Before selling or buying a home, a seller has to know how much to ask for it and a buyer has to know its value. This allows the seller to organise the funds or financing to complete the purchase. The best way to get a home’s valuation is to get an RICS valuation survey. If you are in the market for a home, you should know what this type of valuation is before you go forward with the purchase process.
What is an RICS Valuation Survey?
An RICS valuation survey is completed by property valuers registered with the RICS according to the set Red Book standards. These surveys are also known as Red Book Valuations, and are meant to establish the fair market value that a seller can ask for and that a buyer should offer or pay.
Once the chartered surveying is done, the report produced can also be used when refinancing a home or repaying a Help to Buy loan. They are also important for mortgage lenders who want to know that the amount loaned is equal to the property’s value. This way, they can recoup the whole amount in case of a default.
RICS Valuation Standards
The standards, principles and guidelines followed when conducting RICS surveying are contained in “The Red Book”, a publication available to chartered surveyors. These are the gold standards of valuation, helping ensure the most accurate and reliable valuations.
These standards also ensure consistency between surveys and that the valuation and expert advice provided is of the highest quality. Additionally, because they are conducted by RICS registered property surveyors, you are sure that all ethical codes of practice are followed during property surveys.
Conducting a Valuation Survey
If you are selling or buying a home, the first step in getting a property’s valuation is getting in touch with a house surveyor in Norwich or your local area. The survey will typically include two things: a site visit and desktop research. The site visit is for the surveyor to look at the property and determine what would factor into its valuation. For example, they might note improvements and upgrades that could make a home more valuable.
Desktop research rounds out the process, helping them use various sources of data and information to determine a property’s value. They can use information such as recent property sales in the area or the property’s location when doing their research.
Types of Surveys You Can Have Done
There are three types of surveys depending on what you need. The first is the valuation or “Red Book valuation”. It tells you whether you are asking for or paying a fair price for the property.
The second is a Level 2 survey which includes a visual inspection of the home. This survey gives you information about the property’s observable condition and not a valuation, although this is often offered as an add-on. Level 3 surveys are comprehensive surveys, giving you a valuation an any rebuild costs.
An RICS valuation survey is crucial if you want to sell, buy or refinance a home. They are conducted by chartered surveyors who ensure they are done right, to the highest standards of quality, and following a code of ethics.