Are you confident that your real estate valuation reflects its true value? How can you verify this? Many clients find it challenging to verify the accuracy of a real estate valuation, particularly given the numerous criteria and methods used to determine property value. Many customers find it difficult to verify the accuracy of a property valuation, especially with the multitude of criteria and methods used to determine property value.

In this article, we will help you understand how to know if the property valuation you have obtained is accurate and reliable. 

How do I know the value of a property? 

This is one of the most important questions that property owners, buyers, investors and others ask, as everyone wants to know the fair market value of a property. This can be achieved by obtaining an accurate property valuation from a licensed property valuer. Below, we explain how to value a property correctly: 

• Find an accredited real estate valuer: To ensure that you get the true value of the property, you must rely on a real estate valuer certified by the Saudi Authority of Accredited Valuers or a certified real estate valuation office that is licensed to obtain a certified real estate valuation report. 

• Gather information: This is the first stage, as it is the job of a real estate valuer to gather information about the property and all details related to it, such as its geographical location, area, type of property (residential or commercial), the age of the property, its structural condition, surrounding facilities and services,  mentioning any features or defects that may affect its value. One of the most important things that those requesting a real estate valuation service must do is to provide accurate information and state the purpose of the valuation, as this information helps the real estate valuer during the valuation process. 

• Inspection: This is the stage where the real estate valuer visits the property site to conduct a thorough field inspection, assessing its geographical location and proximity to services, as well as the structural condition of the building in terms of construction quality, finishes, and maintenance needs. The valuer also reviews legal documents such as title deeds and building permits to ensure that the property’s legal status is sound and free of any issues. This step ensures that the valuation is based on accurate data.

• Choosing the appropriate valuation method: There is more than one method of property valuation, depending on the type and condition of the property. Property valuation methods include: the income approach, the cost approach, and the comparative approach. The property valuer can choose one or more methods depending on the condition of the property. 

• Preparing the final report: After the valuation process, the licensed real estate valuer prepares a real estate valuation report, which is an official document issued by a specialised entity such as a real estate valuation office to determine the market price of the property at a specific time. This report contains important information such as property data, the purpose of the valuation, the method used in the valuation, and the influencing factors that contributed to this valuation, among other things. 

These are the basic process of the real estate valuation process, which is not just a random estimate but a systematic process based on reliable data and professional experience, starting with the selection of a certified real estate valuer, providing them with the correct information, and following the approved valuation process. 

How can you verify the accuracy of the valuation? 

To ensure that you receive a fair and accurate valuation, you must verify that the following information is included in the property valuation report: 

• Accreditation and licensing: You must cooperate with a real estate valuation office or a person who holds a real estate valuer licence accredited by the Saudi Authority of Accredited Valuers, as a report issued by an accredited entity guarantees credibility and quality. 

• Valuation methods: The valuation must be based on real estate valuation methods such as market comparison, cost, and income, as a professional report explains the method used and the reasons why this method is the most appropriate for the property being valued.

• Property description: The ideal valuation includes a detailed description of the property in terms of location, area, structural condition, and surrounding facilities, as these factors together determine the true value of the property.

• Comparison with market prices: The report must include a direct comparison with similar properties recently sold in the same area, to support the proposed value with realistic evidence from the market.

• Date of the report and its update: Pay attention to the date of the valuation, as property values change with the market. In the case of active or volatile markets, you may need to update the valuation periodically to ensure the accuracy of the decision.

The property valuation report should include the market value of the property. One of the most important benefits of understanding the valuation report and ensuring its accuracy is that it enables you to make informed decisions, invest with confidence, negotiate effectively, and mitigate risks. 

In conclusion

In that case, you should choose a reliable real estate valuation company, such as Aain Real Estate Valuation, which is one of the most important real estate valuation companies in the Kingdom of Saudi Arabia. It has a team of accredited and licensed professionals who are certified by the Saudi Authority and hold fellowship certificates, in addition to being members of the Royal Institute of Chartered Surveyors.

Finally, your understanding of the property valuation process and the criteria for verifying its accuracy provides a strong advantage in the world of investment, buying, and selling. Relying on a certified property valuer guarantees you an accurate report that reflects the true value of your property and gives you confidence in making important financial decisions.

If you are looking for the true value of your property, contact Aain now. We provide you with a certified report that helps you make the most appropriate decision.