A Guide to Property Valuations

Whether you’re considering selling up and moving onto pastures new, are simply curious about how much your property is currently worth, or are looking to re-mortgage, determining your property’s value all comes down to that all-important valuation. There are many factors that influence the true value of your property, and with this, seeking professional help is a must. 

As a specialist in residential valuations and commercial valuations, we regularly assist clients throughout Staffordshire, Cheshire and Shropshire, and use our industry experience, market knowledge and the RICS Valuation Standards to make our valuations as accurate and fair as possible. But how are our property valuations determined? 

Here we dig little deeper into the world of property valuations so clients, landlords and investors like you know exactly where you stand.

What exactly is a property valuation?

As the name suggests, property valuations (whether residential valuations or commercial valuations) are used to determine the market value of your property. 

The market value is essentially how much a prospective buyer is likely to pay for the property. It also offers an essential guide to how much, as a seller, you should be willing to sell for, providing your property doesn’t remain on the market for a prolonged period of time.

What about a ‘Red Book’ valuation?

If you’re currently seeking help with property valuation or are busy researching your options, you are likely to have come across one term in particular – ‘Red Book’ valuation.

A Red Book valuation is a valuation in which a surveyor that is registered with the Royal Institution of Chartered Surveyors (RICS) and is therefore an accredited RICS valuer conducts the valuation. Unlike other valuers and estate agents, an RICS valuer will undertake residential valuations and commercial valuations in accordance with the latest rules and guidelines as stipulated in an RICS publication known as the ‘Red Book’.

A Red Book valuation represents a gold-standard valuation that uses ethical, technical principles to determine a market value for a property that is reliable and evidence-based. Here at Rory Mack Associates, our RICS valuers provide Red Book valuations that our clients can rely on.

Which factors do you take into account to determine value?

To determine the value of your home, business premises or commercial property as accurately as possible, our RICS valuers analyse a wide and varied range of factors. These include but are not limited to:

• The property’s build date or era 
• The property’s construction (i.e. what it is made from)
• The size of the building (or buildings) and grounds
• The presence of other buildings, such as outbuildings and garages
• The availability and accessibility of parking
• The condition of the property, including its structural integrity, any serious defects and recent improvements/additions
• The location of the property, plus the desirability of the area, its access to local amenities and travel links etc.
• The sale prices of similar, recently sold properties within the area. 

These factors are reviewed with a visual inspection of the property and surrounding area. Residential valuations and commercial valuations also involve a considerable amount of research, including the gathering of background information and property market insights.

Is a property valuation the same as an estate agent valuation appraisal?

Residential or commercial valuations and estate agent valuation appraisals are two types of valuation that are easily confused. The two valuation processes and what each offers however differ vastly. 

Whilst both are used to establish the market value of a property, commercial and residential valuations determine a market value that both the buyer and seller should be willing to accept. These types of valuations also delve deeper into the structural condition of the property, with the RICS valuers that conduct them able to identify defects that could affect the property’s value. 

Unlike estate agent appraisals, the surveyor conducting a valuation is held accountable, and as a result can be sued. Surveyors also cannot offer their services if there’s a conflict of interest. With this, residential valuations and commercial valuations provide a fair and accurate market value.

Valuation appraisals on the other hand are provided by estate agents, who aren’t trained to spot serious defects that can detract from the property’s value. They focus on the aesthetic value of the property, whilst also relying heavily on comparable sold and under offer prices in their own portfolio. Surveyors use a similar method but instead are able to access detailed, larger databases and are obligated to compare a minimum of three properties when valuing a residential or commercial asset.

An estate agent valuation appraisal is designed purely to generate a sale. As a result, the market value determined is more likely to focus on maximising returns for the estate agency they represent and their client.

Estate agents cannot be held accountable for this service and earn commission from their listings and sales which could indicate a certain bias.

I have a specialist property, where do I get valuation help?

Here at Rory Mack Associates, we understand that very few properties are exactly the same. Each has its own unique features, so if you class your property as a specialist asset, we can assist. 

We have experience undertaking residential valuations and commercial valuations across a wide range of assets, including specialist properties such as public houses, petrol stations, nightclubs and restaurants. 

To find out more about our residential valuations and commercial valuations, and how we can help, please contact us today.