Civil engineers and architects play a crucial role in finding opportunistic values in the built environment sector. Here’s what skills need to be acquired to become a professional valuer!
As per Chen, 2020, valuation refers to the quantitative process of assessing any asset’s credibility or worth. It demands a proper technique to determine the fair value. While measuring a company's worth or value tests the capital structure, an analyst is expected to consider potential profits, assets' market value, and management.
Why property valuations are important in the built environment?
Here’s why property valuations play a crucial role in the built environment sector:
3. For optimum selling and buying of property: To accurately determine the property’s worth when buying, selling, or renting, the valuation process becomes extremely crucial as over, and under-valuation can cause heavy losses.
4.For stamp duty: To analyze the stamp duty while transferring any property by an organization, individual, or company, valuation becomes a must to do step for finding the worth of the property.
5.For acquisition purpose: Valuation plays a significant role at the time of auctioning off any company or organization as it helps in deciding the actual worth of property.
Valuation profession as an opportunity:
The initial step in the valuation process is to understand the individual, company, or organization’s business interests to accurately perform the financial analysis calculations, such as growth percentage, P/E ratio, dividends, capital structure, equity, future earnings, etc.
Multiple methodologies and techniques, such as the asset approach, the income approach, or the market approach, are used to estimate the value and prepare the report.
Do you know that in the past 45 years, land and building valuation has been increased by 496%? This figure clearly implies the huge career progressions of engineers and architects into valuation roles.
A must-have skillset for a valuer:
Before jumping into the valuation profession, a valuer must obtain specific skills to excel in the field, which are:
About RICS SBE:
RICS School of Built Environment (RICS SBE), Amity University is an industry led academic institution which delivers specialized undergraduate and postgraduate programs to students ambitious to work in real estate, construction and infrastructure sector. It also aids as a hub for research and development of technical proficiency in built environment.