Knowledge Guides

What is a RICS valuation?

Posted April 5, 2024
What is a RICS valuation?

A RICS valuation gives you a true and detailed look at your property’s value. It considers the condition of your property, its location, and what’s happening in the market right now. This helps you get a clear understanding of what your property is really worth.

RICS surveyors are known for being fair and unbiased when they do valuations. They follow strict rules that stop any personal opinions from affecting their work. Their dedication to being neutral means you can trust their valuation to be an accurate reflection of your property’s market value.

Also, it’s key to know that only surveyors qualified by RICS can carry out these in-depth assessments. This qualification ensures that the person valuing your property has the needed expertise and follows high professional standards.

When would you need a RICS valuation?

Buying more shares in a shared ownership scheme

Having a RICS surveyor involved is crucial for the buyer to understand the property’s condition and value before they decide to buy more of it. Getting a professional survey report helps the buyer make a well-informed choice about increasing their share in a shared ownership property, considering things like how much maintenance it needs and its future selling price.

Selling a shared ownership property

When you’re selling a shared ownership property, getting a RICS valuation is key for many reasons. It makes sure the property’s value is accurate, meets rules and regulations, helps in talks with buyers, aids in getting mortgage approval, and offers legal safety for both sellers and buyers.

Buying or selling property

If you’re thinking about buying or selling, a RICS valuation tells you exactly how much the property should cost. It’s great for negotiating because it makes sure you don’t pay too much or sell for too little.

Mortgage and financing

When getting a mortgage, lenders often ask for a RICS valuation first. They want to check that they’re not lending more money than the property is worth. It’s also useful if you’re thinking about refinancing.

Tax planning and compliance

For taxes like capital gains tax or inheritance tax, an official property value might be needed. A RICS valuation meets all the rules and is accepted by tax offices, so it helps with peace of mind about following laws.

Insurance

To get the right insurance cover, knowing how much it would cost to rebuild your property is essential. A surveyor from RICS can figure this out so that your insurance covers what it needs without costing too much.

Dispute resolution and legal proceedings

During disagreements over properties’ values – maybe during divorce or business break-ups – having an impartial value from a RICS report can help solve things fairly in negotiations or court.

Investment analysis

Thinking about investing in property? A RICS report shows what return on investment you might expect by considering rental income potential and market growth.

Probate and estate planning

After someone dies, their property must be valued for probate correctly to sort out inheritance matters smoothly.

Summary

RICS valuations are far more significant than just a number on paper. They are fundamental to property valuation, combining precision, integrity, and global standards into an understandable report for various purposes in the property sector. 

Whether you’re looking to buy or sell, get a loan, sort out legal issues, or plan your estate, understanding RICS valuations is crucial. What sets RICS valuations apart is their commitment to international standards and the confidence they give to people, businesses, and lenders.

Each valuation comes from a chartered professional dedicated to delivering more than mere figures; they offer insights based on thorough analysis and unbiased views of the property.