What is real estate appraisal?
What does real estate appraisal mean? This is a question that might come to many people's minds.
To understand the term, let's go back to the origin of the word and look at language dictionaries. The verb "to appraise" means to estimate the value, review the results, evaluate the progress made, and assess the value of those results.
But what if we add this word to "real estate" to form "real estate appraisal"? It is then known as the process of estimating the market value of a property at a specific time based on the conditions and status of the property itself. Thus, the goal of the real estate appraiser's report is to arrive at the fairest and most accurate price for the property.
How is the real estate appraisal process carried out?
A professional real estate appraiser relies on many visible and invisible factors. Among the visible factors, for example, but not limited to:
- The type of property, whether residential or commercial.
- The location of the property and the surrounding area.
- The size of the property and the number of rooms.
- The quality of the neighbourhood.
- The quality of internal and external finishes.
As for the invisible factors that play an important role in property appraisal, they include:
- The property's market demand.
- The scarcity or abundance of similar properties on the market.
- The property's function or intended use.
- The transferability of ownership.
- Other structural elements the property might need for usage or development and the associated costs.
The Profession of Real Estate Appraiser
Previously, this profession was an unregulated activity based on individual efforts without governing regulations or laws. However, our wise government, in its efforts to develop all fields, established the Saudi Authority for Accredited Valuers (Taqeem) under Royal Decree (M/43) dated 09-07-1433 H. This authority is an organized entity with independent legal personality and a non-profit organization operating under the supervision of the Ministry of Commerce and Investment. It aims to regulate and develop the appraisal profession, raise awareness of its principles, behaviours, and customs.
Thus, the profession of real estate appraiser emerged, requiring obtaining certification from the Appraisal Authority. This profession meets the needs of various sectors and property owners, such as banks, insurance companies, real estate firms, and state agencies involved in property expropriation. It assists them in making important economic decisions, such as buying, selling, acquiring, merging, dividing partnerships and inheritance, resolving disputes and compensations, and determining the feasibility of investments and replacements.
However, the determination of the "Jabal Tuwaiq Government" didn't stop there. In line with Vision 2030, which laid out a comprehensive and decisive strategy aimed at enabling and accelerating efficient and effective digital government transformation, and with an initiative from the Saudi Authority for Accredited Valuers, the (Qeem) electronic services system was established. This system aims to provide electronic linkage between the beneficiaries of appraisal services and licensed appraisal firms, allowing beneficiaries to obtain multiple offers to carry out the appraisal process, compare them, and follow all steps and manage the entire process through the electronic system.
Real Estate Appraisal Experts
Long experience in any profession is a genuine advantage and a valuable treasure that ensures the best outcomes. Among the best accredited real estate appraisal companies in the Kingdom of Saudi Arabia are:
- Rabiez Real Estate Appraisal Company: A leading company in real estate appraisal, keeping up with developments, has transitioned to an electronic system in all appraisal stages, using the latest real estate appraisal software in the Kingdom, according to international standards, and works professionally to ensure the quality and accuracy of the appraisals it issues.
- Miqyas Real Estate Appraisal Company: A company that has received fellowship status from the Saudi Authority for Accredited Valuers, has proven its efficiency and reliability in a short time, and has established a leading position as a real estate appraisal company, adopting an advanced working mechanism based on efficiency, quality, and professionalism.