The Registered Valuer

There is a constant need to determine the value of the property for the purpose of financing, reporting to shareholders, cost accounting, mergers or takeovers… rent reviews, rates assessment, expropriations, arbitration and litigation. One of the frequent applications of the valuer’s skill is to determine values for the purpose of purchase or sale.

The valuation that professional valuers complete is undertaken by an objective person who is legally recognised by The Property Valuers Profession Act of 2000 and who, by training and experience, has passed the competency required by the International Valuation Standards and Municipal Rating Standards to determine the market value of a property.

The end-user of a valuation report that a professional valuer completes benefits from making an impartial informed decision on property value that is sound from a physical (structure and features), legal (real right), and economical (benefit). This is founded on sound research and a high degree of technical knowledge on matters relating to a property and its surrounding market. In addition, only a professional valuation is defendable in court and usable for funding purposes as specified in the Act. Other property professionals may also provide an opinion of value; however, this is merely an opinion.

The valuer does not invent value but interprets market forces which determine the value. Hence, the valuer requires a combination of several professional qualities and capabilities and needs a thorough knowledge and understanding of the interacting influences which create, maintain or diminish the value of property or rights thereto.

Valuers are qualified to undertake valuations in all classes of properties, including commercial and industrial properties, all types of residential properties, and agricultural and special-use properties.

However, most valuers tend to specialise and do not undertake the full range of valuations. It is therefore vitally important for clients to select and appoint a registered valuer with the relevant practical experience and knowledge required to undertake the specific valuation.

The valuer’s requirements regarding training, education and qualification examinations and affiliations

Property valuers are required to obtain a three-year tertiary national diploma, a four-year degree (NQF level 9 – like Architects and Engineers), or a master’s degree in real estate, property valuation, or property studies before registering to become property valuers to ensure that they have the necessary theoretical knowledge. This is followed by intense practical training and exposure to various property types before they are eligible to write an exam qualifying them to become professionals.

Furthermore, valuers are required to undertake various activities for their continuous professional development in order to maintain their registration. Therefore, no one can conduct valuations without first meeting these prerequisites.

Additionally, all registered valuers in South Africa are governed by the Property Valuers Profession, 2000 (Act of 47 of 2000), through a juristic body known as the South African Council for the Property Valuers Profession (SACPVP) that is responsible for the registration and regulation of the profession.

The SAIV is the largest voluntary association representing more than half of registered Property Valuers in South Africa, established in 1909, to which any suitably qualified person can belong. Members comprise valuers, but also have affiliate members, those who are registered as professionals within Councils forming part of the Council for the Built Environment who have a particular interest in and/or connection with the property valuation profession.

Buying any property is often a big life or investment decision. Credible advice is necessary for one to make the best call. The cost of undertaking a professional valuation upfront is a fraction of the potential loss in making an uninformed decision.

A valuation is typically valid for a year, and banks will consider an independently executed valuation.