Property valuation as many of us would be aware is a very important component whenever there is a property buying and selling. It is one of the many steps that have to be followed failing which smooth transfer of ownership from one entity to another may not be possible. While there could be some customers who might believe in the virtues of going through property valuations on their own, a majority of customers are always in favor of going in for valuation with the help of professionals. This is because of some obvious reasons. Valuation of property might look simple from the outside but it is extremely complex and complicated when one gets inside it. It requires special qualification, experience and expertise and only those with the above three attributes would be able to do a good job of it. Hence, it is always prudent and better to get property valuation done from experienced professionals.
While the important of property valuation is now known to us, let us try and find out why it is important to certify these valuers. Like any other service, valuation is a specialized job and only those who have gone through some basic procedures and steps would be in a position to perform the task to the satisfaction of customers. Further, certification is needed because it will be a wonderful tool to keep a check on the valuers and ensure that they are performing as per the needs and requirements of customers. They should be taking the customers’ satisfaction and interests fully into account. There should be a mechanism by which the performances of these property valuers are monitored on a regular basis. Towards this objective there is no denying the fact that certification of property valuers is very important.
Now coming to ways and means by which property valuers are certified, it is usually the local government authorities which acts as the nodal authority. They appoint some professionally qualified valuers under their panel. They send them across the various valuers’ offices and find out whether they are certified or not. If they are not certified it is quite possible that the businesses may have to be shut down temporarily. The valuers in question should apply for certification and go through the various steps and processes as stipulated by the local government authorities. Once these steps are fulfilled and completed, the certification is issued to them for a limited period of time.
Property valuation without any doubt is a very important formality and procedure that needs to be gone through. Unless proper valuation is done, it would be difficult to transfer the ownership of the property from one entity to another. This is because valuation of properties has many implications. While there is no doubt that getting the right information about the fair market value of the property is the main reason for property valuation, there are other important aspects which are also attached to it. When it comes to calculation of property tax or even when there is a need to find out the right stamp duty payable, valuation reports come in very handy. Additionally it would be pertinent to mention here that many property valuers also go beyond the obvious and provide a number of subjective pieces of information.These are very useful because they mention about the development of infrastructure in the neighborhood, the quality of people who make up the neighborhood, availability of amenities and facilities and other such useful information.
Given the fact that the valuation reports have a very vital and critical role to play, it is important that the professionals who are in this line should be of the best from all points of view. They should be well qualified, experienced, competent, honest and last but not the least certified. Certification of property valuers is extremely important failing which their services will not have a legal sanction. Further certification will help the authorities to oversee the functioning of the valuers on a regular basis. They will help remove any anomalies or problems that could adversely impact the customers and also the property valuers.
These valuers are generally appointed by the government agencies and it is another form of outsourcing the job. The rules and regulations are well described and the onus is on the certifiers to ensure that the valuers are following the same. This is done by regular inspection of the work being done by the valuers. Based on their performance and adherence to rules and regulations, the valuation reports are renewed periodically. The whole process is quite time consuming and would call for spending of quite a bit of time in the valuers’ place. Only when everything has been examined perfectly is the certification accorded to the service providers. The certificates have a time span after which they have the renewed. Renewal is done by having look at the operations closely once again.
The role of property valuers is extremely important when it comes to smooth transfer of ownership from one person to another. Unlike purchase and sale of other movable and immovable assets, when it comes to real estate property, each and every transaction has to be recorded in the government books and the respective stamp duty and applicable taxes have to be paid for. For all this to happen there has to be a fair market value of the property in question. While the market value could be a rough indicator of the possible value of a property, the same does not have legal sanctity. It is here that the role of property valuers becomes very important. They not only take the trouble of giving the right and fair market value of the property in question but also provide other useful bits and pieces of information that are of extreme importance and significance to the buyers and sellers.
In view of the extremely important role being played by valuers, it is important to ensure that as customers we choose only the right valuers. The first and foremost point that should be kept in mind is to choose only those valuation specialists or appraisers who have rich experience and expertise in this field. More importantly they should be certified under the law to carry out their valuation business. When a valuation company or individual is certified it certainly means that they have the wherewithal, skill set and possibly even experience to handle the most difficult types of valuations that the customers may come up with.
Further it would be pertinent to note that certification of a valuer does not remain valid for an indefinite period of time. It has to be renewed regularly. The need for such renewal is to ensure that the valuers are following all the rules and regulations that have been set forth when the certificate was issued to them in the first instance. The authorities who are permitted to issue these certifications will make personal visits to the offices of these valuers and appraisers. They will have a look at the entire property valuation process. They will ensure that things are in place and the customers’ interests are protected at all points in time. They will also ensure that the interests of other stakeholders like banks and financial institutions are also taken care of.
Before understanding the importance of certifying a valuer it would be pertinent to have a closer look at the need to go in for valuer in the first place. If you are buying or selling a home, apartment or commercial property it is important for you to ensure that it is valued by a competent and qualified professional so that the fair market value of the same can be determined. When we talk about competent we talk about valuers who have a certificate to run their business in the city, the region or the country in which they are operating. Running a valuation business is illegal and customers who take their services will be put into lot of trouble for such acts which might have been done because of lack of knowledge or ignorance. Hence, the onus lies on the customers to find out whether a particular valuer has the relevant certificate under the law to carry out the business.
Certificate of a valuer is not an easy process and takes time and effort. Usually the government outsources the entire job of certifying valuers to third party service providers. These service providers are manned and run by qualified and certified valuers and other professionals. Hence, if there is a request for certifying a valuation company, these service providers get in to the act. They visit the valuation company and have a close look at the various procedures and processes that are being followed by them. They spend quite a few days analyzing each and every process in minute details. Only when they are satisfied with the entire process do they go ahead with the certification.
The certification does not have an indefinite life and is valid only for a particular period of time, usually 4 to 5 years. The onus lies on the valuation company to ensure that they have the certificate renewed before the expiry period. The renewal process again would call for a complete examination of the entire processes and remove any bottlenecks or hindrances should there be one. Hence, at the end of the day there is no denying the fact that whether you are a small valuer or a big one, the onus lies on you to have your business certified by the competent authority before moving forward.
Valuation of properties is extremely important when there is a decision to buy or sell the same. However, it would be an understatement to say that the process is complicated and complex. Hence, it is but natural for almost all customers, however big or small they might be to outsource the entire job of valuation to experienced and competent professionals. But how does one find out whether a valuer is experienced, competent and skilled? There should be some yardsticks and methods by which this can be found out. It is therefore compulsory for all valuers to have a certificate issued from the competent authorities. The certificate certainly ensures that the valuers have gone through the various due diligence process before setting up shop. Certification also ensure that the valuers abide by the rules and regulations and are transparent in their dealings with customers and other stakeholders. It goes a long way in ensuring that the follow the generally accepted standards and practices when valuing a property.
Accurate valuation of the property is very important because it goes a long way in ensuring that the buyers and sellers take an objective decision based on the inputs. Apart from the quantitative figure available in the valuation reports, there are also a number of other areas too where the report is found to be very useful. For example, professional valuation reports also contain mention about quality of neighborhood, infrastructure development, availability of amenities and facilities and other such important information. Hence, it is important to ensure that all these information are made available in each and every valuation report that is generated by valuers. This is possible only when certification of valuers takes these facts into account.
Now coming to specifics of certification, this is usually done by the government appointed authorities who have the mandate to offer such certification. It is not done by default but is done only when the valuers go through the various due diligence processes as mentioned above. The process of certification may require the authorities to spend some time with the valuers and understand the process flow and the various steps that they are taking to ensure smooth and error free valuation. Once they are satisfied they issue the certificate which entitles the valuer to carry on business in the city.
Since valuation is a very critical and vital part of any property buying and selling, the persons who are valuing it should have the right kind of experience, expertise and qualification. To judge and ensure that they have the right wherewithal to carry on valuation business, it is very vital that they are registered and certified by a competent authority. This has to be done on a regular basis and each and every valuer who wishes to start a valuation business must go through this process. Let us over the next few lines try and find out what exactly the functions are of certifiers and how it helps customers and the businessmen who are into this business.
The main job of a certifier is to find out whether the right processes are being followed by the valuer. A good certification process also streamlines the operations of valuers and irons out grey areas that might exist. Further, it finds out whether the valuation figures that are being quoted by valuers are a true and fair representation of the market value. This is extremely important and forms the crux of any good valuer. Further valuers are also known to attach a lot of subjective information along with their valuation report. It is also the duty of the certifier to ensure that they follow the best practices while giving such subjective bits of information.
Though the certificate for the valuers has the stamp of approval of the government authorities, the entire process of examining the valuer and inspecting his processes are usually outsourced. They are handed over to people who are qualified valuers themselves and have a good reputation and experience in this line of business. They are supposed to go through a series of process before actually coming out with the valuation certification evaluation report. Only when this is vetted by the government authorities will it be possible to move forward in the matter. In fine, the role of a certifier is more of an enabler rather than anything else.
Since the importance of a valuation report is more than evident, care has to be taken to ensure that the report is accurate in form and content. It therefore makes sense to only go in for valuers who are certified under the law. When you have a real estate property valued by a competent and qualified valuer you can be sure that is correct and genuine in all respect. But who will ensure that the valuers are representing the facts at all point in time and are representing only facts? For this to happen it is important monitor the performance of these valuers on a regular basis and only by those who are qualified to do so.
This is what certification all about. Before a valuer is permitted to handle valuation of buildings and other real estate properties it is important that he knows what exactly he is doing. This has to be examined by an independent authority. Only when the independent authority is sure about the quality of services being provided by the valuer, would it offer him or the company the certification. Hence, certifications certainly have a big role to play as far as the efficiency, accuracy and factual representations are concerned.
Certifications are not handled by the government departments themselves. The entire task of certifying is handed over to experienced and capable third party service providers. They are usually finance consultants and other valuers who have certified themselves. They will be therefore in a position to examine the processes and procedures being followed and make necessary corrections wherever necessary.
At the end of the day it has to be understood by valuers that certification is not something wrong or not something that imposes unreasonable conditions and demands. It is about bringing in place a formal system and processes which should be followed by all those who are responsible for such valuation. It has to be taken as an enabling tool rather than being looked at from a negative point of view, under all circumstances.
Certifying a real estate valuer is a very important job and it has to be done only by those who have been empowered to do so. The government has some very clearly laid down rules and regulations for certifying a real estate valuer. These should be followed like a bible to enable a valuer to get a certificate which allows him the permission to carry on this business. The guidelines are quite strict and complying with them requires putting together quite a few things and tying up a number of loose end. For example, there is a need to put in place the right infrastructure and processes to enable correct, fast and continuous valuation. There could be times when the number of valuation report requests could increase to quite a few dozens. A good valuer should be able to handle such increased volumes efficiently and more importantly without compromising the quality of services. This certainly calls for a lot of training of the staff and more importantly understanding the various rules and regulations totally and fully.
The authorities may not directly take it upon themselves to get into the actual of process of working on the various modalities of each and every valuer before certifying them. They outsource the job to a few qualified individuals and institutions. The onus lies on them to examine the valuer and his functioning on various parameters. Only when it is found that all the parameters have been met is the certificate issued to them. The certificate has a limited validity period and needs to be renewed. The renewal is not automatic but subject to examination and scrutiny y of the process once again. Hence, getting a certificate as a valuer is not an easy job. However, once a company or individual gets it, there is no doubt that it will go a long way in helping the valuer to aggressively sell their services to new customers and prospects.
The main objective of certifying a valuer is to ensure that he is competent enough to perform the job that he is supposed to do. Valuation of real estate properties is a very important job and unless it is done properly and thoroughly there is reason to doubt the integrity of the entire property transaction. In fact, the valuation report given by the valuer is the fulcrum around which the entire property transaction or buying and selling revolve. The report talks about the fair market value of the property and helps both the buyers and sellers to make up a clean and satisfactory buying decision. Given the above factors it is extremely important that the right valuer is appointed for the right job. This is where the job of certifying a valuer becomes extremely important.
When certifying a valuer a number of factors are taken into account. Though still not mandatory in many provinces, a formal qualification in valuation related matter is considered a pre-requisite. Secondly, it is also important for such valuers to have put in at least a minimum number of years service in this business. Thirdly they must have the knowledge to conduct various types of valuations, both related to real estate and other properties. The processes should be well defined and there must be transparency in the way the entire thing is done. Apart from being efficient and professional, there must be complete transparency as far as these valuations are concerned
The certifiers spend lot of time examining and monitoring each and every process and if found satisfactory they accord certification to the valuers. If there are shortcomings or lacunae, then the certification is held back and the valuation companies are ask to rectify the same. At the end of the day there is no denying the fact that certifiers play a proactive and positive role which is helpful both to the valuers and the customers. It should therefore be looked at a means by which the overall performance levels of valuers can be increased.
While certifying a valuer is a must it cannot be done one and all. It has to be done only by people or entities who have rich experience and expertise in this field. Certification is a statutory requirement and therefore cannot be done away with. As a customer before availing the services of these professionals it is important for you to find out whether he or she is certified or not. Now coming to ways and means by which such certifications are given there are quite a few things that must be understood.
First and foremost, you must as a certifier understand the entire process flow starting from the time a valuation report request is received from the customers. The customers could be individuals, banks and financial institutions or even government departments. Once the application is received, the entire stage has to be monitored carefully and it must logically move from one process to another, seamlessly and with ease and least effort. This is important because tomorrow when such processes are automated they should be easily done.
It is also important to find out more about the quality of the reports that are generated from such valuers. Mere mention of the fair market value may not be enough in most of the cases. There should be a mention about the infrastructure development, the age of the property, its general condition, the area and size and the locality of the same.
It is also important that the owners of such valuation business are individuals with the highest morals and ethics because of obvious reasons. They should also be having the required qualifications which will make them a stronger candidate for instant certification. Hence, in fine, there is no doubt that certification process for valuers is quite lengthy and could take quite a bit of time to see the end of the day.