When do you need a Red Book valuation?
A Red Book valuation is formal opinion of value carried out by a RICS Registered Valuer, acting in line with Red Book standards. Valuations may be needed in several situations. They can be needed any time you need a formal valuation for matters such legal or tax proceedings. Examples include; valuations for Tax planning purposes, Calculating probate, or Capital Gains Tax, Properties being sold by charities (as set out in the Charities Act) and more.
What is a Property Valuation Report?
A house or property valuation report is an estimate of a property’s true value in the current market. This is often called a market valuation. A RICS registered valuer will carry out an inspection of the entire home while following the strict RICS guidelines to calculate an accurate figure. Any market valuation report will provide a brief detail of a home’s overall condition and how it is built. It will also describe the location and size of the property. Some of the key considerations that are considered include:
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Number of bedrooms
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The size of the property
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The general condition
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Location and proximity to amenities and public transport
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Any parking including allocated or communal
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Any outside space such as gardens, balconies etc
Red Book Valuation vs Market Value
A market value is an estimate, usually provided by estate agents, given on basic information and used to sell their services. This can often lead to difference between a market value and a Red Book valuation.
For a Red Book Valuation, the surveyor must use his experience and knowledge to provide a clear and justified valuation report that is understood. A valuer will carry out a thorough inspection of the property and analysis of data to produce the valuation.
Charities Act Valuation
If you are a registered charity and are planning to sell a property or asset the trustees are required to obtain a Red Book valuation under The Charities Act 2011. It must be provided by a RICS Registered valuer, and the valuation must include the current market value, any advice on the most appropriate method of sale and whether the charity needs to carry out any works prior to marketing the asset. The surveyor’s advice will provide consideration on the best way to dispose of the property.