HTB RICS valuation

maveli

Does anyone know what method is used for RICS valuation? Is it based on square feet or is it based on number of rooms? Say for example my next door house is a 4 bed detached bought for 360K and recently sold for 480K. My house is also 4 bed with an extra living room and around 60 square feet more than the other house. and bought for 530K  The other house appreciated by around 30%. Does this mean the RICS surveyor value my house with 30% higher price?

 Thanks 
m

Bigphil1474

No, I don't think you can say your house will have appreciated by 30%, Were the 2 houses bought for those prices at the same time or months/years apart? The price will go up some times, may fall some times, so if one was bought at the peak of the market and the other at a slump, you can't compare.

I would suspect they would look at the neighbour house recently selling for £480k as part of the valuation of yours and add on what they think the additional size/space in your property is worth. All other things being equal (condition etc.). It's difficult to say, but at least a RICS valuation is better than the EA ones. 

mexican_dave

House valuation is a "dark art".
I am guessing you are wondering what your house is worth, but you haven't actually gone "to market"? Remember the market is always right!
Just to add, you can add an extension on a property and gain nothing on the value, because you have reached the price cap for that area. Or to put it more crudely you can put lip-sick on a pig, but it's still a pig! No offence meant toward your property.

Hoenir

The RICS surveyor will have their pulse on all the local activity. What similar properties have recently sold for, what offers have just been accepted, what current demand is like, etc etc. Will enable them to price your property reasonably well.  

maveli

I had my valuation done and it came to £560k, 20k more than original price. So I have to pay 4k extra. Not bad for having 108K from HTB for past 5 years. But now if I add to this to my mortgage, the lowest interest rate I get is 4.25 % compared to 1.75% if I stay with HTB. I can’t take a decision in which is the best option? Could anyone share their thoughts on this please?

chanz4

maveli said:

I had my valuation done and it came to £560k, 20k more than original price. So I have to pay 4k extra. Not bad for having 108K from HTB for past 5 years. But now if I add to this to my mortgage, the lowest interest rate I get is 4.25 % compared to 1.75% if I stay with HTB. I can’t take a decision in which is the best option? Could anyone share their thoughts on this please?

I would keep it