It happens more often than not when people ask me what I do for a living. “I’m a Property Valuer.” … “Oh, you sell houses” is generally the typical response or they immediately go “How much is my house worth?” No, we are not real estate agents or property brokers neither do we thumb-suck values. Neither are we mystical beings with supernatural powers of assessment.
The valuation process is somewhat more complex as Property Valuers look at prevailing market trends and conduct an analysis based on elements of comparability. Essentially this means that we look at the potential to substitute one property for another.
Imagine if you will, two neighbouring homes located in a new housing development, each identical in terms of layout and internal finishes. Essentially there is no difference between the two, apart from being situated on neighbouring stands. The differences in this instance would therefore be considered negligible and a prudent buyer would not likely pay more for one than the other.
As Property Valuers, it is our job to determine what potential selling price these homes might achieve by analysing the prevailing market trends of similar substitutes at the time of the valuation. Where there are differences, the Valuer might consider an upward or downward adjustment (this will be addressed in a future blog). For commercial and specialised properties the process of analysis and elements of comparability become far more complex as various approaches and methodologies may be required however, the underlying principle remains the same.
While this example is rudimentary it provides the underlying principle of what a Property Valuer does.
If you are a Property Valuer, I would like to know what other misconceptions you have come across.
