What Is The RICS Valuation Survey?

What is What is the RICS Valuation Survey?

Also called also referred to as “Red Book Valuation” also known as a “RICS Valuation Report” These reports are completed by authorized RICS surveyors who adhere to RICS principals. They determine the value of property on the market and determine the amount the buyer or lender can offer. They are required to determine the value of insurance, probate or investments, as well as to redeem equity, such as for example, a aid to Buy loan.

What is the RICS Standard for Valuation?

The guidelines, principles and requirements for the process of valuation are contained in the RICS publication titled, “The Red Book.”

Only members who are registered with the Royal Institute of Chartered Surveyors (RICS) can perform this kind of valuation.

This not only provides certainty in the survey and valuation, it also guarantees that the valuation and advice has been through a rigorous process of quality.

When it’s conducted by an RICS certified surveyor, you’ll have the security of knowing of your RICS ethics codes of conduct support you.

Do I need A RICS Valuation Survey

It is an industry standard. Obtaining this prestigious certification is difficult.

“80 percent of consumers do not get surveys! It’s a risk when someone isn’t.”
(Home Owners Association)

In the absence of a survey, you are risky. It’s certainly a scam. When you’re valuing your house, selling it mortgage, buying or working on commercial projects, take into consideration the financial stress that you’re facing.

Uncertainty about the market value of your property could result in PS1000s. If you’re concerned, RICS Valuation Surveys provide assurance.

What Kind Of Survey Do I Need to Conduct as a Homebuyer?

Let’s first look at the 4 major types of survey and valuation which are performed by an RICS certified surveyor.

RICS “Red Book” Valuation

This is a written value of your home. This is the best option for those who is involved in selling, buying or re-mortgaging. It is also utilized in “Help to Buy” and shares of ownership, and for tax purposes related to inheritance.

It provides you with an independent opinion on whether or not you’re paying the right price for your property.

It doesn’t provide you any data regarding the structural integrity of the building.

RICS Level 2 Home Buyer Survey Report

With this kind of inspection, you receive an in-depth visual inspection on the house. It will examine the apparent state of the property as well as any issues that need to be addressed prior to purchasing.

While it will give you details about the structure visible to the house, it does not provide you with a price.

RICS Level 3 Building Survey

Also known as a Full Structural Survey, this is the most thorough survey of your home. It’s perfect for older homes and those in poor repair or when you plan to build.

The report contains a deeper analysis of the condition of the house along with comprehensive advice as well as an insurance rebuild value.

Similar to in the Home Buyers Report, you do not get a market value of the property.

RICS Level 2 Home Purchaser Survey with Valuation

In addition to the RICS valuation survey as well as a confirmation report of the structural integrity that the house is built upon.

This is great when you want to ensure that you’re paying market value for your property , and also the cost to rebuild it to insure.

Why Can’t My Estate Agent Carry Out a Valuation Survey?

It’s a significant question.

There’s more to the process of valuing a home than merely looking at Rightmove or soliciting an estate agent’s advice. Anyone can claim to be an expert in property valuation however only an RICS certified and registered surveyor who is able to provide a precise valuation in accordance with the code of conduct and ethical standards set down by RICS.

If you’re purchasing or selling your home, there is an untruth that you’ll get the information you require from an appraisal of the market by an agent instead of a genuine value of the RICS surveyor.

Why? Each has a distinct goal.

Estate Agents

They are concerned about selling It’s the best option for them to overvalue the cost of their home. The result is unreasonable expectations for buyers and the seller.
They typically base their estimate on similar properties that have been sold for. They don’t take into account the structural integrity or the condition that can seriously impact the price of the property.
Their appraisals aren’t subject to any governing body, which means you’re not covered in the event that something goes wrong.

RICS Valuation Surveyor

Professionally trained to provide an honest and precise appraisal based on a comprehensive array of variables that are not limited to what comparable properties have been sold for.
They constantly look for imperfections that might influence the market value of the property.
The databases are detailed and provide local and professional knowledge on every property valuation.

There is a lot more to say and on, however, as you can observe, there’s an enormous difference between the two. If you are looking for an accurate appraisal of a property you need an RICS Valuation Survey can provide the information you need.

Property News Room Articles

Bringing you property related news from around the world.