17 CONTENTS OF A REAL PROPERTY VALUATION REPORT

In summation, the term real estate refers to the totality of all the things that make up the whole world – the air, sea and ocean, land and buildings, sky, forests, rocks and mountains, infrastructural facilities, plants, machineries, equipment, tools, furniture and fixtures, mineral resources beneath and above the earth surface, etc.–including mankind (Gen 1 vs. 26-28).

Property Valuation in real estate practice terminology refers to the process or exercise of estimating or assessing the monetary worth or value of a particular interest in land and/or landed property for a specific purpose, in a particular location and within a stipulated time frame.

There are so many reasons and purposes why a real property valuation exercise is embarked upon amongst which are;

·         Sale or Purchase

·         Probate

·         Auction

·         Compensation

·         Rating and/or Taxation

·         Balance sheet

·         Insurance

·         Mortgage

·         Going concern

·         Loan advancement

Before a real estate valuation exercise can be undertaken, the professional Estate Surveyor and Valuer appointed for the exercise owes it a duty to establish the reason or purpose for which the property valuation exercise is needed as it is by this he/she will be able to apply the required basis of value and necessary valuation methods in arriving at his/her opinion of value.

The conventional five (5) different valuation methods that can be adopted by a professional Estate Surveyor and Valuer when carrying out a real property valuation report exercise are;

·         Comparative/Comparison Method

·         Residual Method

·         Cost/Contractor’s Method

·         Investment Method

·         Profits/Accounts Method

One or more of these five (5) conventional valuationmethods can be adopted by the Estate Surveyor and Valuerwho is undertaking a property valuation report exercise in arriving at the best opinion of or assessed value of the property based on his/her discretion, experience and skills.

CONTENTS OF A VALUATION REPORT

A real estate valuation report or certificate is a professional and legal document which explains the rigorous and analytical processes undertaken in carrying out a property valuation exercise and which presents well detailed and meaning information used in the analysis that led to the opinion of value been arrived at by the professional Estate Surveyor and Valuer.

The following items/elements must be found in a real estate valuation exercise report before it can tenable as well as regarded as a comprehensive professional document written by a competent and professional Estate Surveyor and Valuer who is a member of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) and alsoduly registered by the Estate Surveyors and Valuers Registration Board of Nigerian (ESVARBON) to carry out professional real estate surveying and valuation practice in Nigeria.

1.      Cover letter/Information

2.      Location of real estate to be valued

3.      Neighbourhood Characteristics

4.      Site Description

5.      Construction Details of Buildings

6.      Accommodation Details

7.      Utilities and services provided on the real property been valued

8.      General condition of the valued real property

9.      Tenure

10.  Date of Inspection/Valuation

11.  Purpose of Valuation

12.  Assumptions

13.  Basis of Valuation

14.  Method of Valuation

15.  Opinion of Value

16.  Caveat/Limiting Conditions

17.  Official stampand signature of the professional Estate Surveyor and Valuer

The elements/items identified above are what make up a detailed and comprehensive real propertyvaluation report.

A professional real estate/property valuation report constitutes the end product of a rigorous process of collecting, collating, calculation and analysis of data by the professional Estate Surveyor and Valuer in arriving at his/his opinion of value/worth of the property been inspected or valued and whose outcome is very important to the client.

To know the monetary worth or value of any class of properties for whatever purpose(s), it is mandatory and compulsory to always embark on the services of the Estate Surveyor and Valuer as he/she is the professional that have been trained in the art and science of real estate management and valuation as well as duly registered by the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) via the Nigerian Institution of Estate Surveyors and Valuers (NIESV) to carry out estate surveying and valuation practice in Nigeria.

This article is very important for all those that require the services of professional Estate Surveyors and Valuers, as well as those preparing or sitting for the Nigerian Institution of Estate Surveyors and Valuers (NIESV) Professional Qualifying Examinations (PQE 1-3) and the Professional Practice Examination (PPE) Certificate.

ABOUT THE AUTHOR

Adeniyi Akinjiyan has a Higher National Diploma (HND) in Estate Management from the prestigious Yaba College of Technology, Yaba, Lagos state, Nigeria. He also possesses a Professional Practice Certificate in Estate Surveying and Valuation from the Nigerian Institution of Estate Surveyors and Valuers (NIESV).

He is the principal consultant at Aakient Consultants Ltd, a highly progressive and consolidated property and construction project management company, which is committed to providing the highest level of professional services in meeting clients’ real estate needs.

Feel free to contact him at: aakientconsultants@gmail.com

9 THINGS TO CONSIDER WHEN BUYING LAND FROM TRADITIONAL LAND OWNERS (OMO-ONILE)

One of the easiest and fastest way of buying land in Nigeria is through the traditional land owners, popularly called “Omo-Oniles”. The reasons for these are based on the following factors:

·         Land from the traditional land owners – Omo Oniles – is readily available to all prospective buyers to purchase anywhere and anytime they so wishes

·         Most people still regards traditional land owners as the custodians of land in Nigeria

·         Traditional land owners still lay claims to the ownership of land in most parts of Nigeria

·         Lack of proper and adequate awareness on the part of government as been the overall custodian of land in the country

·         Lands bought from traditional land owners encourages quick location, infrastructural and social development of the populace and environment

·         The sales (monetary) value of land bought from traditional land owners is cheap and easily affordable to the general populace most importantly the low-income earners

So today, I will highlight and identify those important things you should/must consider and establish when you want to buy land from the traditional land owners – “Omo Oniles”

Before you eventually buy that land from the traditional land owners otherwise known as Omo-Oniles, endeavour to consider these following things:

1.      Try to consider and investigate the total land area and size of the traditional land owners is properly printed on a survey plan showing details of the land in relation to its size and positioning

2.      Is the head of family of the traditional land owners aware of the land transaction you are going into but if not so, try to request for his presence/awareness before you finally pay for the family land from them

3.      Confirm from the traditional land owners if the family land you are about buying is not under any known co-operative, government acquisition or committed land scheme

4.      Before you eventually pay for the family land, make adequate preparation and consideration for drafting a well written and registered Transfer Agreement which should be prepared by a legal practitioner between you and the family land owners

5.      Also, you must endeavour to consider asking within and around the locality/area where the land is situated whether the land you are about to buy from the omo-oniles has not been sold to someone else

6.      You must also consider perfecting the title documents of the land purchased from the traditional land owners with the government after completion of the transaction . The process for doing that is called Ratification.

7.      It is also important to trace the true ownership status of the land before you finally pay for it.

8.      Another thing to consider again as a buyer of omo-onile land is the establishment of no legal dispute between the traditional land owners and some other traditional land owners or even among the actual land owners as per the actual owner in respect of the particular land you want to buy.

9.      You should also consider liaising with the duly appointed family head of the traditional land owners before you finally pay for the land.

I hope with the various factors identified above, you are properly placed in the best position to buy any land belonging to the traditional land owners – “Omo Oniles” – in Nigeria

Always employ the services of the professional Estate Surveyor and Valuer to guide you through the process of purchasing/buying land from the traditional land owners – “Omo Oniles” - as they are professionally trained in the art and science of diversified areas of Real Estate Management discipline inclusive of Estate Agency.

ABOUT THE AUTHOR

Adeniyi Akinjiyan is a Higher National Diploma (HND) holder of Estate Management from the prestigious Yaba College of Technology, Yaba, Lagos state, Nigeria. He possesses a Professional Practice Certificate in Estate Surveying and Valuation from the Nigerian Institution of Estate Surveyors and Valuers (NIESV).

He is the principal consultant of Aakient Consultants Ltd, a highly progressive and consolidated property and construction project management company, which is committed to providing the highest level of professional services in meeting clients’ real estate needs.

Feel free to contact him at: aakientconsultants@gmail.com

Real Estate Surveyor's Blog Page

Many people in Nigeria don’t actually know who an Estate Surveyor and Valuer is or what he/she does. Been an Estate Surveyor myself,  I have always had to do some sought of introduction to clients about what my designation (Estate Surveyor) stands for, as well as represents and the kind of professional services i render. It is until after this mini introduction that they now know who an Estate Surveyor and Valuer is, as well as the services he/she renders. Even at this, some of these clients still refer to me as an Estate Agent based on their belief that whoever is talking to them about real estate is an estate agent. 

I am sure you reading this introductory article would have in one time or the other referred to the Estate Surveyor and Valuer as an estate agent too. As true as this may be to some extent, the fact remains that estate agency is just one of the many areas of professional services which the Estate Surveyor and Valuer renders to people.

The Real Estate Surveyor’s blog is a blog page that is dedicated to providing people with adequate and well detailed information regarding various aspects of real estate as a discipline and investment holdings.

The reasons why I have started this Real Estate Surveyor’s blog is based on my passion for the real estate profession in Nigeria, the love I have for Information Technology, and to contribute to the wellbeing of people by offering professional service to humanity.

The blog page is developed to further create awareness about who the Estate Surveyor and Valuer is, and also to explain the various activities they carry out in helping people solve their real estate problems/issues.

The main areas to be covered on this blog page are:

•   Tutorial Articles
•   Industry news/events
•   Inspiration
• Expert advice

TUTORIAL ARTICLES: The Real Estate Surveyor’s blog will focus in teaching and introducing you to the various aspects of real estate discipline as a profession in Nigeria. I will also be writing different types of articles on the various real estate management courses that are taught in our institutions of higher learning in Nigeria.

I will also develop series of tutorial articles to assist estate management students in their studies,, those aspiring to become registered Estate Surveyor and Valuer, and people that wants to invest in real estate. 

INDUSTRY NEWS/EVENTS: A page on this blog will be dedicated to providing you with a content-rich newsletters regarding events and awareness about the latest happenings in the real estate profession in Nigeria and activities of the Nigerian Institution of Estate Surveyors and Valuers. This will range from providing you with information on the next professional qualifying exams, tutorials and venues, Continuing Professional Development seminars/workshop, Annual convention/conference of all members of the Institution (Nigerian Institution of Estate Surveyors and Valuers) and other news evolving within and around the built environment field.

EXPERT ADVISE: Do you have any pondering issues with your real estate studies or investment? Then look no further, as you are in the right blog page where I will guide you on how to make your real estate studies and investment be enjoyable as much as  possible  by offering  professional advise/opinion on how/ways to overcoming these problems.

ABOUT ME

Adeniyi Akinjiyan is a Higher National Diploma (HND) holder of Estate Management from the prestigious Yaba College of Technology, Yaba, Lagos state, Nigeria. He also possess a Professional Practice Certificate in Estate Surveying and Valuation from the Nigerian Institution of Estate Surveyors and Valuers (NIESV).

.

He is the principal consultant of Aakient Consultants Ltd, a highly progressive and consolidated property and construction project management company, which is committed to providing the highest level of professionalism and services in meeting clients’ real estate needs.

Feel free to contact him at; aakientconsultants@gmail.com