FAQs

Q. What is the difference between a valuer and a Building Surveyor?

A Surveyor specializes mostly in survey and building work and is more trained to carry out conditional even possibly structural surveys. A valuer is a professionally trained property specialist who values a wide range of properties for different purposes.

Q. What does a surveyor do?

Measures land and marks property boundaries. A building surveyor specifies on the survey and measurement of real estate. Surveyors are normally trained also to give opinions on property values and property legalities and specialist services.

Q. What does a Valuer do?

Property valuers assess the value of land, buildings and improvements and plant and machinery. They provide expert advice on matters under litigation and are recognized by courts as expert interpreters of the property market.

Valuers gather and analyze a range of property information such as sales to determine the values of comparable properties. A valuation is an assessment of the amount a property would sell for on a set date.

The valuation process is a complex one, involving continual reviews of data and an ongoing analysis of developments in the property market.

Valuations are used for:

• Setting limits for the sale and purchase of properties
• Setting rental levels (lease)
• Determining compensation following the compulsory acquisition of property
• Asset accounting and management (financial reporting)
• Lending and associated financial dealings (mortgages)
• Property settlements (divorce proceedings, deceased estates)
• Property rating and taxation systems
• Property portfolio analysis
• Determining rental issues when there is a dispute
• Providing expert witness evidence in Court.

Q. What is RICS?

RICS – The Royal Institution of Chartered Surveyors – is the pre-eminent organization of its kind in the world. As such, it represents everything that is good in the property profession. Its members offer the very best advice on a surprisingly diverse range of land, property, construction and related environmental issues. As part of its role, it helps to set, maintain and regulate standards. It also provide impartial advice to governments and policy-makers.

Q. What is a Mortgage Valuation?

A Mortgage Valuation is a report on the security of a property for financial lending guarantees and is the assessed market value of a property according to a qualified valuer to enable the lender to assess the amount of the mortgage loan they are prepared to offer.

Q. What is A Snagging?

The process of checking a new home for faults and other design shortcomings. Basically on inspection and survey of a property once developed before completion to check that the property being delivered is as per the purchase contract details.

Q. What is a Homebuyers Survey / Valuation Service?

A Homebuyer Survey and Valuation (HSV), also known as a Homebuyer’s Report, is a survey completed to a standard format set out by RICS – it’s most suitable for conventional properties built within the last 150 years, which are in reasonable condition.

It doesn’t detail every aspect of the property, and only focuses on urgent matters needing attention. It’s not usually suitable for properties in need of renovation, or if you’re planning major alterations.

An HSV includes details of:

• The general condition of the property
• Any major faults in accessible parts of the building that may affect the value
• Any urgent problems that need inspecting by a specialist before you sign a contract
• Results of tests for damp in the walls
• Damage to timbers – including woodworm or rot
• The condition of any damp-proofing, insulation and drainage (though drains aren’t tested)
• The estimated cost of rebuilding the property for insurance purposes
• The value of the property on the open market.

Q. What are the main 5 methods of Valuation?

Methods of Valuation

• The Comparison Method

Self-explanatory, always used where evidence is available. Compare similar properties, similar locations and attributes etc… to apply a comparative rate to the subject being valued.

• The Latent Value/Residual Method

This method is used for property where there is development potential and given assumption circumstances, the value of the land or land and buildings can be ascertained or the profit where the value of the land or land and buildings is known.

• The Profits Method

This produces a Market Rent to which the comparison and or investment method may be applied. It is used for business

premises which have a turnover and is essentially an analysis of the accounts to ascertain a notional fair Market Rent.
(Pubs, Grocery Stores etc)

• The Contractor's Method / Depreciated Replacement Cost

This method is used for types of property which seldom change hands and for which there are few comparisons. Churches, Power Stations, Schools Hospitals etc.

• The Investment Method

This method is used when there is an actual , notional or potential Market Rent. A market investment return yield is ascertained via the Comparison Method. This yield when divided into 100 provides a rent multiplier ( Years Purchase) to produce the capital Market Value.

Within this method there are;

1. Conventional investment Method (explained above)
2. Layer / Hardcore Method
3. Discounted Cash Flow Method
4. Net Present Value Method
5. Internal Rate of Return Method