Beginner's guide to Property Valuation !

Before we start first congratulate yourself as you are willing to enter this field.??

Valuation is something which is known to few and very few understand the real importance of it. Indirectly it affects the economy of the country to the large extent. Just like some of the important jobs in this world, this is an very important job. Earlier very few were aware?but now we keep on hearing the term " Valuation "?frequently. There are various types of valuers. Ex. Land & Building ( Property) Valuer, Gold valuer, Plant and machinery Valuer, Securities and finances Valuer etc.? Again considering purpose there are different property valuers like, Valuers for wealth Tax or capital gain valuers,?SARFESI Valuers, Insolvency Valuers, Bank Valuers etc. This Article is more specific towards Bank Property valuations.

I am not going to explain the definition of valuation?as it is easily available in various books or you can get it on a click on Google.Many beginners or juniors have lot of questions about the future of this field. But unfortunately we don't?get it on google or any book.?So I have sorted some of the common questions and have tried to answer them to?help beginners about this stream.

FAQ'S

1. I am a Civil engineer.?I have done site job and now I am finding it difficult to continue the job and there are very less opportunities on site. Should I join Valuation field as one my friend said to try this field once?

Answer: Well, It's very unfortunate too see such situation of our civil stream.??But anyways I cannot change the fortune, So I would point out is "Kuch nai mil raha isliye karna, sahi nai hai". You should read about valuations, You should meet some industry veterans and you should Join this field if it really interests you. There is much difference in the site job and valuation field. Site job is about physical exertion but this field is all about mental exertion. You have to carry much pressure as you rise in this field. The growth of the field will happen only if those people join who are excited about the job. Rahi baat future ki toh this is ever growing field.?Though many things will depend on the laws the government will bring in future but I can bet that is this will ever growing ever emerging field and if you start liking your job then no one can stop your growth.? Yes one should definitely join this field.

2. What skills are required to get a job in this field?

Answer: Well one has to be multi-Tasker but to be specific the skills required are good command on English language, M.S. Excel , good communication skills, good at networking and one needs to be good at mathematics.?

3. What basic knowledge is required to enter this stream or to grow in this stream?How can I crack an interview to get a Job in this field?

Answer: If you want to enter this field you should know the geography of your market in detail. You should have at-least basic legal knowledge and knowledge about the property related acts of the respective state. One should?have complete hands on local bye laws. You should know about various measurement units of land and their conversions. To crack an Interview, Make a good Resume from Professional HR. Get all the real estate information like property prices, price trends and list of various A and B category developers and list of their projects in your area. Learn all the units of land measurements and their conversion. Read about various property acts and local bye-laws. With all the basic knowledge of above points, you can easily crack Interview.

4. Which books we can refer to get the basic knowledge about the property Valuation?

Answer: I prefer beginners to read about various real estate act and bye-laws in detail. Apart from this, books you can read are Valuation of Real properties and Town planning by Rangwala. There are hundred of books to read to further enhance your knowledge.

5. One of the most common question, What are the various memberships to become a chartered valuer and who is the government registered valuer? Who can do bank valuations and who can do capital gain or SARFESI Valuation??

Answer: Well Indian Banks association ( IBA which comprises of most of the banks as its members) was formed in 26th September 1946. IBA had authority to decide the crietria of valuers to do bank valuations. In early times , Valuation assignments were given to architects and civil engineers by banks directly and there was no such?policy or criteria to get Empanelled with Banks .Since there were no training or association,?the reports were far from realistic scenario. As the time passed, Forming the association of Valuer became the need of the hour. So finally Institute of Valuers (IOV) was formed in year 1968. Later IOV started conducting training's and giving its memberships. Later IBA decided to prefer valuers only who are members of such association. now there are many other associations like IIV, PVAI, CEV, Divya Jyoti, etc.All these associations offer a life time membership or a?yearly membership with more or less same fees.?

Banks started accepting valuation reports from valuers who are members of such associations. Such association can also grant you Chartered engineer or Chartered Valuer title. Once you become the member you can use Chartered valuer before your name.?

However, later to have a uniform policy and have a realistic asset value, RBI through its letter RBI No.2006-2007/224 DBOD.BP.BC No. 50 / 21.04.018/ 2006-07 dated 4th January 2007 decided to?have a uniform policy and moreover to consider the qualifications prescribed under Section 34AB (Rule 8A) of the Wealth Tax Act, 1957. Basically one can get registered as Valuer under this act to do Capital Gain Valuations and SARFESI Valuation only. However after the guidelines of RBI to prefer these Valuers for bank valuation, Bank started empanellment of valuers having registration under wealth tax act.

In 2016, Insolvency bankruptcy board of India was formed to resolve claims of Insolvent companies. To do the Valuations the board introduced a registration of?Valuers under Company act 2013, Rules may be called the Companies (Registered Valuers and Valuation)?Rules, 2017.The valuer registered under this act are eligible to do the Valuation of assets of Insolvency Company.?

However unlike registration of Valuer under Wealth Tax Act,?This registration requires 50 hours training and need to pass valuer examination.?50 hours training are given by various RVOs. Hence the valuers registered under companies act are more qualified as compared to valuers registered under any other act.Now since these valuers are more qualified valuers, Various banks started Empanelment of the those valuers having registration under companies act 2013 instead of Wealth tax act to do bank valuations.??

Valuer registered in under any act explained above is government registered valuer. But note that IBBI registered valuer cannot do Capital gain valuations and Wealth Tax registered valuer cannot do Insolvency valuations.?? A valuer can be registered in both acts at the same time.? For bank valuations,?one must be registered under any of above act or it depends on the bank about their criteria of Empanelment.??

Recently to bring more uniformity, MCA has introduced Valuers bill in the parliament. The fate of Valuers will be decided once the bill is passed and implemented.?Valuers bill is a separate topic and it will be covered in other article.

6. Can a Diploma holder do the Valuation?

Answer: For now, yes diploma holders are allowed to do the Valuation and many Banks or Housing finance companies hire diploma holders at small positions .However in coming time, the diploma holders will not be allowed to do the Valuation. So it is highly recommended to get the degree as soon as possible.??

7. Can we do Job in Valuation and at the same time get registered as valuer under IBBI?

Answer: No, If you want to become registered valuer then you cannot do the Job in any company. Certificate of practice is required to practice as individual valuer and such Certificate of practice is granted only to unemployed people.

8. Can girls join this field?

Answer: Yes, Why not. I have seen so many girls who have joined this field and are more successful than their male counterparts. Yes agree that there are some restrictions in various roles but the girls are perfect fit for Making reports, Data Analysis, Market Intelligence, Real estate news articles etc.

There are many other frequent questions asked but I have selected only few basic imp questions to answer in this article. I hope that you might have got at-least some clarity by reading this article. Please share this article so that it reaches to all the ones who want to start the career in this field and are hesitating to join or have just started. If you have any further queries you can DM me. We are thinking to start a small valuation crash course in coming time to help professionals to enhance their knowledge.

Please follow: https://lnkd.in/gCpsAQk for more such articles and details about the course.

-Red Hawk Valuers & advisors Pvt. Ltd.