The Professional Property Valuer

A professional property valuer is a person that has an accumulated knowledge of the building industry, understanding financial investment criteria and economical markets. A professional property valuer can gather, analyse and deduce reliable information for rational interpretation. The key function of a valuer is to explain and present complex assumptions and derivatives in an understandable matter. The data statistics should be transparent and all assumptions needs to comply with logic and motivational reasoning i.e. “apply your mind” as a wise architect once informed me.
No value is predeterminable, only as the concluded assumptions and market related information are applied does the bottom-line or final valuation appear. A professional property valuer cannot form a personal opinion separate from the data and therefore can only express the opinion as derived from the market. The result is a valuation that is only as credible as the data and assumptions on which it is based.

However, a professional property valuer is more than a market value interpreter and can assist the property owner with proper insurance advice preventing Average (under payment of the claim, due to the building being under insured and vice versa) when a claim is processed. A professional property valuer can conduct property market research as well as financial analysis and can act as an adviser to guide investors on the risk margins and exposure of their investment. The same way your doctor, architect, engineer, attorney or financial adviser applies their knowledge to specialist domains, so the property specialist provides sound property advice. A professional property valuer can assist with matters which is legal in nature i.e. estate late, divorce settlements, transfer of ownership and any form of consultation.

A professional property valuer should be allowed to work independent and never influenced by any party. Once the final valuation report has been delivered, only then can annexes and amendments can be added for the intended purposes, though the original conclusions remain.

Note: the author is aware of difference between neoclassic and complexity views, bounded rationality and recent publications on a blended approach to decision making i.e. a blend of emotion and reason. This article leans more toward the classic view, though the author subscribes to heuristic decision making in volatile markets.