When buying or selling a residential property, it is essential that the property’s value
is accurately assessed. This isn’t just so each party can be satisfied that they’ve
agreed to a fair price, but if a mortgage is required, the lender will want to ensure that
the property is valued accurately. This is because the mortgage will be secured
against the property.
Silver Grey can help you with all your residential property valuation requirements,
with all valuations carried out by a RICS Registered Valuer. Please contact us if you
require any further advice or would like to book in a Residential Property Valuation.
A residential property valuation is an assessment of a property’s current market value. Market value is defined as ‘The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing, and where the parties had each acted
knowledgeably, prudently, and without compulsion’.
Most valuations are required due to the fact that a purchaser requires a mortgage from a lender. The lender will want security against the money they are lending, and will therefore
require a valuation from a suitably qualified professional. In essence, the lender will want to know that in the unfortunate event the borrower defaults and the lender repossess, they can sell the property and recover their outlay. Lenders are very wary of this scenario, particularly when there are small deposits put down against a high-value property.
There are other reasons a valuation may be required, such as Help to Buy, Right to Buy, and valuations for tax and legal reasons, but the majority of valuations we carry out are for
The property is visited, measured and its construction and condition assessed. We would look at issues that can affect a property’s value, such as if there are any structural defects apparent, the size of the grounds, improvements such as
extensions and loft conversions and location to local amenities to name a few. We then carry out desktop research from our offices, which includes analysing sold property prices and making the necessary adjustments against comparable
properties. A detailed valuation report is then issued to the client signed by a RICS Registered Valuer.
The guidelines and rules for valuations given in the RICS Red Book are followed when undertaking the valuation survey and desktop research, ensuring that the appropriate professional, ethical and technical principles are followed at all times.
No, a valuation survey concentrates specifically on the market value of a property. Whilst any obvious structural defects may affect the value and be considered as part of the valuation assessment, a RICS Homebuyer or RICS Building Survey is best suited to assessing and reporting on the physical condition of a property’s structure.