Property Valuation

So, What is a property valuation?

A property valuation is an assessment of your property’s value, based on the location, condition, and multiple other factors. Your valuation will be carried out in person by a professional surveyor who will take notes and photographs, and then send you a valuation report.

Valuation of a property may be prepared by different methods. The appropriate application of a method of valuation depends on the nature of the property as well as the availability of reliable data. When the value arrived at by different methods are wide apart and judgment cannot fix with reasonable certainty which out of them is close to the more accurate market value, an average of two or more than two methods of valuation is applicable.

Real estate appraisal, property valuation, or land valuation is the practice of developing an opinion of the value of the real property, usually its Market Value. The need for appraisals arises from the heterogeneous nature of property as an investment class: no two properties are identical, and all properties differ from each other in their location - which is one of the most important determinants of their value. 

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So there cannot exist a centralized Walrasian auction setting for the trading of property assets, as there exists for trade in corporate stock. The absence of a market-based pricing mechanism determines the need for an expert appraisal/valuation of real estate/property.

Besides the mandatory educational grade, which can vary from Finance to Construction Technology, most, but not all, countries require appraisers to have the license for the practice. Usually, the real estate appraiser has the opportunity to reach 3 levels of certification: Appraisal Trainee, Licensed Appraiser, and Certified Appraiser. 

The second and third levels of license require no less than 2000 experience hours in 12 months and 2500 experience hours in no less than 24 months respectively. Appraisers are often known as "property valuers" or "land valuers"; in British English, they are "valuation surveyors". If the appraiser's opinion is based on market value, then it must also be based on the highest and best use of the real property. 

In the United States, mortgage valuations of improved residential properties are generally reported on a standardized form like the Uniform Residential Appraisal Report. Appraisals of more commercial properties (e.g., income-producing, raw land) are often reported in narrative format and completed by a Certified General Appraiser.