Valuer on time saves dime
As the English proverb “A stich in time saves nine” suggests, an honest, sensible & smart valuer can save your hard earned capital, or even save you from a fraud. How? Let’s see.
We, at Sahasrabuddhe valuers, work for various purposes. So let’s see different scenarios
1. Banks: We work for state bank of India loans, canara bank loans, bank of Maharashtra loans & various other banks.
First let us understand the relation of loan & valuer.
What RBI says: As per RBI, every Immovable or Movable property should be valued from a Government Approved Valuer. All the banks empanel valuers who are Government Approved or registered under Wealth Tax Act 34 AB. Of course this is not the only qualification but a must.
Why?: Since a valuer is a third party neutral agency which does not have any bias towards the price of the property. Their one & only aim is to provide a real-time value which will do justice to both the parties.
Value & the loan amount: The sum of money granted as loan depends on the Fair Market Value. Refer our earlier blog https://www.sahasrabuddhevaluers.com/value-which-is-fair/ for more on this.
Role of the valuer: Now imagine a defaulter. A person who didn’t pay the loan amount. The bank then takes the possession of the property, sells their property & recovers the money, in turn money of the honest tax paying citizens. If the valuer , initially, calculates the value of the property incorrectly or rather overestimates the value, the bank will never get the whole amount. This will force the bank to keep the property until it fetches the required value or sell it at a lower price than estimated at the start, on the basis of which the loan has been granted. In other words, suffers loss.
One more responsibility of a valuer is the authenticity of the property. We will post one more blog explaining it. But owing to this , consider that a valuer ignores a critical detail of the property which makes it illegal. This scenario is even worse than the overestimation of the price as this time the bank is left with NO PROPERTY at all to sell.
2. Personal valuations: We also try to find out a fair value for the flats.
Sell of property: If you are selling your property. We usually run to the nearest real estate agent & ask them to let us know if they receive any offer, constantly thinking if they are not trying to manipulate us.
Here comes the role of the valuer . When you appoint a valuer, whose only role is to find a neutral value, you can be sure that you won’t be deceived. Valuer does not have any interest in the sell of the property like the agent & on top of that they would give you a detailed analysis justifying the value they have quoted. A smart valuer is the key to an apt & realistic profit.
Purchase of property: The same dynamics plays while you purchase a property. The objective of a real estate agent or the potential seller is to make max profit. The role of the valuer in this case is to be your trusted friend. They can measure the potential of the property & the ongoing trends & thus provide you with the optimum price.
3. Industrial valuations & Valuations for property gain: All these are grouped under one heading since the reports are either considered or submitted to Income Tax Department.
These reports are to be done with utmost care. In such cases not only the clients are at stake even reputation of the valuer is at stake. One step in wrong direction can cause the valuer to lose their registration.
In these cases the role of the valuer is to provide with such a value that is fully justified or can be justified in any court of law. We, at Sahasrabuddhe Valuers, take extra measures to ensure that no client faces any difficulties in filing their ITR.
Role of Sahasrabuddhe valuers
Whether IT department, whether banks or whether personal valuations, we always proof our work with evidences of transactions, provide comments on the authenticity of the property & also giving the basis to arrive at those conclusions.
So you can hire us & save all your dimes.