When selling or letting your property, conducting a valuation is a vital part of the process. Both commercial and residential valuations are used to determine the value of the property. The valuation report, produced by RICS Registered Valuer Scheme accredited Chartered Surveyors like us provides essential information for buyers and sellers alike.
In this blog post, we take a closer look at the Valuation Inspection and Report, explore the differences between this and other types of valuation, and ultimately answer the question – “why do I need a valuation?”.
What exactly is a Valuation Inspection and Report?
As the name suggests, a Valuation Inspection and Report is an inspection of the property and a report of its current value. Not to be confused with a survey, a valuation does not inform the seller or the buyer of any structural damage that’s apparent within the property. It instead analyses several factors to indicate its value in the current marketplace.
During a commercial valuation or residential valuation, a surveyor will consider a long list of factors. Whether the property is of traditional or non-traditional construction, is in good condition or has been recently modernised or refurbished will all influence the final valuation.
Whilst a valuation is by no means a survey, properties that have obvious structural damage, damp, roof damage or faulty electrics will see their value negatively impacted. The surveyor will also take the square footage of the property and its location into account when determining its value.
Is a valuation the same as a mortgage valuation?
There are a number of different valuations that you may be offered when purchasing or selling your residential or commercial property.
A mortgage valuation for instance is used to determine the value of a property if you intend to purchase using a mortgage. The mortgage valuation is generally undertaken at the request and to the advantage of the lender. It is designed to establish whether the property a buyer is planning to purchase is worth what they intend to pay for it and to avoid ‘down valuations’.
A ‘down valuation’ is when the surveyor completing the mortgage valuation states that the property is worth less than the sale price agreed.
What about estate agent valuations?
An estate agent valuation is another valuation type that you may encounter when selling your residential or commercial property. Unlike a Chartered Surveyor led Valuation Inspection and Report, an estate agent valuation uses predominantly local knowledge and current property market conditions to determine the current value of a home or business premises.
The value determined by an estate agent will generally be used as a guide price and is what a seller can expect to receive upon the sale of the property. This however isn’t set in stone. Based on an estate agent valuation, you have the final say in setting the asking price of your residential or commercial property.
Estate agent valuations can vary drastically from estate agency to estate agency, which is why we’d recommend getting at least three estate agent valuations along with a residential or commercial Valuation Inspection and Report.
Why should I invest in a professional, RICS approved valuation?
When compared to both estate agent valuations and mortgage valuations, our commercial valuations and residential valuations provide a much more accurate representation of a property’s true value.
All our commercial and residential valuations are prepared by experienced and fully qualified Chartered Surveyors who are accredited by the RICS Registered Valuer Scheme. With this, our professional valuers, inspect and report on a property’s value using the most up-to-date RICS Valuation or ‘Red Book’ Standards. This means they can be used to secure lending, determine Capital Gains Tax associated with the gifting or sale of a property, or establish Inheritance Tax liability upon the death of the current property owner.
For sellers in particular, commercial valuations and residential valuations ensure a realistic asking price is set. This means sellers don’t underestimate the actual value of the property leaving them out of pocket or price the property out of the market leaving them unable to achieve a sale. Valuations are also useful for calculating your budget if you’re moving onto pastures new and purchasing your next commercial or residential property.
For buyers and investors, our valuations enable a purchase price to be established that’s in line with their budgets and current market conditions. Landlords will also find a private valuation particularly insightful. Our reports are able to determine rental and resale potential, secure funds from lenders, and establish costs and profits involved when letting a property.
How can Rory Mack Associates help me with valuations?
Our Chartered Surveyors offer private residential valuations and commercial valuations throughout Staffordshire, Cheshire and Shropshire. With an abundance of local knowledge and market insights at our disposal, plus experience and expertise as professional valuers, we deliver valuations and advice in accordance with RICS Valuation Standards.
We have a solid, longstanding reputation assisting landlords, investors and purchasers, as well as valuing shops, offices, warehouses and industrial units, land and development sites, investments, and specialist properties.
Let us take care of your property assets, whatever your unique requirements. For further information about our commercial valuation and residential valuation services, please contact us today.