1. Valuation vs Appraisal
Topic 1

2. Valuation vs Appraisal
 Appraisal can have 2 meanings:-
 1. to fix a price
 2. to estimate the amount worth of
 Valuation
 1. The estimation of open market value
Definition of market value?
A property might reasonably
expected to be sold at the
D.O.V assuming? :

3. Board of Valuers, Appraisers and
Estate Agent Malaysia
 The Board of Valuers,
Appraisers and Estate
Agents Malaysia was set up
in 1981 under the purview
of the Ministry of Finance,
Malaysia. The setup and
operation of this Board is
governed by the provision
of Valuers, Appraisers and
Estate Agents Act 1981. Its
primary function is to
regulate the Valuers,
Appraisers and Estate
Agents practising in
Malaysia.

4. Functions
 To keep and maintain the Register of
Valuers, Appraisers and Estate
Agents, Probationary Valuers and Probationary
Estate Agents and firms of Valuers, Appraisers
and Estate Agents.
 To approve and reject applications for
registration.
 To hold disciplinary proceedings.
 To conduct examinations.
 To prescribe Scale of Fees.
 To regulate the professional Conduct/Ethics of
Valuers, Appraisers and Estate Agents.

5. Role of Registered Valuers , Appraisers
and Estate Agents
Valuers
Only a registered valuer can call himself a – "Valuer", "Land Economist",
"Property Consultant" or "Property Manager". He can carry out the
practices of valuation, property management or property consultancy. He
is educated and trained in all areas of real estate use and development,
and is registered only after passing the Test of Professional Competence
set by the Board.
The valuation of real estate is needed for the following purpose:
Financing and credit facilities
Acquisition and disposal
Taxation or other statutory purposes
Investment or other corporate management activities
Securitisation and other asset valuation purposes
Market and feasibility studies
In the exercise of his professional practice, the registered valuer is
bound by various guidelines and practice directions issued by the Board
such as the Manual of Valuation Standards.

6. Role of Registered Valuers , Appraisers
and Estate Agents
Appraiser
Appraisers are registered under Part V of the Act
because of their long experience and earlier
registration under the various Appraisers Acts.
Appraisers can, and are allowed to, practise
valuation and property management but unlike
the Valuers they are restricted in practise by
geographical areas and value.

7. Role of Registered Valuers , Appraisers
and Estate Agents
Estate Agent
Only those who are registered under the Board can
act as Estate Agents. They provide a service in
buying, selling, leasing properties for clients so that,
optimum returns can be achieved.

8. Role of Registered Valuers , Appraisers
and Estate Agents
Property manager
Property Management
Currently only a registered valuer can
practice as a Property Manager. The
property manager ensures that the owner
gets the best returns of his property
investment. He also ensures that the
building is well maintained, the building
services well looked after and all expenses
paid. He is able to optimise usage and
enhance the investment in property. He
advises on lease renewals, selection of
quality tenants and the appropriate tenant
mix.

9. MVS
standard item
Standard One relates to the use of market
value as a basis of valuation
Standard Two the circumstances when market
value is not used as a basis of
valuation.
Valuation Standard Three outlines the standards
expected when preparing
valuation reports for financial
reporting
Standard Four required when valuing
properties as collaterals for
lending to financial institutions.
Standard Five deals with the standards of a
valuer and his qualifications.
Standard Six discusses the condition of
engaging a valuer
Standard Seven discusses the various purposes
of valuation and the basis of

10. MVS
standard item
Standard Eight deliberates the standards
required for a proper inspection
and referencing of property and
neighbourhood
Standard Nine standards required in a
valuation report
Standard Ten standards for preparing
revaluation reports of an
interest in property which are
essentially carried out in
situations where a previous
valuation has been done by the
same firm within a period of 5
years
Standard Eleven explains the standards
pertaining to certain limited
cases where a detailed report
may not be essential in
communicating an opinion of

11. MVS
standard item
Standard Twelve deliberates on the various
methods of valuation
Standard Thirteen considers the use of
assumption in valuations
Standard Fourteen standards for the valuation of
plant and machinery
Standard Fifteen states that all standards issued
by the Securities Commission
Standard Sixteen “Guidelines on Asset
Valuations”
Standard Seventeen sets out the standard limiting
conditions under which the
report is prepared.

12. Registered Members
Licence Type Members
Registered Valuers (V) 762
Registered Appraisers (A) 17
Registered Estate Agents
(E)
1714
Source: Board of Valuer , Appraiser and
Estate Agent

13. Point to ponder
 Price
 Value
 Worth
 How to be a registered
valuer?