RICS Valuations
Summary
Whether you are buying or selling a Property, an accurate assessment of its market value can provide important insights. Getting a Property Valuation gives you the ‘market value’ of your home. In a nutshell, the market value is how much a buyer would be happy to pay, assuming that they are willing to pay the current market rate and do not have any pressure to buy. At the same time, it reflects the amount that a property seller would be willing to accept after their home has been on the market for a reasonable period, provided that they are neither over-eager nor reluctant to sell.
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Once complete, Valuations are normally valid for 3 months.
All You Need to Know About Red Book Valuations
When it comes to assessing property value, RICS (the Royal Institution of Chartered Surveyors) provides a definitive framework for professional valuations known as the ‘Red Book’. This globally recognised standard ensures transparency, accuracy, and reliability in property valuations.
What is a Red Book Valuation?
A Red Book valuation is more than just a property price estimate – it’s a comprehensive assessment conducted by a RICS Registered Valuer following strict professional guidelines. These valuations provide a robust, legally defensible market value assessment.
When Do You Need a Red Book Valuation?
Any time that you need a formal property valuation for tax purposes or legal proceedings, a RICS Registered Valuer will need to conduct a Red Book property valuation.
Red Book valuations are crucial in several scenarios, including:
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Tax planning and probate calculations
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Capital Gains Tax assessments
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SIPP pension fund asset transfers
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Charity property sales (in line with the Charities Act)
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Divorce and legal proceedings
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Mediation and arbitration disputes
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Rent reviews and property negotiations
The Red Book Valuation Process
A typical Red Book valuation involves:
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Detailed property inspection
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Comparative market analysis
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Assessment of three comparable recent property sales
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A formal written report detailing the property’s market value
A Red Book valuation is typically valid for three months, but it can be extended in certain circumstances.
Why Choose a RICS Registered Valuer?
Working with a RICS Registered Valuer ensures:
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Adherence to international Red Book standards
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Rigorous, impartial assessment
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Comprehensive property evaluation
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Legally recognised valuation documentation
What is a Valuation?
A Valuation of a residential house or flat typically involves a short visit to the property, along with desktop research. Evidence from both the visit and the research are combined to determine the market value of the home. Our Surveyor will make a visual inspection of many aspects of the property when making a Valuation.
These can include:
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how the property was built and what it is made from
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the size of the buildings and grounds
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the presence of outbuildings, garages, and parking
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the structural condition of the property
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whether there are any serious defects
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recent improvements to the property, such as extensions or loft conversions
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the location of the property – its desirability, proximity to local amenities and the quality of the local amenities
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information on the sale price of three/four comparable homes nearby that have recently been sold.
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It is important to remember that Valuations are not Home Survey Level 3 (Building Surveys), RICS Home Survey Level 2 (HomeBuyer Surveys) or Home Survey Level 1 (Condition Surveys). Properties can have many defects, both major and minor, that do not affect market value but that do require costly repairs and maintenance. For this reason, if you are purchasing a property it is a good idea to have a Home Survey Level 3 (Building Survey) or RICS Home Survey Level 2 (HomeBuyer) done.
