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.