What is a Red Book Valuation and Do I Need One for My Property?

When you are navigating your way through the process of buying a house it is possible that you will hear lawyers, banks, valuers and other experts who evaluate the value of property according to the Red Book valuation. If you’ve ever thought about what it is and when you’ll require it, continue reading.

What is an Red Book valuation?

The Red Book – otherwise known as the RICS Valuation Global Standards are published from the Royal Institute of Chartered Surveyors and provides the required rules and best practices recommendations for RICS members that provide valuation services. The Red Book is revised every 2 to 3 years, with the most recent edition coming into effective on January 31, 2020.

Although it doesn’t set out the methods to be employed however, the Red Book does set out the guidelines that valuers must adhere to. It is a guideline for ethics as well as obligation of care valuation report’s qualification, as well as the content that should be included in the report on valuation.

Who is qualified to do it?

In order for a valuation to qualify as classified as a Red Book valuation, it is required to be carried out by an RICS certified surveyor, who’s part of the Valuation Registration scheme. It must also be a quality control and risk monitoring program that ensures the compliance of RICS Red Book. RICS Red Book. The valuation must also adhere to the rules and guidelines that are stated.

What is the best time to get one?

Red Book valuations can be provided by institutions including mortgage lenders and banks. Additionally the Red Book valuation is often demanded by solicitors or accountant when formal legal processes and tax computations are in play, like in property disputes or a share ownership purchase, divorce proceeding, as part of accounting for company dissolution, partnership dissolution, or a mandatory purchase. Assuring that proper procedures have been followed , and the valuation is able to be able to withstand any scrutiny. HMRC will often require more complicated capital gains and the tax returns for inheritance are supported by the Red Book valuation of the assets included.

The advantages of the Red Book valuation

Red Book valuation Red Book valuation is designed to ensure that high standard are met throughout the entire valuation procedure, from the initial inspection until presentation. It is the Red Book is recognised globally as one of the most stringent appraisal criteria.

In the event of the Red Book Valuation, the valuation report’s quality and qualifications as well as the information in the valuation report is assured. Thus, the client is assured of receiving an appropriately conducted valuation by a qualified and unbiased valuer. Furthermore the final report will be in line with an established set of established and accepted guidelines.

It’s also built to withstand the years of use, so it is possible to refer to in the event of need for instance, if historic data are required for probate.

Does a mortgage appraisal follow Red Book guidelines?

A mortgage valuation is the lender asking an expert to evaluate the property in order to determine if they are willing to lend the amount demanded. Each lender has their own set of criteria, but they all adhere to the same guidelines. They will not reveal the results of their valuation and that’s why it is recommended to conduct your own appraisal and survey.