Primary task of the Real Estate Appraisal:
Core mission estimate the property value and this value may be an incentive to appreciation for many reasons such as buying and selling, insurance or replacement parts or compensation for the loss of part of the property or the division of property or finance the construction or completion of the property or residential or commercial etc..
Resident and real estate deals with a number of parties such as real estate buyers or sellers or governmental institutions, companies or real estate brokers and the usual recourse to expert evaluation which should be its relationship with the only real estate is the valuation only, without any other relationship.
And provides expert currency in the form of Evaluation Report (Appraisal Report) and to present the report of the expert must make a thorough study to estimate the value of the property brought by a comprehensive geographic area and the economic situation.
1 - qualified real estate expert (expert evaluation):
And must be for the performance of work to be able to read and understand many of the texts and definitions and legal contracts and to have a degree of engineering sciences to determine the dimensions and physical properties of the property should also be familiar with the science building and construction and the expense of the construction costs and maintenance expenses and management of property and the estimated earn more revenue from property and real estate evaluation Vkhbayr abbreviation must be mastered and space sciences, engineering, economics, accounting, financial management and funding.
In the sense that the expert familiar with the basics of engineering sciences needed to calculate the dimensions and elements of facilities and qualities and to judge the safety and suitability to perform the work expected of them or not and the cost of building materials and construction, as well as the investment needed to build a Real Estate and governance on the income and expenses including depreciation and maintenance and taxes for these properties and the current value of the return on the use of property for a number of years to come, which means the need for knowledge of the expert a great deal of engineering science primarily in addition to some of the science of accounting and science of financial management must also be expert sciences, geography, economics and social assess the movement of people and investments at the state level to predict the supply and demand for property in the future to assess the impact on the value of the property in an area.
Based upon clear difficulty of degree one in the bachelor's level only gives expert enough for the exercise of his work.
Therefore necessary to follow the expert testimony in many scientific disciplines to cover the deficiencies in the original specialization (engineering for example) through the similar programs of continuing education programs at universities or specialized programs offered by institutions interested in the profession, such as some financial institutions and others.
2 - the expertise required for expert real estate:
Require expert assessment to the appropriate expertise to assess the real estate until it can judge the impact of society's various forces on the prices of property.
In many countries there is a job (an expert in training) and is found in many companies where the trainee to work as an assistant to an expert evaluation of several years can then apply for the exam to get on (the work permit as an expert), but sometimes Some universities provide training programs for a period of time qualifies the trainee to apply for the degree of expert assessment and the same thing done by some financial institutions for a number of its employees.
3 - the most important qualities of a real estate expert Neutrality:
It is most important to distinguish the work of expert neutrality, a personal commitment to the property and therefore must be held by an expert before you begin to accept the assessment process that demonstrates to the client any personal interest or another link may be of such property in dispute expert evaluation only.
Perhaps this is why the insistence of the Egyptian real estate finance law that should not be an expert evaluation of workers with the financial institution you are financing.
There is no doubt that the most important elements of the performance of the expert for his work are his previous experience and the multiplicity and diversity and interest Balilmam science for his work and its development and follow-up to the modern ones (continuing education) like any other profession, and perhaps this is why the records of mortgage experts the General Authority for Real Estate Financing renewed every three years to assess the performance of the expert, currency, and its ability to accommodate changing market conditions.
4 - for evaluation purposes:
Being a multi-purpose for which the assessment and multi-purpose multiple results, for example but not limited evaluation shall be conducted for several reasons, including:
Determining the price demanded by the seller.
Help the buyer to determine a fair price to buy.
Determine the value of a particular drug as part of the left.
To determine the rent as a percentage of property value.
Determine the relative value of the property to be exchanged between different parties.
Determine the property to be exchanged at the merger or liquidation or bankruptcy of companies.
Determine the value of mortgage financing, which is usually a percentage of the market value of the property.
Determine the property taxes when selling property.
Assessment of property at divorce and division of property between spouses.
Assessment of property in the course of multiple issues between the parties.
Determine the value of the work of future expansions.
Determine the value of insurance to be on the property.
Determine the cost of defects created as part of the process of litigation.
Assess the purpose of calculating property taxes.
Determine whether the current use of property is the best use of it or not.
Determine the most appropriate value for the free use of property.
Determine the loss of property as a result of fire, storms or earthquakes .... Etc..
The determination of the building to be demolished or not to re-use a better way .... Etc..
5 - permits to practice the profession of real estate expert:
The multiplicity of reasons for assessment of property (property evaluation) it is clear that the profession has been exercised by people long ago and perhaps one of the oldest modern states in the field of real estate finance United States of America and introduced mortgage system in the wake of the Great Depression in the early thirties and with the real estate finance organizations have emerged such as:
1 - National Organization for the Board of Real Property (National Association of Real Estate Board)
2 - Organization of residents of residential real estate (Society of Residentail Appraisal)
3 - American Institute of residents of the Real Property (American Institue of Real estate Appraisers)
And with the advent of mortgage finance had to be of the assessment to calculate the safe limits of funding and practiced many categories best known real estate brokers so that was the eighties (1980 - 1990), which has seen economic developments have had a lot of causing swings in real estate prices up and down and the collapse in many states including the mandate of the
California and north-eastern states and as a result of changes other economic accompanied by a swing collapsed and one of the largest financial institutions, real estate (Savings & Loans) of the reasons was the most important defects in the system of evaluation and Real Estate is to pay the economic community to insist on the need for residents of real estate on the certificate for the exercise of the profession.
I have started this period with the deregulation of financial institutions and increase the extent of securing the financial accounts and with increased competition among financial institutions and a financial surplus of many financial institutions and with a higher interest rate and the presence of long term mortgage previously granted low-interest, which is not strong enough to compete with loans short-term interest rates high and to win the competition slipped a lot of officials of financial institutions (for lack of experience or bad faith) into the trap of the financing of many projects is weak and the study which are not accompanied by a good study of the market situation.
Some of these projects can be considered high risk in the market conditions, good and, unfortunately, did not stand the conditions of economic and political in a row adventurers and had to change some tax laws to cancel tax incentive for real estate withdrew a large number of investors from the real estate market and with lower oil prices in that period collapsed real estate prices which has resulted in the collapse of many financial institutions which had been mired in real estate activity.
Perhaps one of the most important reasons for the collapse of some of these institutions is the poor performance of real estate valuation (as a result of neglect and the absence of controls for the scientific assessment work or intentional fraud, or both) in the assessment of real property which gives them loans.
Before the collapse of the institution savings and Loans of America (Saving & Loans) were not any U.S. state required to obtain a certificate of experience for the performance evaluation process real estate and the number of loans granted by residents contracted by financial institutions by themselves or through the evaluation of real estate brokers, but after the collapse of the market in the eighties and the collapse of the savings and loan institution (Savings & Loans) amended the federal government and the things it is necessary for residents on the estate a certificate assessment work.
In the wake of the collapse of the Bank (Savings & Loans) Congress passed legislation to reform and modernization of financial institutions:
Financial Instituions Reform, Recovery, and Enforcement Act (FIRREA)
In July 1991 Congress passed legislation that made all the work of the real estate assessment of the work of government by an expert assessment of their permit or leave the practice of the profession (Certified Appraisal) or (Licensed Appraisal) of state governments.
Resident and real estate has been divided into two types:
1 - holds a license (Licensed) and is an expert assessment of the work for less than $ 250,000 dollars.
2 - holds a work permit (Certified) and is an expert evaluation of the work of more than 250 000 dollars.
As Congress passed a resolution that, who wants financial institutions to non-compliance with this requirement to prove to the Government of the minimum that can not be used with expert carries leave the State two types and that the work less than a minimum and the financial institution to prove that these limits do not serve the safety financial institution.
And to preserve the integrity of U.S. financial institutions has been created institutions that are important are:
1 - Evaluation Board Specifications (ASB) (Appraisal Standards Board)
Which is in charge of formulating standard requirements for how the performance assessment work and how to prepare their own reports and the official version of the consolidated requirements for the practice of real estate valuation:
(Uniform Standards of Professional Appraisal Practice) (USPAP)
And the most important versions of this Council that concerns us here are: -
Performance requirements of the evaluation of real estate.
Review the requirements of Real Estate Evaluation.
Requirements to provide real estate consultancy.
Requirements of the collective assessment of real estate.
Requirements for performance evaluation of the business.
Requirements to prepare a report assessing the business.
2 - rehabilitation of the resident council estate (AQB) (Appraiser Quantification Board)
Which is responsible for determining the qualifications required for the exercise of any of the certificates of evaluation work
Congress enjoined the state donor to the testimony of real estate experts to observe the limits set by the two Houses.
And to demonstrate the importance of the evaluation work to list the American organizations interested in the work of mortgage experts and including (in addition to the above):
American Association of Certified Appraisers.
American Socity of Farm Managers & Rural Appraisers.
International Association of Assessing Officers.
International Right of Way Association.
National Association of Independent Fee Appraisers.
National Association of Master Appraisers.
Farm Cedit Council.
Mortgage Insurance Companies of America.
From the above illustrated the degree of ultimate concern that concern the American system (after the collapse of one of its financial institutions the main result of the poor performance of the evaluation process and the lack of adequate controls to them) in the selection of evaluation experts and the importance of rehabilitation of qualified line and the seriousness of the task before them, and emphasis on proper performance guarantee for the safety of financial institutions and the protection of public money and private sectors.
Magazine published an article to me a world of real estate in Dubai a month