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Property valuation is a very important component of any real estate business. It is also used for other types of valuations too. There are main reasons why property valuation is considered important. The main reason for it is to ensure that the stakeholders get the right information about the fair market value of the property that is being either bought or sold. Many customers are of the opinion that the market itself will be able to give a good indication about the fair value of a property. Hence, according to them spending money on property valuation is a wasteful expenditure. 

However, the above logic is only partially true. Many a times when the contract has been signed and has reached the final stages of execution, it has been found that the value of the property is either too high or too low when compared to the fair market value. In such situations there could be lot of problems and the entire contract might run the risk of being abandoned. To avoid such situations spending a few hundred dollars will not be a bad idea to ensure that nothing like this happens in the final stages. Further, property valuation is also need for other purposes such as calculation of property tax, arriving at the stamp duty amount payable just to name a few. 

Now that we have a clear understanding about the importance of property valuation, there is a need to regulate the same because of various reasons. Regulation is a must for any service that impacts thousands of customers monetarily. Today you have regulators overlooking banking and financial institution functioning. There are regulators in the insurance sector and also in the telecom sector. In the same way there is a need to regulate property valuation. 

The main objective of such regulation is to ensure that the service providers follow some laid down guidelines and rules when conducting their business. The main objective of any real estate valuer should be to give the best to the customers in terms of quality of service, adherence to time lines and accurate of information that is provided. To ensure that this happen, regulators could be mandated with the task of monitoring the valuers on a regular basis. The objective of such regulation is not to find faults but to ensure that they are running their business properly and all guidelines are being followed as per the rule books.

Whenever there is a need to change ownership of a property from one entity to another, there are quite a few important points that should be taken into account. Many legal and property documents have to be prepared and executed. Additionally there are some statutory and compliance related issues that should also be taken into account. Since the entire process is complicated, it is important to take professional help to get a move on. Amongst the many professionals, the role of property valuers is very important. While there is no denying this fact one should have some basic information and understanding about the roles and responsibilities of a property valuer. Only when these basic facts are known would it be possible for us to find out why it is necessary to regulate their functions.

The main role of property valuers is to give an accurate figure about the fair market value of the property in question. This is done using various methods and taking inputs from various sources. Based on these valuation reports buying and selling decisions are taken. Further it would also be pertinent to point out there are quite bit of subjective information in professional valuation reports that are also very useful. For example a good valuers’ report talks about the quality of the construction, the development or otherwise of various infrastructure and also the availability or absence of basic amenities and facilities. Hence, there is not doubt that there are a number of benefits accruing to the various stakeholders as far as these valuation reports are concerned. 

However at the same time there is also the need to ensure that the valuers are regulated at all points in time. Regulation of property appraisers and valuers is as important as regulation of banks, insurance companies, telecom companies just to name a few. The main objective of these regulators is to ensure that they are following the stipulated rules and regulations and are acting with the customers’ best interests in mind. Further when you have a regulator inspecting the way valuers works it goes a long way in setting their house in order. Valuers would be able to better define the various processes and also ensure that it is working on the ground. Further it would also be pertinent to mention here that these changes will also bring in more productivity by removing all the unwanted wastage of time and human resources. Hence, there is no doubt that regulating valuers will be to everybody’s interest.

When buying or selling real estate properties one has to go through various formalities and procedures only after which the property will be transferred from the seller to the buyer. Amongst the many formalities that are considered very important and vital there is no doubt that property valuation is considered to be extremely crucial. The main role of a property valuer is to ensure that all the stakeholders get the right information about the fair market value of the property in question. While this might seem easy on paper getting it done properly on the ground is not going to be an easy job. There are many inputs required and many tools and techniques have to be used to arrive at the fair market value. Apart from helping the buyers in particular to take a firm decision on the transaction, valuation reports are also useful in many other ways. They go a long way in helping calculate property tax and also stamp duty amounts applicable. 

Given the crucial and important nature of the functioning of valuers, it is very vital that their roles are under scrutiny on a regular basis. There should be an authority that can regulate the functioning of property values across the country. This is no way an attempt to cause aspersions or doubts in the functioning of these professionals. Nonetheless, there is a need to ensure that the valuers are playing by the rule book and the customers are getting the right value for money. Regulating the functioning of valuers will also go a long way in weeding out undesirable elements, particularly valuers who are not certified but still continue to run their business. 

There are specific government-appointed regulators who are authorized to regulate the performance of property valuers. They have specific mandates from the authorities and they have to ensure that they are able to honor these mandates. The regulators are usually made up of professionals from the real estate industry and include a number of qualified, certified and experienced property valuer and appraisers. Once they have been given the task of regulating the functioning of valuers, their job is to visit these regulators and spend time understanding their procedures and processes. They do spend quite a few days thoroughly understanding their total functioning. They also interact with customers and other stakeholders to find out whether the roles being performed by the valuers are customer friendly, transparent, honest and in line with fair and ethical business practices.

When we are planning to buy or sell a real estate property it is quite obvious that we have to go through a number of processes and steps. It is important to understand that all these processes have a legal angle to it and therefore care and caution should be exercised. Since the processes are extremely complicated and tough in most of the cases customers find it prudent to outsource it to professionals who have experience and expertise in this field. Amongst the various processes there is no doubt that valuation is often considered to be one of the most important. Property valuation is mainly about finding out the fair market value of a property that is being either put up for sale or purchase. Additionally, based on the valuation reports, property tax amounts are calculated and even stamp duty amount payable are also decided. 

In view of the highly critical and vital nature of functions being performed by valuers and appraiser, it is very important that there is always an element of honest, transparency and fair play. To ensure that this happens continuously, there is a need to regulate the functioning of these service providers. The main objective of property regulators is to ensure that these service providers are playing by the rule book as far as valuation is concerned. They ensure this by paying regular visits to the valuers’ office. They examine the entire process flow and pay attention to accuracy of information, correctness of information and also the genuineness with which the information are being generated. 

This process does not take place every day. Whenever a valuer has been given a certificate to operate in this business, he becomes duty bound to subject his processes being examined by government appointed and certified regulators. These regulators usually visit the valuers once or twice in a year. However if there is something wrong or fishy then the regulators have the powers to go deep into the subject. If something wrong or untenable has been found, the regulators have the power to temporarily suspend or even permanently cancel the certification. Hence, the onus lies on property valuers that they are always adhering to the rules and regulations stipulated by the regulators. The main objective is not fault finding to ensure transparency and openness in all property valuation requests.

It is a known fact that valuation forms a very important backbone as far as the entire real estate buying and selling process is concerned. Since the process is complicated and complex to say the least, it is not possible for end customers to do it using their own skills and experience. They will have to depend on qualified valuers and appraiser to do the job. The valuation of the property has to be done accurately after taking into account lot of factors and inputs. Various tools and techniques are used for accurately reporting the fair market value of the property in question. The valuation report plays a big role not only in the buying and selling transaction but also impacts property tax, stamp duty valuation just to name a few other important aspects.

In view of the importance of property valuation, it is very critical that only qualified, experienced and certified valuers handle the job. It is therefore important for having a setup to regulate and monitor the functioning of valuers. This is becoming mandatory in many provinces and regions there are certainly quite a few benefits that could come out of it. First and foremost, it will be a good tool to ensure that the interests of the customers are protected at all points in time. Secondly, it will also help the valuer to find out grey areas in his entire process and ensure that they are ironed out or removed from the system. 

It will also go a long way to ensure that the valuation figures are not under reported or over reported which could cause damage either to buyers or sellers. Such wrong reporting of figures could also have a cascading effect that could impact the property tax calculation and stamp duty agreement related matters. Taking these above facts in to account, it is very important to take the necessary steps to ensure that property monitoring and regulating is done on a regular basis. In a normal situation the regulatory certificate is valid for a period of time after which it has to be renewed subject to meeting some criteria and conditions. At the end of the day, there is no doubt that regulating valuation business is a win-win situation for customers, real estate valuers, banks and other stake holders.

Business Name - Sydney property Valuation

Address -

Suite 16, 323-327 Pitt Street

 

Sydney. NSW 2000

Phone No - (02) 8599 9840

There is hardly any doubt that valuation plays an extremely important role whenever there is a need to buy or sell real estate properties. Apart from helping the stakeholders to have a clear idea about the fair market value of the properties, it also helps in many other ways. It goes a long way in finding out the property tax payable and also for ascertaining the stamp duty payable for executing land transfer agreements. Hence, there is no doubt that valuation has a very important role to play. But it is also equally important for somebody or some authority to keep a watch on the activities of valuers. This is because if there is something wrong going on with them, there has to be some mechanism by which it can be found out and the necessary remedial action taken. 

Towards this objective, the role of a regulator or valuation business is very important. They play a big role in ensuring that the business is run properly and all the required norms and regulations are being followed. In fact it would not be out of place to mention here that very soon the role of valuers would come under closer scrutiny. A day will not be far off when it will become mandatory to regulate the operations of valuation companies and individuals. However, this will happen only when valuers are not only required to be certified but should also posses the desired qualification and education. 

There are certainly a number of benefits and advantages when one get subjected to such regulations. They will help the companies to streamline their operations and ease out the areas where there needs to be some improvement. Hence, it is important for valuers to ensure that they are looked upon as enablers rather than being looked upon someone who is breathing down their neck. The regulators play a very positive and proactive role in ironing out the areas where there needs to be improvement. They will help them to fall in line as far as following the rules and regulations are concerned. So, taking the above points into consideration it is in the interest of the valuers to subject themselves to such regulating authorities on a regular basis. It will certainly help them to become more customer focused and more regulatory compliant.

The biggest benefit of having a regulator for valuation business is to ensure that there is honest, transparency and ethics being followed while customers are being served. Valuation is a very important task because based on the report a lot of decisions are taken. The buyers make up their mind whether or not to buy a particular property. The stamp duty payable, the property tax payable are a few more important things which are also dependent to a large extent on the valuation report. Hence it is important to ensure that the reports are true representations of the fair market value of the property in question.

Further, there are also many subjective pieces of information from the valuer which again could impact the decision to buy or not to buy a property. Hence, it is important to be sure that the valuer represents only the facts. This is done by the valuers who check on their operations every now and then. They go deep into each and every process of valuation and confirm that they are in line with accepted methods of valuation. 

The valuers should also adhere to certain code of ethics failing which their certification is liable to be suspended or even cancelled. This again is done with the active participation and supervision of regulators. Hence, there is no denying the fact that regulators are not an impediment but work as enablers for smooth functioning of the entire business of valuation. They point out grey areas where correction is necessary. Therefore at the end of the day, the onus lies on the valuers to take the initiative and look for regulators. These regulators should spend quite a few days and look at each and every aspect of valuation. It will over a period of time stand in good stead for the valuers and help them to be more successful and customer focused.

Given the importance and significance of valuation, there is undoubtedly a big demand for valuers across the board. Hence today it is quite common to come across a valuer almost at each and every street bend. Given the plethora of valuers who are serving their customers, there is the need to ensure that they are all brought under one umbrella. This is important to ensue that they perform well as far as professional ethics and morals are concerned. As we have regulators for the financial and insurance sectors there is a need for regulating the valuers business. Let us over the next few lines try and find out how they can play a big role in making it sure that the business runs properly.

The main job of any regulator or valuation business is to ensure that the right norms and processes are being followed. All valuers are required to work under a set guidelines and laws and it is the role of these regulators to see that these guidelines and laws are being followed. Another important job of regulators is to examine the various process flows that are being followed by valuers and to point out any discrepancies wherever there are. 

Further it would also be pertinent to point out here that the role of regulators is not to supervise or breath in the neck of valuers. Their job is to ensure that proper processes are in place and they are being followed regularly. They are more of enablers than anything else. Regulators of valuers are appointed by government authorities and here too there are some strict pre-requisites that need to be followed before they are offered this job. In fine, the role of regulators as far as valuers are concerned will only get more focused over the years to come.

The main role of a regulator is to ensure that the property valuer acts according to the laws and rules prevailing in the city where he is running his business. Secondly, the job of these regulators is to find out whether they are certified and have the required permission to carry on the job that they are supposed to do. Further monitoring their performance on a regular basis is also the role of a good regulator. Quite often many valuers mistake the role of a regulator as that of a policeman or inspector who is there to find faults and look at only the negative aspects of their business. This is not exactly right because good regulators play the important role of enablers and help the valuers to run their business properly, ethically and professionally. They try and point out the grey areas so that the same can be ironed out and perfect services can be offered to the customers. 

It would also be pertinent to mention here that performing the role of a regulator is not very easy. While they should not be seen breathing down the necks of valuers, at the same time they must have their own ways and methods of monitoring the performance of valuers and pointing out mistakes or slip-ups if they take place. They also play a big role in helping the valuers to streamline their entire operations. This is bound to take time and could call for spending quite a bit of time in the valuers’ place and setting things right. Hence it is quite normal for many regulators to spend quite a few months at the valuation companies’ places to see that things move in the right direction. Once perfection is achieved the role of these regulators is all about monitoring and overseeing their role and preventing any slip-ups once again. Hence, the role of regulators is very important in the real estate valuation business.

The main reason why there is need to regulate property valuation is to ensure that they perform their duties properly, ethically and professionally. The role of property valuers is extremely critical and hence the report that they dish out should also be factually correct and there should not be any mischief or foul play in such reports. Further the valuation reports should be given only after going through the entire process in its full. There are a number of important steps that need to be followed. The property should be measured, the details should be checked with the revenue department and there should also be some subjective pieces of information in each and every valuation report. Last but not the least, the valuation report should reflect only the fair market value of the property and nothing else. 

To enable this to happen on a continuous basis there is a need to constantly monitor the performance of real estate valuers and that is the main function of the valuation regulators. In fact their role should be looked at from a positive frame of mind rather than accusing them of being inward looking and trying to point out mistakes. Most valuers take the inputs from these regulators quite seriously and implement them with the least possible wastage of time. This is because they know that these suggestions and advices will go a long way in increasing the reputation and goodwill of valuers and will play a big role in increasing new business prospects while keeping in place the existing groups of customers.

The main role of a regulator is to ensure that the valuers are playing by the role books when it comes to valuing a real estate property or even other movable and immovable properties. The report that is submitted by valuers is often treated as the bible and hence good and professional valuers are those who are able to be true to the faith that is being reposed on them. They should ensure that only the right rules and regulations are being followed for valuation. The regulators will also look into the other aspect of such valuers. They will find out if they are registered and certified under the law. Further they will discover whether the valuers or those who run the business have the right kind of qualification to undertake complex and difficult valuations. 

It is also important for regulators to have a close look at the entire process of property valuation. This should start from the time a valuation report request lands on the table of valuers. It will look into the entire process flow, the checks and controls that are in place, the time taken for issuing the valuation report, the kind of reports that are available in valuation reports just to name a few 

In most cases the regulators spend at least a few days at the valuers place trying to fully understand the processes and the safeguards that are in place. They usually perform the role of enablers rather than someone who is there to hinder the entire valuation process. They will point out the mistakes and shortfalls if any and will also suggest remedial action to take care of the same. Hence, there is no doubt that these valuers have a very proactive role to play as far as monitoring the role of property valuers and appraisers are concerned.

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