By Mashe Umaru Gwamna
An Estate Surveyor and Valuer, ESV. Auta Usurhyel said property valuation is very essential for economic development.
Speaking to Peoples Daily yesterday in Abuja, Usurhyel said Valuation has to do with the monetary estimation of the worth of a property which must be done by a professional Valuer.
He disclosed that Valuation of property can be used for different purposes such as Mortgage, Rating and Taxation, Compensation among others.
He explained that, ”For a business to get a loan from a bank, a collateral must be presented which is a property. The property will need to be valued by a Valuer to ascertain its worth in comparison to the amount needed by the borrower.
“After that, if it is commiserated and meets all other requirements of the bank then he will get the loan.”
According to him, “without valuation of your property, the bank will not give you a loan. Loans help businesses to grow. When businesses grow, it helps the economy to also develop.”
While giving more insight, on the importance of engaging an Estate Surveyor and Valuer in the valuation process, he said the estate professional is the only one that can ascribe value to a property.
He said valuation date of the valuation is essential. “It is the value as at the date of the valuation”.
The Estate Surveyor said “the date is important because anything can happen to the property at another date after the valuation was carried out which can increase the value or reduce it.”
He said the significant validity period of a valuation report is 2 years, adding that the report expires after 2 years and needs to be revalued.