There are a number of reasons why property valuation is considered very important for any real estate buying and selling. Unless the buyers and sellers are sure about the fair market value of the property they will not be able to take a final call on the buying or selling decision. There is no doubt that the market is a good indicator of the rough market value, but this is only indicative in nature. It has to be certified and authenticated by a certified, experienced and capable professional. That is what the main role is of property valuers and appraisers.
Whenever a property comes up for valuation, the valuer starts off by asking for the various documents pertaining to the property. He goes through the same carefully and in most of the cases examines the property physically. The main purpose of physical examination of the property is two-fold. First and foremost it helps the valuer to ensure that the measurements, location and other aspects of the property are exactly the same as available in the property documents. The next important role is to find out more about the overall development of infrastructure in the area where the property is located. Though this is not the main purpose of any valuation report it is something that is found very useful to the buyers in particular. The availability of other amenities and facilities is also something that valuers usually make a mention in their valuation report. Quite often valuers also go a step forward and try to come out with valuation of similar properties in the neighborhood.
A combination of all these bits and pieces of information without any doubt plays a big part in enabling the buyers in particular to take a firm decision on the property in question. Apart from the above main roles and responsibilities, good valuers are those who will be in a position to handle almost any type of valuation. Whether it is simple vanilla valuation of complicated backdated or retrospective valuations they should be able to handle everything professionally. Apart from real estate valuation, professional valuers also help in other types of valuations. These could include valuation of plant and machinery, storage spaces, commercial complex and buildings, immovable assets like shares and stocks just to name a few. There are many valuers who also help customers in compensation valuations. Last but not the least good valuers are those who are able to offer various methods and tools for valuing properties and other assets.
Before understanding the need to identify the right valuer it is important to have a reasonably good idea about the importance and significance of valuation in the first place. Valuation is mainly done to have the right and authentic information about the fair market value of a property that is either being bought or sold. Since any real estate buying or selling could run into thousands or even millions of dollars, it is very important for us to be sure that the transactions is being done at the right price. Though the market could give an indicative rate of the property in question there is a need to have it corroborated from a professional valuer. Hence, there is a big importance of valuation report from a qualified, certified and experienced valuer.
Now that we have a reasonably good idea about valuation and its importance, let us try and find out the various ways and means by which we can identify the right valuer. The first attribute of a good valuer is that he must have rich experience in this field. As a rule of the thumb, customers should only look for valuers who have put in at least ten years or more into their valuation business. Experience counts a lot in this business and some of the most complicated and tough valuation cases are best handled by valuers who have the right experience in this field.
The next important point that should be kept in mind is the need to have a formal qualification and a formal certificate. Without these two things not being in place, it would always be better to stay away from such service providers. Thirdly, a good valuer is one who must be able to offer all types of valuation services to their customers. They must also be well aware with the various methods of valuations. Whether it is revenue method of valuation, cost method of valuation or something else, they must be able to meet the customers’ requirements perfectly well.
It is also important that modern day valuers must make effective use of the internet technology apart from automating the entire valuation process. This will go a long way in offering valuation at a cost effective pricing and will also save on valuation time.