An independent valuation from a RICS registered valuer is a fair “Market Value” (MV) of the property as set out in the definition given by the Royal Institution of Chartered Surveyors (RICS Appraisal & Valuation Standards – Also known as the Red Book) and which is as follows:
“The estimated amount for which a property should exchange on the date of valuation, between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion”.
Why do I need an independent RICS valuation?
You may need an independent RICS Valuation for one or more of the following reasons:
- Help-to-buy: To calculate loan redemption figure
- Shared Ownership: To derive shared ownership equity value
- Probate: To calculate inheritance tax liabilities as required by HMRC
- Capital Gain: To assess capital gain from retrospective and current valuation
- Matrimonial: To derive equity value within marital property
- Buy-to-let: To understand rental value and mortgage affordability
- Dispute Resolution: To assess share of joint properties in case of dispute
- Immigration Purposes: To provide evaluation of immovable assets
- Buying Property: To know property’s market value to avoid paying too high price
- Selling Property: To ascertain property’s market value to price it right for a quick and efficient sale
How is a RICS valuation undertaken?
A RICS Registered Valuer delivers the RICS valuation report by carrying out following tasks:- Desktop research: Market research to identify relevant comparable that are like for like in terms of property type, size, and age and within limited distance to the property being inspected.
- Visual inspection: Undertake an internal and external visual inspection of the property to the extent which is accessible with safety and from within the boundaries of the site and/or from adjacent public/communal areas.
- Post inspection analysis: Post inspection ‘number crunching’ i.e. translating the raw data into usable outcomes for the valuation report. The valuation report is produced in simple English and is compliant with the RICS valuation report requirements.