A property’s value should reflect the present worth of the future benefits of owning it. This influences key factors including raising finance, taking adequate insurance, and distributing shares of a deceased estate in turn. Therefore, this is not something we should take lightly. We consider the critical aspects of RICS property valuations in determining true worth.
The Basis for Determining Accurate Valuations
An accurate property value is critical, particularly where several inheritors share the proceeds of a deceased estate. Failure to observe this principle can envelop an executor in protracted disputes, even litigation. It follows executors must apply values reflecting property worth as if sold on an open market without duress.
How Do RICS Property Valuations Fit Into This?
A RICS value is true to the principles contained in the Royal Institution of Chartered Surveyors’ (RICS) Red Book publication. Moreover, a RICS-compliant surveyor is duty-bound to comply with these guidelines. Should they fail to do so, then they could face ethical, professional and technical sanctions.
All RICS property valuations use the same proven procedures across the length and breadth of England. They depend on concrete evidence they must cite in their reports. Avery Associates has a panel of qualified RICS surveyors serving all areas in the south of England. We believe there is no better guarantee of quality work, timeously done.
What Concrete Evidence May I Expect in a Report?
A RICS property valuator should visit a subject property to confirm physical aspects, and general state of repair. This includes the nature of the terrain, the structural condition of the improvements, and the physical location in terms of amenities.
Isn’t That What Estate Agents Do?
To an extent yes. However, most estate agents only classify a house in terms of its benefits in their minds. Therefore, they are not intent on spotting defects that might make the property difficult to sell.
A wise executor delves deeper than this, in their search for an equitable distribution of assets. RICS property valuations should include a solid assessment of the state of the property, and future costs attached to abnormal repairs and maintenance.
RICS Property Valuations Versus Property Appraisals
Estate agents typically focus their attention on generating a sale, as opposed to necessarily volunteering defects. They may either:
- Over-appraise the value, to increase the financial benefits for themselves, and the clients
- Under-appraise their value to create a storm of interest, and a rush of competitive bidding
When we may ask their honest opinion for purposes of probate, this commercial approach is almost inevitably bound to influence their thinking.
FIRST IMPRESSIONS COUNT
Estate agents appreciate the power of ‘kerb appeal’. This creates a first impression of ‘no, I don’t want it’, or ‘perhaps’. Cosmetic aspects of a property may therefore cause them to see past structural defects. These are things experienced RICS valuers look out for deliberately.
IT’S ALL ABOUT LANDING A MANDATE
Appraising a property is a possible precursor to landing a sale in an estate agent’s mind. They are usually under no obligation to justify their opinions, and may be selective regarding the comparable properties they choose to discuss.
The same logic can knock through when valuing a property for probate. In this regard it’s critical to remember we are valuing a property for probate and / or inheritance tax. And an over-ambitious value can hit the estate in its pocket!
RICS Property Valuations
A RICS survey, on the other hand is likely to be more realistic. That’s because it aims for a compromise market value that both seller and buyer should consider fair. Moreover a RICS valuator:
- Understands building construction and knows what to look for structurally
- Is also contractually bound to inspect three truly comparable properties
Furthermore, RICS surveyors’ reputations, and ongoing membership depends on them providing value for money. Remember this most important point. Their only interest in a subject property is valuing it accurately, and fairly.
Avery Associates is a niche Greater London business specialising in valuing estates for probate, and clearing homes of deceased persons for sale or tenanting. Please call 0800 567 7769, or 0208 640 00 44 if we may be able to assist.
An Avery Associates Review
I rarely write reviews but feel given the service I received from Avery Associates it would be appropriate. I was rather daunted at the prospect of dealing with the estate of my deceased uncle and having to organise probate property and contents valuation. Jeffrey had been recommended to me, so we instructed him from the beginning. He was polite, efficient and assisted us throughout the process. From providing the RICS valuations needed to satisfy HMRC and advising us how best to sell items of value, to clearing and cleaning the property of the remaining items – it was a first rate service. Many thanks again, J.v
