The Saudi Authority for Certified Residents defined real estate appraisal as the art and science of estimating the value of real property rights for a specific asset, for a specific purpose, at a specific time, and for specific users, taking into account all the characteristics and features of the property being appraised, and all fundamental economic factors of the market, including all interests, rights, and obligations related to real estate ownership, along with all permanent improvements and associated appurtenances.
The appraisal process or real estate appraisal places real estate assets worth hundreds of millions and billions of riyals under the responsibility of the certified real estate appraiser, which is why the regulations governing the profession emphasize the importance of academic qualifications, training, and experience totaling approximately 3,000 hours, after which the Authority grants fellowship status to certified appraisers, This is, of course, after fulfilling the registration requirements on the platform and completing the initial training program qualifying for Commission membership. Given the seriousness and sensitivity of the real estate appraisal profession; the regulations allow novice appraisers to work at real estate appraisal firms until they gain experience and obtain their fellowship, at which point they are permitted to work independently.
The demand for real estate appraisals is on the rise, especially in a leading market such as the Saudi real estate market, which is evolving with tremendous technological advancements; which will have an impact on this profession—one that is not limited to supply and demand alone. Even in real estate auctions, the organizing bodies need to know the fair market value of the property so that no one falls victim to the trap of fictitious bidding that artificially inflates or deflates prices.
Therefore, real estate appraisals have a direct impact on prices, especially since one of the most common methods is comparison with similar properties. We do not wish to delve into the technical details of a real estate appraiser’s work; as most of them are experienced, knowledgeable, and trustworthy. However, we are concerned about outsiders and erroneous appraisals that could cause harm or undermine the sale from the outset.
Building on the efforts made by both the public and private sectors, we hope to raise awareness by organizing more forums, seminars, and continuing education programs to address the information gap in the field of real estate appraisal, and we hope that, in the very near future, we will see university colleges specializing in this field that produce graduates who will lead the way in real estate valuation.
