| Valuations |
| Valuations may
be carried out for a number of reasons but (notoriously) often initiated by
Death, Debt or Divorce. They are often required for a proposed property
purchase (or for lending security) and may form part of a survey report.
A valuation is a formal written document which takes into account the
location of the property, its age and condition, and any other relevant
factors. Fees will vary depending on the complexity of the job, the value of the property and the associated liability to the valuer. How is Value defined? Valuation standards and guidance on most aspects of valuation is given in the RICS Appraisal and Valuation Manual, known in the profession as the 'Red Book'. There are a number of alternative valuation bases, but the most common is ‘Market Value'. For a full definition of this, or alternative methods of valuation, please make an on-line enquiry. Insurance valuations Many people are confused about what is an insurance valuation. It relates to the cost of reinstating the property, for example in the case of fire, and must cover the cost of re-building, demolition, site clearance, architects’ and other professional fees. It does not bear any direct relation to market value, and although usually less, can on occasions be substantially more. The RICS Building Cost Information Service provide a free online house building cost calculator - click here to view |
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