13 June 2014
by V. Sanjugtha
http://www.focusmalaysia.my/Assets/Challenges-faced-by-valuers
As the heat on the property market continues to rise, valuers sometimes find themselves pitted against each other in a high-pressured game to provide the highest valuation so clients can get the desired loans..
There’s a lot of pressure from borrowers and bank credit officers to value high to obtain a higher loan [amount]. This is partly due to brokers or bullish sellers who tend to overestimate the value of the property.
That is why the role of valuers is important. We act as a ‘check and balance’ to verify the actual market value of the property,” says James Wong, managing director of VPC Alliance (Malaysia) Sdn Bhd.
Another challenge, according to Wong, is that there are syndicates that sometimes provide fictitious sales and purchase agreements (SPA) to banks, or the details in the SPA are those of a different property, often done to obtain a higher loan value.
Unfortunately, this has resulted in the more inexperienced valuers ending up valuing the wrong property, distorting the industry and giving rise to a host of legal issues.
The industry also faces the expectation to provide a lower valuation for properties on auction, says Siders Sittampalam, president of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia
- See more at: http://www.focusmalaysia.my/Assets/Challenges-faced-by-valuers#sthash.iJNJ68nn.dpuf