Dr. Nada Al-Bakr: Real estate appraisal plays a role of at least 95% in determining the fair market value of a property

Mr. Walid Al-Namla: A real estate appraiser must demonstrate accuracy, credibility, and a sense of responsibility

Ms. Ghada Al-Hakami: Comparison with similar properties is the most appropriate type of appraisal

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real estate appraisal one of the methods for appraising and determining a property’s market value. This process is carried out in several steps based on scientific principles and professional standards by a specialized and trained team. The real estate appraiser must be accredited by the Saudi Authority for Accredited Appraisers.

Due to the significant economic and financial value of real estate, some fear manipulation in the valuation of buildings, especially large buildings and complexes, while others fear incorrect valuations that directly affect the prices of similar properties.

The real estate newspaper “Amlak” conducted a wide-ranging survey on the impact of real estate appraisals on property prices:

Al-Bakr: Economic Variables Are Important

First, Dr. Nada Al-Bakr, the first certified real estate appraiser and businesswoman, emphasizes the importance of practical experience in real estate—including buying, selling, and managing properties—before undertaking real estate appraisal tasks; because real estate appraisal relies primarily on experience and ongoing practical aspects, and a real estate appraiser must be characterized by fairness, integrity, and honesty—the most important principles that a real estate appraiser must not overlook.

Al-Bakr believes that real estate appraisal influences the determination of a property’s fair market value by at least 95%. This is because the appraisal provides the property’s actual value based on the current market, its condition, location, and amenities. Among the most important appraisal methods —as Al-Bakr noted—is calculating the cost and comparing it to similar properties, as well as the expected income. Additionally, economic variables constitute the most important part of a fair valuation, unlike geographical variables, which do not have such a strong impact.

Al-Namla: Academic qualifications are essential

As for Mr. Walid Al-Namla—a café investor—he said that knowledge of the current market and an understanding of the balance between property value, financial volume, and taxes are among the most important requirements for a real estate appraiser’s expertise. and that academic qualifications and specialized courses have become essential for appraisers because the real estate world has become largely standardized among economically strong nations; however, these will be of no use unless the appraiser practices real estate work firsthand.

Al-Namla explained that crises affect property valuations either through concerns about future prospects or when disasters such as the COVID-19 pandemic occur; Therefore, real estate appraisers must prioritize credibility, accuracy, and a sense of responsibility, and base their appraisals on sound real estate principles and studies, free from illusions and rumors.

Al-Hakami: The Impact of a Property’s Location

Ms. Ghada Al-Hakami, Supervisor of the Sales and Purchasing Department and a member of the Rabaiyat Najd Real Estate team, explained that valuation depends on many factors, including construction methods and final finishes, and that some real estate appraisers still need experience and direct exposure to the real estate market to understand projects, their scope, strategies, and so on.

Al-Hakami believes that comparing the property to similar buildings is the most appropriate type of valuation, as it relies on location, price per square meter, and security and safety standards.

She noted that the property’s location directly affects the valuation; for example, there is a significant difference in property prices between northern and southern Riyadh. Additionally, the type of residents is closely linked to this, as real estate agents in some neighborhoods may prefer to sell or rent to people from a certain social class or those with high incomes, and so on.