Professionals who assess the value of properties and land have to work within strict professional standards set by RICS, the Royal Institution of Chartered Surveyors – and the publication that covers these valuation standards is known in the industry as the ‘Red Book’.
So if you’ve ever heard a surveyor talk about the Red Book, and wondered what on earth they meant, they’re referring to the best practice guidelines and rules for 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 done by a RICS Registered Valuer, acting in line with Red Book standards.
This might include valuations for:
- Tax planning purposes
- Calculating probate, or Capital Gains Tax
- Transferring assets into a SIPP pension fund
- Properties being sold by charities (as set out in the Charities Act)
- Divorce proceedings, or other court proceedings
- Disputes being resolved through mediation or arbitration
A Red Book valuation can also be helpful for rent reviews and other negotiations.
What’s involved in a Red Book valuation?
In simple terms, a Red Book valuation involves a RICS Registered Valuer assessing the property and providing a formal report on the current market value of the property. To help calculate this market value, the valuer will look at three comparable properties that have recently been sold in the same or similar area.
The valuation is generally valid for three months, but it can be extended in some circumstances.
The mark of quality for your property valuation
When you work with a RICS Registered Valuer, you can be sure you’re getting a high-quality valuation that adheres to strict Red Book standards. In other words, you’re 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 Perry Hill Chartered Surveyors, our RICS Registered Valuers provide formal Red Book valuations for a range of different purposes and properties, for both residential and commercial clients. So if you need a valuation you can trust, talk to Perry Hill about our expert Red Book valuation services.