Unlock the value of your commercial property
2023-08-07
Don’t underestimate the importance of an agricultural valuation
2023-09-26
Mr Malusi Mthuli
An interview with Mr Malusi Mthuli, Immediate Past President of the South African Institute of Valuers.
Written by: Mandisa Ndlovu
What is a property valuation?
A property valuation is a formal process that is undertaken by a qualified Valuer which culminates into a detailed report that expresses a professional opinion of market value, based on quantitative and qualitative aspects of the property and its surrounding market dynamics.
What qualifications does one need to have to become a Property Valuer? What training do they need to undergo?
For one to qualify as a property Valuer, one needs to have obtained a bachelor’s or post-graduate degree in either real estate, property valuation, or property studies. Thereafter, the individual must complete a minimum of 2 years of practical experience under the guidance of a Professional Valuer as required by the South African Council for the Property Valuers Profession (SACPVP). Depending on the strength of the portfolio of valuation evidence accumulated, the individual may then become eligible to write the board examination and qualify as a Professional Valuer. The Council may impose restrictions of practice.
Is it compulsory for Valuers to be registered with the South African Council for the Property Valuers Profession (SACPVP)? What is the role of SAIV?
To practice as a Property Valuer in South Africa, you must be registered with the South African Council for the Property Valuers Profession (SACPVP). The SAIV plays an important role in the property valuation industry and represents more than half of registered property Valuers in South Africa. SAIV’s main responsibilities are to improve the valuation profession by providing a platform to enforce industry standards and support its members' personal growth and development through continuous education and training.
What do Valuers look for when performing a valuation and how long does it take to complete a valuation?
When performing a valuation, Valuers look at the property’s characteristics such as the physical condition. Thereafter, they conduct a thorough market analysis on sales, rentals, vacancies, operating costs, and capitalisation rates as may be relevant to the property being valued. Valuers can do this by conducting market analyses and leveraging their expertise and research.
The duration of the valuation varies depending on the complexity of the property, the goal of the valuation, available data, etc. Turnaround times may range from a few days for simple single residential valuations to a few weeks for more complex income-generating properties. Portfolio valuations may go on for a few months.
Has the use of digital technologies, such as artificial intelligence (AI), impacted the way property valuations are conducted today?
Absolutely! Machine thinking (AI), the Internet of Things (bid data), blockchain, and 3D printing are some of the key technological advancements that have and are continuing to impact the valuations industry. When I started in valuations more than 20 years ago, we did valuations significantly differently from how we do them today. More disruption is expected in our space and broadly in the real estate industry.
