Proper valuation vital on real estate market, says CBRE
Valuation – whether for bank financing or transaction purposes – is considered vital on the real estate market as it produces the value that will be stated in the books in the long run, and hence will have further implications for the perceived business plan of the valuation addressee, CBRE Hungary stresses in a press release sent to the Budapest Business Journal today.
Since the financial crisis, it is increasingly important for valuations to be well founded and to meet the highest professional standards, the CBRE press release notes.
Today in Hungary, anyone with the relevant OKJ (National Training Register) training can become an appraiser, CBRE explains. The appraiser’s work carries a significant risk in the instance of a property worth hundreds of millions (or even billions) of forints. If a valuation is subsequently found to be inaccurate, the client’s damages cannot be recovered, since in Hungary the upper limit for the provisions of appraisers rarely exceeds a few tens of millions of forints.
CBRE claims the majority of its valuers are experts registered with the Royal Institution of Chartered Surveyors (RICS), the worldʼs leading professional body for qualifications and standards in land, property, infrastructure and construction, which works to implement the highest professional international standards.
“We are proud to have a mix of Hungarian and international colleagues in our Budapest office. Our expert valuers meet the strict RICS and complex CBRE internal requirements,” noted Margaréta Mészáros MRICS, registered valuer and head of valuation at CBRE Hungary.
“We are glad to see a major firm such as CBRE in Hungary recognizing the importance of employing RICS registered valuers, thereby offering greater confidence and professionalism to their clients,” added Anna Orcsik, regional manager for RICS in Central & Eastern Europe. “RICS registered valuers are bound by the highest professional and ethical standards through RICS’ Red Book and rules of conduct, and are therefore the preferred choice of any client looking for competent and consistent valuation work,” she added.
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