There are numerous circumstances in which clients will require a valuation report undertaken and written by an RICS Registered Valuer including tax planning, probate, matrimonial or to be used in court proceedings. As a general rule, the majority of valuations will fall under the RICS Valuation Standards Manual (known as ‘The Red Book’) and will have to meet the governing body’s strict criteria.
Consistency, objectivity and transparency are fundamental to building and maintaining public confidence and trust in valuation work. In order to achieve this the valuer must possess appropriate skills, knowledge and understanding of the respective field and work and conduct themselves in a highly ethical manner. Clients must clearly understand the exact nature of the instruction and what to expect from their surveyor who’s report must be clear and easy to understand whist conforming to recognised practices.
The most recent global edition of the RICS Valuation – Global Standards, or RICS ‘Red Book’ incorporates significant changes taken from the International Valuation Standards (IVS) 2017 along with progress in international standards for ethics and for measurement.
All of Peter Barry’s Chartered Surveyors who undertake Red Book work are also Registered Valuers and are experienced in a variety of valuation fields.
A property valuation is carried out on your behalf (or on behalf of your lender), to accurately determine the current market value of your home or business premises. Precise details will vary according to your circumstances, but the valuation almost always takes the form of a report that includes data supporting your property’s value.
To accurately determine the value of your property, your valuer will need to visit it in person. Following their site survey, they will conduct research into similar properties in the local area, ultimately producing a concise document with their conclusive valuation.
In the case of commercial property, after their initial visit to the premises a valuer may be able to periodically perform desktop valuations of the building. These can be more cost-effective for both parties, although they do rely on no major changes being made to the structure.
The surveyor will use a combination of data gathered from the property and information they have about the local area.
For example, they will take into account the measurements, condition and general presentation of each room, as well as the building as a whole. The valuation will also consider the outdoor elements of the property, including gardens, outbuildings and parking structures (garages, carports etc.) It may be the case that your property has a feature or defect that substantially affects its value, in which case particular attention may be brought to this in the valuation report.
Your surveyor will then research recent sale prices of comparable property in the local area, and consider how any planning restrictions, upcoming projects or land zoning may affect the total value of your home.
The majority of buyers will find that they need a property valuation before their lender approves their mortgage application. This is carried out on behalf of the bank to ensure that the value of the property matches the amount you are intending to borrow, in the event that they should need to recover outstanding payments.
You may also choose to have a professional valuation before selling a house, for probate purposes or to calculate the worth of an estate in matrimonial proceedings.
The figures provided by estate agents are not the same as a formal valuation that has conducted by a surveyor or qualified valuer. The appraisal given by an estate agent is intended to win your business as a seller, and is too-often calculated with their commission in mind.
Reputable agents will use their local experience to provide you with an honest figure when it comes to pricing your home but, even still, they are not obliged to work to the same professional standards as a RICS-approved valuer or to provide you with a technically accurate, factually supported quote.