Real estate valuation, key to market stability; professionalization, its greatest challenge

The main goal of a real estate valuation is to determine, impartially and objectively, the value of a property. However, this activity also plays an important role for the stability of the real estateaccording to Marco Antonio Gómez, director of the Vaproy appraisal firm.

Since 2003, when the Law of Transparency and Promotion of Competition in Guaranteed Credit came into force, a new figure was integrated in the segment of financing for housing, called: unit of valuation.

These companies provide their services to the financial system and are regulated by the Federal Mortgage Society (SHF).

In this sense, the specialist pointed out that, through the elaboration of appraisalsthe institutional risk is also preserved, in order to objectively maintain the value of the guarantees that are taken to support the credits.

“Las valuation units we have robust financial structures to face any contingency, we provide this service to the Mexican financial system”, commented Marco Antonio Gómez during the Anáhuac Real Estate University Forum.

He also explained that, for a valuation company can operate with public or private financial institutions, it must offer professional liability insurance for up to 10 million dollars, in order to support possible problems, including overvaluation.

Professionalization and digitization

One of the factors that the appraisers’ union has promoted in the last 20 years to consolidate this activity is professionalization.

In this sense, the director of Vaproy highlighted that postgraduate studies are taught throughout the country. In addition, to work as an appraiser, not only is certain experience in the sector required, it is also necessary to have a professional license issued by the Ministry of Public Education (SEP).

“It is not just going out, visiting some properties and testing how much a property is worth, there is a whole established methodology and regulation. The knowledge behind it is essential”, he stated.

On the other hand, he mentioned that professionals in this sector are resilient, so they have the ability to adapt to new market demands, especially in the era of digitalization.

“It is important to provide this industry with technology to be able to speed up the preparation of appraisals, because times are something that banks particularly require to be less and less, given the speed with which they are placing credits,” concluded Gómez.