When buying or selling a property, understanding its actual value is key. This is where an RICS Valuation Survey comes into play (sometimes called an RICS Redbook valuation). RICS stands for the Royal Institution of Chartered Surveyors, a professional body that sets global standards for the property industry. An RICS Valuation Survey is a comprehensive assessment of a property's value conducted by a qualified surveyor who is a member of RICS. In this blog, we'll closely examine what an RICS Valuation Survey is and why it's essential.
What is an RICS Valuation Survey?
An RICS Valuation Survey is a detailed report that provides an unbiased and professional assessment of the value of a property. The survey is conducted by a qualified surveyor who is a member of RICS. They will use their expertise to evaluate the property's worth based on several factors, including location, size, condition, and comparable sales data.
What types of RICS Valuation Surveys are there?
Mortgage Valuation Survey: This type of survey is usually required by mortgage lenders to determine whether the property is worth the amount of money being lent. It's a basic report that only looks at the property's overall condition and does not provide any detailed information.
Homebuyer Report: This report is more comprehensive than a mortgage valuation survey and includes details on the property's condition, any defects or issues, and an estimate of the repair cost.
Building Survey: This is the most detailed type of RICS Valuation Survey and thoroughly analyses the property's construction, including any potential defects or issues. This survey is recommended for older or unusual properties or those that have undergone significant renovations.
What happens on an RICS Valuation?
A RICS home valuation typically involves an assessment of the property's current market value, based on its condition, location, and other factors that can impact its value. A RICS qualified surveyor will conduct the valuation and provide a report outlining their findings and the estimated value of the property.
The surveyor will typically conduct a visual inspection of the property, both inside and out, to assess its condition and identify any issues that could impact its value. They will also review local market data, recent sales of similar properties in the area, and other relevant factors to determine a fair and accurate valuation.
Why is an RICS Valuation Survey essential?
An RICS Valuation Survey is essential for several reasons, including:
Accuracy: The surveyor will provide an accurate assessment of the property's value, taking into account several factors that could affect its worth. This information can be crucial when negotiating a fair price for the property.
Transparency: The survey provides transparency and clarity about the property's condition, any potential issues, and the cost of repairs. This can help buyers make an informed decision about whether to proceed with the purchase.
Legal requirements: In some cases, an RICS Valuation Survey may be required for legal purposes, such as probate or divorce proceedings.
Peace of mind: Knowing a property's actual value and condition can provide peace of mind for buyers and sellers, reducing the risk of disputes or issues down the line.
Do I need an RICS Valuation Survey?
If you're buying or selling a property, getting a valuation survey is generally recommended to ensure you're getting a fair price. If you're applying for a mortgage, your lender will require a basic mortgage valuation survey as a condition of the loan.
If you're buying a property, a Homebuyer Report or Building Survey can provide you with more detailed information about the property's condition and potential issues, which can be essential factors in your decision-making process.
If you're selling a property, a valuation survey can help you determine the fair market value of your property, which can be helpful when setting your asking price.
Additionally, if you're involved in any legal proceedings that affect the value of a property, such as probate or divorce proceedings, an RICS Valuation Survey may be required.
It's always a good idea to consult with a qualified surveyor or property professional to determine whether a valuation survey is necessary for your situation.
Can’t My Estate Agent Carry Out a Valuation Survey?
Yes, estate agents can provide an estimated valuation of a property. Still, their valuations are typically based on their knowledge of the local market and recent sales data rather than a formal assessment of the property's condition and value. It's important to note that estate agents are not trained or qualified surveyors, and their valuations may not be as accurate as those provided by a member of RICS.
Additionally, estate agents may have a vested interest in securing a quick sale and may therefore overvalue a property to get it listed with them.
How Long Does an RICS Valuation Last?
A mortgage valuation survey is usually valid for a few months, as the lender wants to ensure that the property is still worth the amount of money being lent.
What Happens If My RICS Valuation Survey Expires?
If your RICS Valuation Survey report expires, it means that the valuation contained within the report is no longer valid, and you will need to obtain a new report if you require an up-to-date valuation.
How much do RICS valuations cost?
The cost of an RICS Valuation Survey can vary depending on a number of factors, including the size and location of the property. It is best to get in touch and tell us more about your property.
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In conclusion, it's always a good idea to get a formal valuation from a qualified surveyor, particularly if you're buying or selling a property, to ensure that you have an accurate and unbiased assessment of its value.
If you need chartered surveyors with expert knowledge of properties in Surrey and the surrounding areas, contact Surrey Surveyors today. Thanks for reading.