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What is an RICS appraisal?
An appraisal undertaken by an RICS surveyor is a reliable appraisal of the market value of a property—an asset that could potentially be held in real estate investment trusts, for example.
This appraisal, consistent with RICS and Red Book guidelines, involves a vigorous analysis of the determinants of value. The valuers inspect the property and adjacent properties, looking at a number of variables that underpin the value of an asset, from its location to its condition, size, and some would say, to the airspace above the building.
A comprehensive assessment is done by the appraiser that looks at all aspects of a property that could influence its value—anything from the property’s structural integrity and age to the potential for future construction and the presence of various amenities at the property.
The appraisal is then used to arrive at the property’s worth, and it serves as the foundation for any number of decisions concerning the property that might be taken by individuals or businesses.
What is the cost of an RICS valuation?
Several factors can influence the price of an RICS valuation report, including property type, location, and purpose. For standard residential properties, an RICS valuation is generally priced at a minimum £700. For larger and more valuable residential properties, the cost can go up to £1,500 or more. Valuing commercial and specialised properties will be more expensive as the valuing surveyor will require extra time and expertise and therefore will charge more.
Different Types of Valuation: when are RICS valuations necessary?
A proper and detailed valuation of a property should be done in the following instances:
- Buying/selling
- Mortgage
- Transferring assets into SIPP
- Capital Gains Tax
- Probate or transfer of estate (Inheritance tax)
- Right to Buy
- Help to Buy
- Shared ownership
- Divorce (Matrimonial Valuation Report)
- Rent reviews or negotiations
- Reinstatement Cost (Rebuild)
- Shared Ownership
- Tax planning
- Dispute resolution (e.g. mediation)
Property Price Factors
RICS appraisers factor in the following property elements to assess a house’s worth:
- dimensions and size
- age
- state of repair
- building method and materials
- count of sleeping rooms
- site and local zoning
- permits for proposed use
- alterations (e.g. new rooms)
- comparables
- type of tenure
Is an RICS valuation something you require?
There are many occasions when people find it essential to obtain one. When applying for a mortgage, for instance, a lender almost always insists on a mortgage valuation. This is performed by a CIOB, RPSA or RICS surveyor who is instructed to confirm that the property is worth enough to secure the loan in question.
Moreover, if you are looking to buy or sell a property, a valuation by your surveyor will provide you with assurance. You will know that the decisions you are making are based on the true and accurate market value of that property. This fact alone can help you immensely when it comes time to negotiate, whether you are dealing directly with a seller or working through an estate agent. You will have a solid foundation upon which to build your negotiations.
Why is a Valuation necessary?
There are many reasons that make a valuation necessary. First and foremost, the RICS valuation report, based on international standards, is one of the most precise methods of valuing something.
Adhering to rules and guidelines that are as stringent as those demanded of any financial institution ensures objectivity and impartiality, meaning that the surveyor is not unduly influenced.
Reduced Risk: an RICS report allows for early identification of potential property problems and is a good basis for understanding what sorts of issues might crop up in the future.
Valuations are also key to legal disputes, tax planning, and compliance. They ensure objectivity in disputes, fair treatment in legal cases, and adherence to regulations.
Valuations aren’t just for legal purposes, of course. They are also crucial for insurance. Unless a business knows the true value of its assets, it can not realistically insure them.
Investment: an investment strategy helps an investor make decisions about their investment portfolio. Valuations would help in this decision-making process.
Sustainability: efficiency in construction, environmentally friendly features, and products that are sustainable are part of numerous RICS evaluations today.
Global Acknowledgment: CIOB and RICS enjoy a global standing, which brings a level of respect and acceptance to its property appraisal reports when they are used for international business dealings.
Valuation for Divorce (Matrimonial)
A Divorce Settlement Valuation is a service that will enable you to split them appropriately in the divorce settlement. It guarantees that no matter what the terms of the settlement are, the equity is divided proportionately.
Contact us for Property Valuation Canterbury
A CIOB or RICS valuation is an accurate estimate and a detailed profile with genuine insight into a property’s real worth. It is supported by the professional integrity and expertise of CIOB or RICS surveyors.
Our panel of valuers now provides a tailored CIOB/RICS Valuation service that is both comprehensive and accessible to both sides of the transaction—buyers and sellers—who need to know the value of their property. We encourage you to reach out to us with any queries you may have.
