In this week’s Property Blog we are going to be discussing RICS Property Valuations.
More often than not, if you’re about to purchase a property, or are a property owner, you’re going to have to call upon the expertise of a an RICS Property Valuer.
We thought we would take a brief look at some of the more common Valuations that we undertake on a daily basis.
Mortgage Purposes
Owing to the fact that lenders, banks and building societies require a valuation to ensure that the money they loan to buyers is a sound and safe investment. This offers them a fall back, should the mortgagee ever default on the loan, meaning the lender can sell and recoup their losses.
HMRC Purposes
This covers a wide range of reasons; probate, accounting, to name just a few. The HMRC will often insist that these valuations are done by an RICS Valuer or Surveyor. This gives them the peace of mind that a comprehensive approach has been taken to the valuation exercise.
Matrimonial Purposes
Another very common one, the Matrimonial Property Valuation will ensure that the separating parties, husband and wife, wife and wife, husband and husband, them and they, are neutrally informed of the properties worth. This ensures that if one buys the other out, they do so at a fair price and value.
Can I not just have an Estate Agent value it for free?
Well, you can certainly try! However, unfortunately an Estate Agent’s valuation won’t carry the same weight as an RICS Surveyors. This isn’t to say the approaches aren’t similar, or even the same mind you!
In fact when an RICS Surveyors values a property he or she will need to adhere to governing body requirements, rules and methods and often as per RICS own Red Book. This ensures the approach to the valuation is robust and considered.
So now that I know I need a Property Valuer, What do they actually do?
During an RICS valuation inspection, the valuer or surveyor will carefully measure and evaluate the property’s size, characteristics and overall condition.
They are likely to then scoot back to the office where they will thoroughly comparing it to similar properties that have recently sold in the area. Keenly taking note of how the condition, location and size of these properties play into the likely value of the property being valued.
This form of valuation is referred to as the comparable method. In essence comparing the value of an arm’s length property sale against the subject property to carefully build a valuation figure. As with any comparable approach, the more properties, or “comps”, the better!
Once the Valuation Surveyor has reached an informed and confident property value, they will finalise the Valuation Report and circulate it with the client. Job Done, so to speak!
Our take on valuation here at Stokemont is that it is an Art as opposed to a Science!
The comparable information needs to be carefully considered, assessed and cross referenced to the subject property.
If you want to discuss Valuations with our team of Property Valuers, give us a shout today!
