Property Valuations by RICS valuer within Dorset and Hampshire
We have been valuing both commercial and residential properties since the 1980s. We are able to help with sale , acquisition, probate, matrimonial immigration, housing association shared ownership, disputes and various HMRC matters.
We offer a personal helpful service and are registered RICS Valuers. For a competitive price please contact me at the below.
Property Valuations Red Book in Hampshire and Dorset
A red book valuation is the name that is given by practitioners to a valuation report that adheres to the Royal Institution of Chartered Surveyor’s Valuation Professional Standards, also known as the Red Book.
The valuation standards are a set of mandatory rules and guidelines for RICS Registered Valuers to follow when they are undertaking valuations. They do not tell a Valuer how to value a property – that is left to the individual Valuer to use his or her training, experience and judgment – but they do set out the standards that should be followed.
The standards cover such subjects as ethics, duty of care, the qualifications of the valuer and the minimum content of a valuation report. Their aim is to ensure that the report received by a Client is prepared to the highest possible professional standards, that there are no conflicts of interest and, as only RICS Registered Valuers are permitted to undertake red book valuations, that it has been prepared by a suitably qualified practitioner.
Red book property valuations are the preferred form of valuation report for banks when contemplating secured lending, by HMRC for taxation, lawyers that are dealing with property disputes, accountants for capital accounting and charities that need to meet statutory requirements. These parties, organisations and institutions know that when they receive a red book report, the valuation figure is well considered, backed with robust commentary and evidence and will stand up to scrutiny.
Clients often ask what the difference is between a red book valuation and the free ‘valuation’ an estate agent provides prior to sale. Strictly speaking, these are not valuations and instead should be considered as marketing appraisals and are generally not sufficient for taxation, secured lending or accounting purposes. The reason for this is that the recipient cannot be entirely sure of the qualifications, objectivity and independence of the person undertaking this work, whereas with a red book valuation, the recipient knows that the party is a Registered Valuer and is required to undertake a set number of hours training every year and must adhere to the RICS’s high ethical standards. Valuation reports do not comment on defects other than to state the property appeared after a cursory inspection to be in good, reasonable or poor condition. Lofts are not inspected nor are damp meter readings taken.
A RICS valuation report is delivered by a RICS valuer by carrying out following tasks:
- Desktop research: Market research to identify relevant comparables 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 a 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.
There is no longer such a thing as desktop valuation; we will have to reattend and go through the whole process for the same fee as previously.
All valuations are purely for clients and not lenders and we are regulated by the RICS
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Property Valuations – Guardian excerpt
Economists and housing experts are forecasting UK-wide price falls of up to 13%, with “brutal” declines in some areas, as the property market struggles to rebuild during the coronavirus crisis.
The range of forecasts from the major researchers is markedly wider than usual. At one end is the Centre for Economics and Business Research, which predicts that 2020 prices will be down by 13% “as a lack of transactions, high uncertainty and falling incomes take their toll”. But the estate agent Savills said the hit to the market could be more like 5%, and a third of valuation surveyors are predicting that price falls may be limited to 4% or less.
The post-lockdown market will be a buyer’s market, said Jonathan Hopper of Garrington Property Finders, as he forecast falls of 10% nationally and 15% in some areas.
Some of the towns covered are Bournemouth, Poole, Wimborne, Christchurch, Ferndown, Highcliffe, Barton on Sea, Milford on Sea, Bransgore, Ringwood, New Milton, Lyndhurst, Brockenhurst, Sway, Hordle, Winchester, Lymington, Hythe, Southampton, Chandlers Ford, Romsey, Alton, Downton, Farnham, Wimbourne, Dorchester.
There are three traditional groups of methodologies for determining red book property valuations. These are usually referred to as the “three approaches to value” which are generally independent of each other:
- The sales comparison approach (comparing a property’s characteristics with those of comparable properties that have recently sold in similar transactions).
- The cost approach (the buyer will not pay more for a property than it would cost to build an equivalent).
- The income approach (similar to the methods used for financial valuation, securities analysis or bond pricing).
However, the recent trend of the business tends to be toward the use of a scientific methodology of appraisal which relies on the foundation of quantitative-data, risk, and geographical based approaches. Pagourtzi et al. have provided a review on the methods used in the industry by comparison between conventional approaches and advanced ones.
As mentioned before, an appraiser can generally choose from three approaches to determine value. One or two of these approaches will usually be most applicable, with the other approach or approaches usually being less useful. The appraiser has to think about the “scope of work”, the type of value, the property itself, and the quality and quantity of data available for each approach. No overarching statement can be made that one approach or another is always better than one of the other approaches.
The appraiser has to think about the way that most buyers usually buy a given type of property. What appraisal method do most buyers use for the type of property being valued? This generally guides the appraiser’s thinking on the best valuation method, in conjunction with the available data. For instance, appraisals of properties that are typically purchased by investors (e.g., skyscrapers, office buildings) may give greater weight to the Income Approach. Buyers interested in purchasing single family residential property would rather compare price, in this case, the Sales Comparison Approach (market analysis approach) would be more applicable. The third and final approach to value is the Cost Approach to value. The Cost Approach to value is most useful in determining insurable value, and cost to construct a new structure or building.
For example, single apartment buildings of a given quality tend to sell at a particular price per apartment. In many of those cases, the sales comparison approach may be more applicable. On the other hand, a multiple-building apartment complex would usually be valued by the income approach, as that would follow how most buyers would value it. As another example, single-family houses are most commonly valued with the greatest weighting to the sales comparison approach. However, if a single-family dwelling is in a neighborhood where all or most of the dwellings are rental units, then some variant of the income approach may be more useful. So the choice of valuation method can change depending upon the circumstances, even if the property being valued does not change much.
We regularly carry out share ownership and stair casing valuations for housing associations.