Valuers: A Lesser-Known Yet Highly Lucrative Career Path

In the complex ecosystem of real estate transactions, most people focus solely on price and value, often overlooking the “key players” who work behind the scenes.

One such profession is the property valuer—an expert in assessing real estate value and ensuring fairness in transactions. Ever wondered who can explain the significant price differences between two seemingly identical units in the same neighborhood? The answer lies with the valuer.

The Hidden Wealth of Property Valuers

According to official statistics, there were 1,349 registered valuers in the country. However, by 2021, only 1,008 were actively practicing. This scarcity of professionals creates less competition and more opportunities.

Many parents push their children toward careers like medicine, law, or engineering, unaware that being a valuer is one of the most promising and profitable professions.

One experienced valuer shared a story about a former employer who originally wanted to study law or medicine but ended up in property management. Later, during a reunion, the employer realized they were earning more than their lawyer and doctor friends!

High Earnings Potential

Valuation can be a highly lucrative profession. For example, at the peak of business in 2012, a valuation firm could receive 600 to 1,000 cases in a single month. With valuation reports costing between RM1,000 and RM2,000, an average fee of RM1,500 per report could generate over RM1 million in monthly revenue.

This is just one revenue stream. Valuers also provide market research services to developers, with reports costing tens of thousands of ringgit. Anytime a property’s current market value is needed, a valuer is required. Additionally, valuers perform property market analysis and research, which adds to their revenue.

Diverse Career Paths for Valuers

The career opportunities for valuers are extensive. Besides working for property consultancy firms, valuers can also find roles in government departments like the Valuation and Property Services Department, property management divisions of developers, or the real estate investment departments of large corporations.

However, becoming a certified valuer is no easy task. After completing a three-year degree in property management, candidates must undergo a two-year internship and then pass a challenging exam to become a registered valuer. Many aspiring valuers give up due to the rigorous certification process, which tests experience rather than textbook knowledge. Some candidates take the exam multiple times before passing.

6 Situations Where a Valuer is Needed

Valuers play a crucial role in many scenarios, not just during real estate transactions. Here are six common situations where their expertise is required:

Bank Loans: In most real estate transactions involving bank loans, a valuation report from a registered valuer is mandatory. Since loan amounts are based on the property’s value, banks rely on valuers for an unbiased assessment.

Buying and Selling Property: While a valuation report is not always required if there’s no bank loan, it’s often essential in certain transactions, such as land sales, to provide credibility and make the property more sellable.

Land Acquisition: When the government acquires land, it must compensate the owner fairly. A valuer is hired to determine the land’s market value.

Property Disputes: In court cases involving property disputes, both parties typically hire valuers to estimate the market value of the property in question.

Real Estate Investment Trusts (REITs): REITs are required to undergo regular property valuations. Depending on the trust, valuations may be conducted annually, semi-annually, or quarterly. Valuation reports are also necessary for audits, typically every two years.

Divorce Settlements: In divorce cases involving property division, courts need to know the value of assets to make fair decisions, often requiring a valuation report.

Valuation reports cannot be reused for different purposes. For example, a report prepared for a bank loan cannot be used elsewhere because each institution has its own specifications. The report date is also crucial, as market conditions can change quickly.

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3 Common Property Valuation Methods

Valuers use different methods to determine property values, depending on the type of property. The three most common valuation methods are:

Comparison Method: Widely used for residential properties, this method compares similar properties within the same community. However, since no two properties are identical, valuers must consider as many factors as possible.

Profit Method: This method calculates a property’s value based on the income it generates, making it ideal for commercial properties. Subtypes include the Investment Method, which capitalizes on net income after deducting expenses, and the Residual Method, typically used for undeveloped land after obtaining development permits.

Costing Method: This method is used when the first two methods are unsuitable, particularly for properties like hospitals, schools, and religious buildings, where there are no comparable sales records. It calculates value based on construction costs.

The Challenges Valuers Face

While valuation is a lucrative career, it comes with its challenges. One of the most pressing issues is the lack of transparency in real estate transactions. Unlike countries like Singapore, where property transaction data is readily available online, Malaysia lacks such a mechanism. Only registered valuers can purchase transaction data from authorities, and even then, access to the latest information depends on how quickly the authorities update their records. Once valuers have the data, they face the additional challenge of interpreting it accurately to provide precise valuations.

Conclusion: A Career Worth Considering

Despite being a lesser-known profession, property valuation offers both job security and high income potential. As a crucial part of the real estate market, valuers ensure fair transactions and play a significant role in property investments, development, and legal disputes. For those looking for a rewarding career with fewer competitors and plenty of opportunities, becoming a valuer might just be the path to success.

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