How Does The RICS Property Valuation Work

How Does The RICS Property Valuation Work

As a rule, real estate agents carry out several steps for the property valuation. After a detailed inventory, the value is calculated on a broad database.

The collection of object data

In the first step of the rics property valuation, all information and data on the property must be compiled. These include the year of construction, the energetic condition according to the energy certificate, the location and size, and the equipment of the property.

These preparations are necessary so that the broker can use the property data to draw up suitable comparative prices.

Property Appraisal

For a qualified rics property valuation, the assessment of the condition of the property on-site is essential. During the site visit, the property is appraised by an expert. The broker can not only get an idea of ​​the size, architecture, and layout of the property, but above all he can assess the essential features for the rics property valuation.

First, he determines which characteristics of the apartment or house exist and whether they affect the value. Furthermore, the value-relevant features are checked, i.e. their condition, their defects, or the need for renovation are assessed. All results are logged and, if necessary, photographed.

Market Analysis

The real estate agent can analyze the market for the specific property based on the object data collected and the value-relevant characteristics determined during the appraisal. This requires current key figures of the real estate market.

On the one hand, brokers can access the properties they have marketed themselves, and on the other hand, they have access to various real estate databases. This allows you to carry out your own market analysis for the location of your property. The developments in the regional and national real estate market are also relevant for this.

Real estate agents use various market reports, market research data, and purchase price collections from expert committees as sources for current market data. They usually have access to data that is not publicly available and are therefore best qualified for rics property valuation.

Property Value Calculation

A professional broker knows different methods of calculation, which estimate the market value of the individual property.

Compared to the complex legal procedures, the calculation of the market value is carried out using a simplified method, which takes into account all the essential characteristics of the property. When it comes to the income from a property, the net income from the building can be multiplied by a factor that depends on the type of property and its properties.

In the same way as the comparative value method standardized by law, a mean value is formed for an intended sale based on comparable properties, which is then corrected using surcharges and discounts. Most experts are of the opinion that at least ten comparative properties should be used to determine the market value for a well-founded rics property valuation.

Some brokers also work with tested real estate software, whereby the evaluation of individual value-influencing characteristics of the property also depends on the broker's experience. An individual market value report can be created to prove and present the determined value to prospective buyers. It summarises the results of the rics property valuation and presents them in a way that is easy to understand.

Taylor Chartered Survey Can Help you find the best property with the care of all property Valuations near Essex.

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