KNOWLEDGE AND ABILITY OF VALUER ON THE PROPERTY VALUATION PROCESS

Abstract

Property valuation is one of the most important professions because it involves all parts of economy of public, private and governmental sector especially financial institutions and real estate businesses. The process of property valuation is to determine the value of property by the valuers according to the property valuation process and standard as well as professional ethics in line with universal principles and guidelines of property valuation. Therefore, the property valuers play an important role and are greatly necessary for the real estate business. The purpose of this research was to understand the property valuation methods, workloads and skills of the property valuers towards the property valuation process which, as a result, would lead to recommendation and guidelines of property valuation curriculum development as well as other related curriculums to meet the requirement of the private sectors.

This results, gaining from interviewing 10 companies involving in property valuation and gathering questionnaires from 315 valuers found that the property valuation profession was a profession that required knowledge and specialized skills in evaluating property price involving seven processes of property valuation which were significant factors of analysis to indicate valuers’ knowledge and skills in performing property valuation. The results showed that the property valuers in each position required the same knowledge and skills in their performance. The differences of each position were expertise and ability in performing property valuation, which, according to the researcher, could be gained from “working experience” in the property valuation field. The property valuers with one or one-two years experience were those who had just graduated from both the property valuation program and the real estate program. The property valuation code of conduct prescribed that the valuers had to have essential education qualification, knowledge, expertise, and working experience required for property valuation. The results found that the valuers with working experience less than one year or one-two years were not able to completely perform all the seven process as mentioned in the property valuation standard and code of conduct. The valuers with more than 10 years working experience, mostly in the positions of managements, manager, and directors, had duties to check the property valuation report, plan the work and organization administration, etc.; therefore, they had no chance to perform their duties according to property valuation process. However, the property valuation standard and code of conduct stipulated that the appraisers were necessary to constantly study and participate in professional training to improve and accumulate professional knowledge and related fields as well as always improve quality of services in according to the standard.

Recommendation: companies should hold trainings or support the appraisers to attend their professional training to develop their knowledge and promote the ability of property valuation performance, especially those related to the fifth process on property valuation. Educational institutes provided property valuation or real estate business course should focus more on operational practice so the students could apply the theories in all seven property valuation processes. Short-term training courses on property valuation held by Thai Valuers Association, The Valuers Association of Thailand or other public sectors should have standard to divide the valuers’ experience to meet with individual valuer.