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An RICS valuation is a property valuation undertaken by an RICS surveyor, which is an authoritative appraisal of the market value of a potential asset. This professional property’s appraisal follows the guidelines strictly set by RICS and the Red Book. Though they comply with the highest standards, RICS surveyors still use the judgment necessary to be in line with valuation determinations.
The process starts with an inspection of the asset. The surveyor looks for numerous factors that drive the property’s value, from location to specifics of the condition and the size of the asset. They also examine the value trends that have occurred and are happening in the local market. The surveyors undertake a rigorous analysis. Valuations performed by RPSA, CIOB and RICS members are recognized throughout the world. They are respected because they are long-standing organisations and require that their members follow the valuation process in a rigorous manner.
The cost will depend on several factors, including the kind of property, its location, and the valuation’s complexity and purpose. For a typical residential property, an RICS valuation will usually set you back around £700 to £1,000; however, it could go beyond this for an especially large and valuable property and even more if we consider that to value commercial and specialised property requires increased expertise and time.
A formal valuation of a property or building should be undertaken in the following situations:
RICS Valuations take into consideration the following property factors to determine value:
There are several situations in which an RICS valuation is essential. For instance, when applying for a mortgage, a mortgage valuation is nearly always demanded by the lender. They want to see an impartial assessment of the property’s value from a professional property surveyor. And, for legal matters such as probate, divorce settlements, or tax planning, you also want a fast, reliable, and impartial professional opinion of the property’s value.
Another instance is if you’re buying or selling a property and you want to be sure that the figure you’re working with is close to the market value. That’s a very good reason, and one that carries a lot of weight in negotiations with either a seller or an estate agent.
Why a valuation? Simply put there are many reasons why a valuation is required:
Fully Reliable: an RICS valuation report is prepared by a Chartered Surveyor, someone who must pass numerous challenges and conditions to obtain that designation. After they are qualified, they are regulated with great care. This guarantees that the report is not only reliable in the sense that you can trust it, but also that it is precise (i.e. it gives a figure that is true to the property within the context of current and immediate past market conditions).
Compliant with Standards: RICS surveyors and other accredited surveyors must follow strict rules to ensure that their valuations are 100% accurate, fair and reliable.
Market Insight: surveyors are uniquely positioned to best understand the current property market, meaning their valuations will follow relevant market trends.
Mitigate Risk: getting an early report means you’ll be less likely to run into issues later with a property.
Making an Informed Decision: a RICS Valuation Report gives you all the information necessary to make sure you’re making the right decision on a property.
Tax planning: valuations are essential to ensure objectivity in cases of disputes, fair treatment, and adherence to regulations.
Insurance Purposes: valuations help you to claim the right amount of insurance cover, protecting against the risk of under insurance.
Investment: an investment strategy is essentially a set of rules, or a methodology, that a person will use to help them make decisions about their investment portfolio, which a valuation would assist.
Insights on Sustainability: construction efficiency, environmentally friendly and sustainability features are a part of numerous CIOB, RPSA and RICS valuations today.
World-Wide Recognition: RICS and CIOB are an internationally recognised bodies, so the relevant valuation reports are both respected and accepted in relation to international ventures and investments.
The current state of the market must be reflected in the valuation, but what really counts is that the value it assumes is absolutely objective, making it a vital instrument for anyone with a vested interest in property deals. The RICS valuation is a thorough operation that checks the property’s true worth, commanded under the authority and professional competency of the RICS surveyor.
Our panel of valuers is designed to help you by providing a comprehensive RICS Valuation that trims the fat off and gets straight to the heart of the matter—whether you’re buying or selling a property, support of our servicer is at your disposal.
The Non-Domicile Valuation applies to individuals who are living in the UK but are not domiciled here. It is an important form of assessment for individuals who own property in the UK, especially if they could be held liable for inheritance tax on their worldwide assets.
A Divorce Settlement Valuation provides a means of ascertaining the true value of your property so that it can be divided accurately in your divorce settlement. This guarantees that you will not be short-changed and that any joint property will be fairly valued for division among the parties.
The Full Building Survey report includes the following:
When it comes to the detail that the surveyor will go into concerning defects, repairs, and maintenance, the Homebuyer Survey is fairly standard. Full Building Surveys, however, are more refined and go into more detail about possible and likely defects. Repairs and maintenance are covered in more detail. The Survey cost depends on the age, size, and value of the property.
The analysis they undertake is a visual inspection. This means that, for the most part, the building components that can be seen will be looked at and assessed in accordance with the surveyor’s remit. The Home Survey Report will show you the visible defects and then go on to discuss the kinds of partially hidden or totally hidden defects that the surveyor thinks you should be aware of. It will also try to clarify what kinds of repair work need to be done and the nature of the repairs. The survey is effectively a way to consider “defects” and their potential impact on the building.
A Building Survey Report contains the most important information for understanding the condition of a property. The surveyors that undertake the work follow a set procedure. The first part of the report contains a general overview of the property and its surroundings. The second part details the major and minor problems with the property’s components, inside and out. These problems range from serious structural defects to issues with doors or windows that don’t close properly, and everything in between. The report is written in clear English, complemented by diagrams and photographs. If any of the problems found are what a surveyor might consider important, that’s what the report indicates—using clear and unambiguous language.
Surveyors usually use a tick box to indicate methods of repair when drafting a building survey report. They are also required to comment on the timescale of any repairs. A condition rating is typically included: what needs to be addressed immediately, what is in the process of deteriorating but is in reasonable condition, and what has not deteriorated at all.
A building surveyor is responsible for a variety of checks and tests during a building inspection. These could be checks or tests for damp and woodworm, or they could be visual inspections of the building’s structure. In building surveying, there are visual inspections of roofs – checking for tiles and slates (if applicable) and also checking for leadwork (if applicable) and looking at the junctions between roof and wall. If the wall structure has brick in it, the surveyor will visually check for any “spalling” (brick breaking apart visibly) and any bulging (brick failing to hold its place visibly), for example.
If defects need fixing immediately, then the options recommended for this survey specify what to repair and give some idea of how long the problem has existed. For the most part, this survey describes recommended repair approaches that are standard in the industry and that do not require excessive expenditure. Future maintenance is also discussed, including what to expect when the problem being surveyed is not repaired and what to expect with repairs that are made but with questionable methodology.
Your surveyor will explain some of the legal aspects of purchasing the building, covering—in as much or as little detail as you desire, and their implications, but this is subject to your solicitor verifying.
You might consider having a separate market valuation done to determine whether the property’s asking price is warranted. You’ll also need a reinstatement cost valuation for insurance reasons.
RICS’s industry guidelines suggest building surveys for properties that are large, very old, in some disrepair, or have unusual features. Building surveys are also recommended if you plan to do any significant renovations or extensions.
If you’re purchasing a relatively modern home that’s in decent shape and built to ordinary standards, then a Home Buyer Survey is an acceptable choice. If you want the assurance of an inspection and report that are pretty much guaranteed to turn up any issues that might be hidden or just hard to see, then you should go for a Full Building Survey instead.
The Full Building Survey is more detailed; it is more specifically tailored to the property your surveyor would be inspecting. It also comes with more advice on the visible defects found and on the potential hidden defects that they suspect may be present. Your surveyor will illustrate reports with photographs so that you can clearly see what has been discovered. Both the Home Buyer and Full Building Surveys describe the repairs needed, the order in which the repairs should be done, and the kind of “maintenance measures” that will be required to keep the property in good condition.
A HomeBuyer Report does include a market valuation as well as reinstatement costs. However, a Full Building Survey does not. The main reason for the differences in what is and isn’t included in the two types of reports is how focused the reports are on the condition of the property. The Full Building Survey is the most in-depth and comprehensive survey of a property that you can have done.
When the splitting of assets in a divorce becomes a matter of dispute, it is essential that property be valued impartially and accurately. The courts may appoint a certified valuer affiliated with the Royal Institute of Chartered Surveyors, Chartered Institute of Building or Residential Property Surveyors Association to provide expert guidance on the fair and reasonable division of property in a divorce. You might also obtain your own valuation of property to ensure you have received your just and equal share to minimize future reparative legal expenses.
Looking for a Chartered Surveyor? If you are buying a property, contact us for a building survey. Our panel of CIOB, RPSA and RICS surveyors will help you with the Level 2 or Level 3 property survey you need in Notting Hill. We can also assist you in Red Book Valuations, Party Wall Awards and other services. Reach out to us today for building surveyors, valuers and party wall surveyors in London!
