The responsibility of land valuations is not only a complex one but also ethically important and multidimensional. Land valuations actually determine the actual saleable fair market price of a piece of land in the open market. The valuations of a piece of land has various implications since the valuer is entrusted with the task of assessing the value of the most precious resource that mother nature has blessed us with i.e. land and that too with quality.
To ethically and truthfully discharge their duties, land valuations experts require adhering to certain recommended best practice processes, such as:
1) Hold relevant valuers qualifications and exhibit proficiency
2) Compliance with the defined and accepted terms of engagement
3) Utilize inspection notes
4) Documenting and linking the comparable records with valuations
5) Quality reporting and adhering to vigorous quality assurance measures
6) Disclose the approach to quantify valuations.
The valuers should be capable of demonstrating the reason why they are best suited to conduct the land valuations for the clients. Their relevant qualifications and expertise should be proved and well exhibited whilst they should also be able to display appropriate command over the dynamics of the property markets in the concerned geography. Not holding the concerned geographical market expertise can significantly dampen the services provided by the valuers since this may give a way to claims related risk bearing for the clients and the servicing valuer firm itself.
To conduct unmatched land valuations and to earn the respect of their clients, valuers must disclose terms of service engagement prepared in compliance with the global valuers standards. The valuers should also follow a succinct and well structured framework for preparing valuations report. There should be utmost commitment to achieve quality assurance standards. Proper valuation standards only will lead to fair decisions for the betterment of clients and lenders.
It is also crucially needed that an audit route of information be followed all through the way of a transaction with appropriate provisions to include explanatory statements wherever required i.e. building a checklist. Well drafted comparison information of the identical property deals in the vicinity of the concerned property must also be provided so as to further authenticate the land valuations result. The land valuations experts should also clearly explain what method of valuation calculation have they used and for what reason.
These are some of the best practices measures that registered valuers can follow to cater the expectations of their clients well and thereby also making the transaction cycle running smooth for lenders and their own firms too.