UGANDA, Kampala | Real Muloodi News | Moses Batanda Mubiru, a registered valuation surveyor, sheds light on the critical yet often misunderstood role of valuation surveyors in the determination of land and property market values. This clarification comes amid misconceptions and confusion surrounding the functions of these professionals within the real estate sector.
Mubiru emphasises that the reliance on well-assessed land and property market values has been a historical practice, essential for fair property transactions and conflict avoidance, ultimately contributing to global development.
The valuation surveyor’s role, however, has frequently faced misconceptions, even from fellow real estate market players.
Terms like ‘evaluators,’ ‘land valuers,’ ‘property evaluators,’ and ‘surveyors’ are often used interchangeably, highlighting the need for a deeper understanding of their specific functions.
“I have constantly encountered an intriguing question, ‘what do you valuers do exactly?’. This is an interesting question, especially when it comes from one who is expected to be a direct user of valuation services,” says Mubiru.
Valuation surveyors play a pivotal role in various scenarios within the land and property market, with their opinions sought for purposes such as sale, purchase, secured lending, book purposes, rental assessment, property rates assessment, compensation, insurance, development appraisals, premium and ground rent, and stamp duty, among others.
Mubiru highlights the importance of treating each valuation purpose on its merit. For mortgage valuations, the focus is on whether the property represents sufficient security for the loan and its potential resale value in case of default.
On the other hand, for sale and purchase, the opinion reflects extensive marketing and patience from the seller to secure the best deal.
Contrary to the misconception that a single value fits all scenarios, Mubiru emphasises that property values must be aligned with the specific purpose for which the valuation was sanctioned.
The valuer’s role is to position the land or property in the prevailing market conditions, returning what the market provides under normal circumstances.
“Worth originates from an individual purchaser’s perspective. According to the red book; worth is perceived as the value of property to a particular owner, investor, or class of investors for identified investment or operational objectives,” explains Mubiru.
Valuation surveyors often find themselves in the midst of conflicting interests, with various market participants, such as bankers and borrowers, seeking to achieve their objectives.
The valuer’s interpretation of the market can lead to frustrations if it falls short of the participants’ targets.
“In an open property market, prices may change day and night. A valuer is expected to give a regulating opinion; sieving through the buyers’ market, sellers’ market, and sometimes the special participants for a particular property or location,” adds Mubiru.
The complexities within the valuation process highlight the need for a nuanced understanding of the valuation surveyor’s role.
Mubiru’s insights provide clarity on their responsibilities and the importance of aligning property values with the specific purposes for which valuations are conducted.
As misconceptions persist, Mubiru underscores the significance of valuers in maintaining the integrity and fairness of land and property transactions.
READ MORE LIKE THIS:
Expanding Your Property Management Company to Multiple Locations