What is a RICS valuation?

justjohn

We have home reports in Scotland by law. Unsure of the situation in England.

The home report states the valuation of the property, However i would say 98% of all houses never sell for that and can be 10-30% below. Many properties staying on the market for 1 year plus.

How can a bank be expected to give a loan on a house when a valuation is 10-30% out?

And does the "rics red book" not stop this situation?

There are many houses in my area were you can see the valuation is 20% above the last sale price of an adjacent property.

geneer

They tried to bring single seller survey in down south, but the mewling of the VIs and lobbyists get the tories to pull the most important parts of it.

justjohn

pile of carp anyway, they except no responsibility for any info in the HIP pack and advise you too verify everything and anything contained in it.

Even the valuation is now carp as it no longer seems too reflect the market price.

However i do not understand how the "Rics red book" does not minimize the inaccuracy's of valuations.

daveyjp

Red book is guidance on the appropriate valuation method to use and approach to be taken, it does not provide details on how to value.

justjohn

yes i relise that however ...think there is something wrong with the method when the end valuation can be so far out.