Category: Insights

Elements of a Qualified Professional Valuer

Education:
Over several decades the valuation profession has developed generally recognized
valuation methods and techniques, commonly known as a body of knowledge. Conformance to these generally recognized methods and techniques promotes consistency in the work product of valuers.

Experience:
A professional valuer will have significant experience in applying the generally recognized valuation methods and techniques learned in the classroom to the marketplace.

Examination:
A professional valuer has been tested to ensure a thorough understanding of the subject matter and competency.

Continuing Education:
A professional valuer continues to take educational offerings on a periodic basis to ensure awareness of changes in valuation methods and techniques, technology and the marketplace.

Adherence to a Written Set of Ethical and Performance Standards:
Following an established code of conduct focusing on conduct and ethics, is a cornerstone for a professional valuer.

Elements of a Professional Appraisal

Impartiality and Objectivity:
A professional valuer must be independent, impartial, and objective. A professional valuer’s opinion of value must not be biased.

Ethical Conduct:
A professional valuer will adhere to a generally recognized code of ethical conduct.

Confidentiality:
A professional valuer will treat confidential information as such. When in doubt, the valuer will always check with the client to determine what is or is not confidential information.

Competency:
A professional valuer should have knowledge and experience in performing similar assignments.

Request a Valuation
Simply visit http://gafarrell.com/valuation-request/ or call 624-8628

Protecting Your Interests
A valuation can be key to protecting your interest in many financial dealings. When there is a question as to the value of your property, there is also a risk involved such as selling too low or paying too much.  A professional valuer helps you manage your interest by providing a well-developed and documented unbiased opinion of value upon which you can base your financial decisions.

What are Valuations Used For?
Valuations are used for many purposes. Some common uses of valuations are:

Mortgage Lending
Most mortgage transactions involve a valuation.  Generally, financial institutions will only approve a mortgage after contracting for an independent valuation to document the value of the property which serves as collateral for the loan.

Investments
Investors generally require professional valuation services prior to acquiring investment real estate, art or other property.

Insurance
Valuations are often requested by insurance agencies to determine the insurable value of the asset.

Statutory Valuations
Typically a valuation is conducted for establishing a value of a property to be placed in a Balance Sheet of a company or on which to pay stamp duty.

What is a Valuation?
A valuation is a professional valuer’s opinion of value. The preparation of a valuation involves research into appropriate market areas; the assembly and analysis of information pertinent to a property; and the knowledge, experience, and professional judgment of the valuer.

Request a Valuation                                          
Simply visit http://gafarrell.com/valuation-request/ or call 624-8628

In our last post, we looked at some of the common errors buyers make so that you can avoid them.  Shown below are some others.

1. When you finally decide on a property, get a valuation before signing the agreement. If not, then try and have a clause inserted in the Agreement that allows you to walk away from the deal if the valuation report shows a figure lower than the price in the Agreement.  If this clause is not there, your loan amount could be affected and could result in your losing your deposit!
2. It is very important that you get an attorney before you sign the agreement. Let your attorney review the agreement and advise you if there are any changes necessary.  It should be mentioned here that should the attorney that is preparing your Deed of Conveyance or Assignment be the same one as the bank uses to prepare the Deed of Mortgage, then the fees for the latter will be discounted 50% assuming the property does not fall under the Real Property Act (RPA) formerly Real Property Ordinance (RPO).
3. Buying a home might be the biggest investment of your life and at times, the task can seem very daunting to newcomers. It is a good idea to obtain guidance on the different steps and documents necessary.  If you know someone experienced in purchasing real estate, (e.g. an attorney, real estate agent, banker, financial consultant), ask them for assistance if necessary.

You can also call G A Farrell & Associates Ltd. and ask about their MAP (Mortgage Assistance Plan) that is available to ALL their clients that require a valuation report to purchase a property.  G A Farrell & Associates Ltd. will offer guidance through the entire process at no charge other than their normal valuation fee.

In a recent post, we gave some of the steps in Buying a Home.  We will now look at some of the common errors buyers make so that you can avoid them.

1. Decide early what you need (size) and plan also for future before you start looking at homes. For example, will you need a larger home because –
   • Your children are growing up;
   • You plan to have more children soon;
   • Your elderly parents or in-laws will be moving in with you shortly.
2. Get pre-approved from the mortgage-lending-institution of your choice. This way you will know exactly how much you can afford to pay for a home.  This will not only help you with your real estate agent as he or she will realise that you are serious and will therefore try harder to find a home that you like, but also could assist in the negotiations with the seller as they know the chances of the deal closing are very good.
3. Shop around as it is generally a good idea to look at several homes before making a decision. Besides seeing what is available, it also gives you an idea as to the value of homes.
4. Do not be afraid to negotiate as it is the key to get the best deal possible! If you know why the owner is selling, it may help you in your negotiations.  Similarly, do NOT reveal too much information about your motivation for buying as it could work against you!

When calculating the price of the home, do not forget to cater for Closing Costs on the transaction.  These can come up to a significant amount depending on the selling price of the property.  For a free estimate of these costs, please feel free to contact us.

(To be continued)