THE PROPERTY MARKET ORGANIZATION

INTRODUCTION

The real property market deals for the most part with the buying and selling of land resources that have already been developed and brought into use. However, vacant land and properties that have reached the end of their useful life (latent potential inherent) are also brought into market.

There is no formal organization bringing buyers and sellers together, therefore, there is a need for a valuer engaged professionally for the marketing of properties to provide this service as well as give advice on the problems that may arise on dealing with properties.

 OBJECTIVES

• The objective of this unit is to consider the mode of organization of the property market. 3.0 

The property market organization

This kind of services individual valuer provides to the buyer and sellers vary since there is no formal organization. The valuer must determine the market value or price which is the amount of money which can be obtained for the interest at a particular time from persons able and willing to purchase it. The valuer belongs to professional association and members of the association can relate with one another on agreed term on the selling and buying of properties. The services rendered by valuer include the following:

• Advisory role by virtue of his knowledge and experience of the market: though the main agency function is to bring the buyers and sellers together. The valuer also assists the real estate investor who needs to know what kind of property is in demand, what is in supply and the prices being paid in considering either acquisition or disposal, investment and other market transactions. 
• Contact in the property market: The valuer’s knowledge usually extends beyond an application of general demand as it also includes an acquaintance with the individuals requirement of many buyers and sellers concerned with property which have no general market. In this situation, the agent puts buyers and sellers of property in touch with one another. 
• Skill in advertising and negotiation: The valuer advises on how and where to advertise and undertake all the other necessary arrangements. He is also equipped to negotiate the best terms obtainable whether acting for the buyer and seller of a property. 
• Estate agents/valuers cooperation: This include joint-listing and canvassing among each other, thereby meeting the requirements of all the buyers and sellers with which they are concerned. Therefore, the market is widened and greater opportunity for business is created. 
• Auctions and tenders: These arrangements call for considerable skill and experience which many valuer can supply. In the case of auctions, the property will be advertised at a certain place and time. Bids for the purchase of the property are invited and the offer by the bidder of the highest price may be accepted. However, before auction, a price may be fixed below which the property will not be sold. This fixed price is known as “Reserved price” and the unfixed price is known as “unreserved price”. If the property is to be sold by tender the vendor’s valuer invites written offer to be submitted by a certain date, the vendor through his agent will now negotiate with the prospective purchaser that submitted the highest price (i.e. made the highest offer). 
• Other advice: in addition to the above services rendered by the estate surveyor to the buyers and sellers, he can also give other advice which is often necessary in the disposal or acquisition of a property. This is usually in the nature of advice on building cost, planning requirement or legal matter before the other appropriate professional advisers are consulted. He is of assistance to the estate owner in deciding what further expert advice might be needed. When there is a proposal to sell an estate, there are a number of questions to be considered in order to obtain the best possible terms, which usually but not always, means the highest price obtainable. The main issue to be decided is the way the estate is to be allotted out, the timing of the sale, method of sale, the asking price and other terms of sale. 

SELF ASSESSMENT EXERCISE 1

Highlight the role of estate surveyor and valuer in real estate market organization. 4.0 

CONCLUSION

You should be able to differentiate property market organization from other types of markets 5.0 

SUMMARY

The unit had covered the organization of the property market and the role of the valuers in the market organization.