Professionals who assess the value of properties and land have to work within strict professional standards set by the RICS (Royal Institution of Chartered Surveyors) – the publication that covers these valuations standards is known in the industry as the “Red Book”.
So if you have ever heard a surveyor talk about the Red Book and wondered what they meant by this, they are referring to the best practice guidelines and rules of professional valuation services
When would you need a Red Book Valuation?
There are lots of circumstances when a Red Book valuation might be needed. Essentially any time you need a formal valuation for tax purposes or legal proceedings, that valuation must be carried out by an RICS registered valuer acting in line with Red Book standards.
This might include valuations for: –
- Tax planning purposes
- Calculating probate or Capital Gains Tax
- Self-Invested Personal Pensions (SIPP)
- Properties being sold (or purchased) by charities (as set out in the Charities Act)
- Divorce proceedings or other Court proceedings
- Disputes being resolved through mediation or arbitration
- Loan purposes
The Red Book valuation can also be helpful for mediation and other negotiations.
What is involved in a Red Book valuation?
In simple terms, a Red Book valuation involves an RICS registered valuer assessing the property and providing a formal report on the current market value of the property. To help calculate the market value, the valuer would need to look at three comparable properties that have recently been sold in the same or similar area.
Valuations are generally valid for three months, but they can be extended in some circumstances.
The mark of quality for your property valuation
When you work with an RICS registered valuer, you can be sure you are getting a high-quality valuation that adheres to strict Red Book standards. In other words, you are getting a professional, accurate and honest valuation – a valuation that you can trust. Think of it as a seal of approval or quality mark for your property valuation.
At Luscombe Maye, our RICS registered valuers provide formal Red Book valuations for a range of different purposes and properties, for residential, agricultural and commercial clients, so if you need a professional valuation you can talk to Luscombe Maye about our Red Book valuation services.
For more information regarding valuations please contact us on 01364 646170.
