REVIEW & DEFICIENCY IN A VALUATION REPORT – A CASE

Here I am submitting a report entitled “REVIEW & DEFICIENCY IN A VALUATION REPORT – A CASE"

Most of the banks have their own proforma for Valuation Report especially for Land & Buildings.  The valuers are supposed to fill up the proforma correctly, accurately, without blank, additional information to be attached if any.

We came across a Valuation case where we were given the Valuation work by a leading Financial Institution.  The property is a land in a village Ramagudem near Medchal Mandal, Ranga Reddy District, (A.P).

We visited and inspected the property land, took all necessary details along with owner of the property.  The owner tried to influence us for giving property.  The owner tried to influence us for giving higher value and he gave an old valuation report to us made in March 2006 – 3 years ago.  He emphasized that other valuer has given the report 3 years back and hence we must give higher rate than him.  Well, we could not be influenced and did the Fair work.

When we studied the old valuation report we found large number of deficiencies.  Although many of these deficiencies appear minor except one major i.e., the land is agricultural land which is always sold @ per acre but the old valuer has valued per Sq.yard. perhaps to give higher value while there was no order from Govt. about conversion of agricultural land to industrial / residential.  Because of these deficiencies, we were subsequently informed that the valuer was called by banker, fired and removed from the bank panel.

Considering the above, we thought of sharing the deficiencies with fellow valuers for the benefit of all without mentioning name of valuer and same property details.  Necessary changes are made to avoid identification.

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