Avery Associates, specilists in all matters concerning valuations for probate give you our latest blog by Kieth Fraser (MRICS) who writes about the difficulties facing RICS registered valuers….
When valuing property according to the RICS ‘Red Book’, one of the most important components in arriving at a final valuation figure is to search for relevant comparable evidence.
Of course, this comes later, after a thorough inspection of the property, referencing of the lease, etc, if relevant.
Comparable evidence is vital to providing an accurate opinion as to value. Thus, if you are seeking a probate valuation, a capital gains tax valuation, or even a straightforward valuation for secured lending, it is essential, even a necessity, to provide some comparables. But when we talk of comparables, what do we mean? Do we mean, examples of property on the market? Of course not, as this would not be an indication of the market, which is all important.
What we mean is evidence of recent transactions of similar properties, of similar size, condition, location and transaction date etc.
So what happens if the property is unique or the market is slow, and there is a lack of comparable evidence? This prevents a problem, but one in which the skill of the valuer comes to the fore. The valuer will need to get evidence that even if not directly comparable, can be compared in some way/ ways, to the subject property being valued, and then use his skill and market knowledge, as well as extensive research, into taking an informed and professional view in arriving at an appropriate end value.
Should the matter be examined by the tax man, the bank or whoever brings the valuation under scrutiny, the skilled valuer will need to be able to justify his well thought out arguments and reasons, and ensure the valuation and his stance holds firm under close examination.
These are just some of the difficulties facing registered RICS valuers, but we will go into more, in subsequent blogs.
For more advice on property valuation call Jeffrey Avery on 0800 567 7769
