How do we value your property?
To calculate the value of your property, a valuer (who is a registered RICS Valuer) uses comparable evidence to assess the value of the property, if sold on the open market at a given date.
Comparable evidence is applicable for all types of land and buildings used for commercial, industrial, residential and agricultural purposes.
What is comparable evidence?
Comparable evidence comprises a set of properties that have transacted (sold or are under offer) and which are used in support of a valuation
How is it used in the valuation process?
The valuer should ensure the comparables are:
- Comprehensive i.e. ideally, a minimum of three comparables is required.
- The comparables should be similar to the subject property in terms of their location and size. Ideally, they should be situated within 1 mile of the property unless the valuation is on a property in a city centre, such as St Albans or London, then they should be much closer. However, if the property is situated within the rural or village setting then the comparables could be significantly further than 1 mile.
- The comparables should be relatively recent so that they are representative of the current market. Ideally, the transaction should have taken place within 8 months.
- The comparables should be verifiable i.e. via land registry or an bonafide estate agent or specialist web based valuation site such as Lonres or Rightmove Plus.
- Consistent with local market practice.
The valuer assembles an adequate number of transactions, researches the circumstances behind them and tests their comparability using knowledge and experience of the market to analyse the available transaction evidence. The comparable evidence is then also adjusted to take into consideration any variances between the comparable and subject property. Then after full consideration the surveyor arrives at his valuation.
More advice in respect of valuations is provided on our website or please feel free to contact us to discuss your requirements.