Bringing the valuer home

By Neville Berkowitz

The valuation profession is relatively unknown to the average home owner and buyer.

While undertaking 14 months of research with the public, as well as within the property industry, to create a low commission estate agency process, property veteran Neville Berkowitz was astounded at the lack of knowledge among the general public of the role and importance of a registered professional valuer in the property industry.

”The valuation profession has not done a good job of promoting itself as an invaluable member of the property industry. The status of registered professional valuers needs to be meaningfully improved for the man in the street to appreciate fully their proven skills, as well as to attract young people into the profession,” says Berkowitz.

Berkowitz has created a process which relies heavily on using an unbiased and independent registered professional valuer upfront in the place of the Estate Agent to produce a comprehensive valuation report of a home for sale. This report arrives at a valuation of the home based on a comparative market analysis. The advantages of obtaining an unbiased and independent valuation report from a registered professional valuer are pointed out to sellers.

Sellers have an accurate assessment of the current market value of their homes from a party unaffected by the potential sale of their properties. This valuer has no vested interest in valuation amount arrived at or whether or not the seller gives a mandate any estate agent. Sellers can decide whether or not to put their homes on the market at or near the valuation amount without any undue pressure and/or promises made by any over-zealous estate agent.

In this process, financially pre-qualified and vetted buyers have access to the valuation reports of the homes they are interested in viewing and potentially buying. Buyers are fully armed with all the facts and see the same valuation report as the seller, bringing realistic facts into play between the parties.

Sellers have an important negotiating tool when selling their properties and the days of asking unrealistic prices encouraged by estate agents and spending months in negotiations, wearing down the seller, are over. “Here is the valuation report, this is my asking price, request whatever further information you require and then submit your confidential bid for my home to my attorney who will advise me on your bid and its relevant terms and conditions”, says the confident seller.

The financially pre-qualified buyers are also at an advantage in having access to the valuation report because they can inspect the property armed with the valuation report and see the property through the eyes of an unbiased and independent expert pointing out any anomalies and issues that may require attention. They will be aware the mortgage financier will also see a copy of the valuation report and that the lender is likely to accept this valuation when the buyer applies for a loan.

Buyers will be made aware of the value-to-loan ratio likely to be imposed by the lender based on their financial information and they can correctly arrange their finances accordingly, and will know they are getting value for money for the home they are purchasing as evidenced by the valuation report.

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Neville Berkowitz was an early pioneer of property economics in South Africa, writing and publishing “The Property Economist” from 1980- 1995.

In 1981 he was appointed to the Building Advisory Committee reporting to The Office of The Prime Minister of South Africa. He was an Institutional Property Advisor and Property Developer.

Neville Berkowitz Global Property Economists was represented in 17 countries on 5 continents.

After semi-retiring in 2009 he has focused his energies on developing job creation in South Africa, publishing, internet based development , authored two books and compiled “5000 Years of Wisdom” and acts as special adviser to HomeBid and Editor at Large to HomeTimes, a weekly newsletter that aims to inform and guide homeowners.