Economic analysts and employees in the real estate sector expected that an end will put the randomness of the real estate valuation with the beginning of the next year, and that with putting the resolution of the Saudi Authority for Accredited Valuers (Taqeem) into force, which states the necessity of the real estate Valuers who practice the profession to get its temporary membership no later than the end of 2015, otherwise they wouldn’t be entitled to practice the profession for any reason, and their valuations wouldn’t be adopted by the official authorities unless they get the Authority temporary membership.
The Saudi Authority for Accredited Valuers (Taqeem) considered the end of this year 2015 as the final date for practicing the real estate valuation profession without getting its temporary membership, and the Authority mentioned that this goes hand in hand with the ministerial resolution dated 3/6/1435 AH.
It stated in the words of its Secretary General Mr. Issam Al Mubarak, that the Authority continues granting the temporary membership to those who meet all the conditions and requirements stressing that these people have the right to practice the real estate valuation services in the kingdom, and all the services related to courts to prove the rights particularly in seizure, implementation, inheritance distribution, possession and merging procedures, as well as the private sector valuation services including banks and real estate financing companies in coordination with Ministry of Justice, and Saudi Arabian Monetary Agency (SAMA).
The Ministry of Commerce and Industry expected that the real estate valuation licenses will be granted to about 80 facilities before the end of this year. The specialized commission of the real estate registry has issued 35 licenses for practicing the real estate valuation until now.
The valuation profession
About the valuation profession, an economic analyst Dr. Salem Bajaja declares: “The valuation profession in general and the real estate valuation in particular need bases, principles and standards that should be learned by the Valuer, in addition to a minimum of practical experience to get acquainted with his rights and obligations, in order to boost confidence, achieving justice in transactions in the real estate market and the consolidation of security and stability, especially when we know that the business of real estate market is estimated in billions.”
Bajaja considers the real estate valuation one of the important tools in the success of the real estate system in the kingdom, indicating that this sector suffered in the last decades from the randomness and the non-qualified individuals’ assumptions, controlled millions of Riyals in the sector, through the valuation processes, much of which was wrong and not accurate. So as a result a lot of people lost their savings and property.
He adds; “We shall know that the real estate valuation is very important for the sector, and its tools and developments must keep up with the recent developments in the sector and knowledge, and to keep pace with real estate booms witnessed by the markets in Saudi Arabia, due to the seriousness and importance in maintaining the citizens’ money and official bodies including banks and others, by accurate and sound valuation based on science and knowledge.”
A real estate specialist Abdulrahman Al Mouhaidib reveals the fatal mistakes experienced in the real estate valuation in the past saying; “Large number of real estate specialists worked in this profession. Most of them were elderly people, those who got acquainted with the market course and know its secrets and mysteries, and got benefits from the years of experience in the real estate valuation in a right way and close to reality, but the valuation which was made by some of them wasn’t accurate as requested. This means that injustice was befallen on some of the beneficiaries from the real estate valuation in the past, whether they were citizens or financing bodies which they used to lend people in order to build their homes.”
He proceeds saying; “We don’t deny the fact that the elderly people have good knowledge in this sector, and they have great experience, but some of their mistakes in valuation were serious. That what the Saudi Authority for Accredited Valuers (Taqeem) seeks to get rid of by its programs and decisions, through training some of the specialists in the real estate valuation, in order to work according to accurate scientific bases and principles to decrease the mistakes to maximum degree.”
The academic experience
A real estate specialist Majid Al Shalhoub believes that the real estate valuation is one of the forefront reasons which limit the new investments from entering the Saudi sector. He says: “The investors want to keep their money and savings, and that is not available in the mechanism which was followed in the past, with the existence of individuals practicing this important profession, with personal assumptions without any knowledge or academic experience.”
Al Shalhoub proceeds saying: “Putting an end to the randomness of the real estate valuation in the Saudi market arrived too late. Here we should realize that the justice and trust in the commercial transactions in general and in the real estate market in particular are considered one of the most important main bases which help in the real estate market development. Also they create safe and stable status.”
He adds: “I am sorry to say that what was witnessed by the real estate market in Saudi Arabia from random problems and personal assumptions, which are not based on foundations or practical experience that have origin in the real estate valuation, causing several dilemmas we can do without it, if we have specialists in the real estate valuation.”