Valuations

A real estate asset valuation, such as a residential apartment, considers typical characteristics like size, layout, specification, condition, and views. Depending on the property type, the characteristics will differ. However, generally speaking, a real estate valuation typically excludes furniture, plant & machinery.

A bank typically requests an independent third party to conduct a valuation for real estate assets to provide expert and impartial advice. This is a form of risk analysis for banks to check if the amount to be borrowed aligns with the banks’ policies and risk appetite. The timeline for the valuation/appraisal process varies by property type and bank, but generally, the expected timeline for a typical residential property is around 3 working days. The valuation firm will contact you to arrange the inspection, and the report will be completed and sent to the bank directly.

It is important to check if the valuation company complies with certain standards. Asking questions before can avoid headaches and wasted time. Check if the company is RICS Registered and has any RICS members within the company. Also, is the company compliant with the local jurisdiction standards? Suppose you feel that the property needs to be valued correctly. In that case, it's worth researching the local market, finding evidence from quality data platforms and speaking to reputable agents in that community. If you still feel the same way, you can query the valuation by emailing the lender (bank), highlighting the reasons. In this scenario, it is important to separate the heart from the head, as purchasing or selling property can be sentimental.

Data availability is key to providing a high-quality valuation service. Globally there are different data platforms and sources. Typically a good valuation firm will use various data sources, including land department data, internal/external databases and speaking to reputable brokers. You can enquire with the surveyor, as different companies may use different sources of evidence.

You may be asked if all the property can be inspected and if there are any modifications, the occupancy status, property type etc. A good rule for health reasons is to open all the doors, so the surveyor does not have to touch surfaces. You should have already provided the relevant documents.