ST Forum : Don't rely on indicative valuations

24 JAN 2011,
Don't rely on indicative valuations

VALUATION is indeed based on detailed research and analysis and not on sentiments (Ms Yvonne Lee-Lek Siew Ling, 'Same bank, same property but... Valuations differed by $200,000.'; last Tuesday).

Indicative valuations provided via agents or banks (if obtained from valuers) are rough estimates as they are given without field inspections, in-depth analysis and data.

They should not be relied upon when making decisions on property investment or divestment.

We caution against relying on such indications, and urge buyers or sellers to obtain proper valuation reports from licensed appraisers if they need to ascertain the market values of their properties.

They will thus avoid getting a wide $200,000 difference in estimate of the same property given by agents or banks.

Desktop valuations are not a subscribed practice and should not be treated as proper valuations.

Ms Lee cited her experience about receiving assurances from agents and bank officers that they could offer valuations to match the asking price.

We seek Ms Lee's assistance to provide us with more details to help us address the problem.

Evelyn Chang (Ms)
Executive Director
Singapore Institute of Surveyors and Valuers