Property Valuer is legally entitled by means of legislation, Section 22 of the Property Valuers Profession Act 2000 (No 47 of 2000) to determine a value for financial decision making.
Indeed it is an “act” and supported and monitored by law. As a Professional Valuer, we are legally entitled to provide a valuation service, and or disagree on the validity of a valuation conducted by a party or person not supported by this legislation.
If any valuation decision is given by an individual or organisation not legally bound by this law, their opinion is likely to be flawed as they quite probably do not have access to much of the information available to the Professional Valuer. They are not supported by indemnity insurance coverage and the ‘valuation’ will not stand up in certain circumstances, such as a court dispute.
There is a mathematical conclusion and historical cycle in time value of money within each property valuation to be considered individually, compared with comparative research and motivation.
Think like a tycoon. A tycoon does not gossip or pay attention to hearsay and doesn’t build an empire on alleged or overheard facts, which have been taken out of context. Decisions must be based on actual recorded facts and professionalism.
It is my personal goal to encourage the property industry to support and rely on the valuable power of experienced and independent professional property valuation assistance, and to improve the standards and qualify more professionals in our field.