Valuers

The valuer is the person who values the property on behalf of the lender or buyer, in many cases with a physical property inspection.

Lenders also use Automated Valuation Models (AVMs) where there is no physical inspection or involvement by an independent, Royal Institution of Chartered Surveyors (RICS) registered valuer.

Listed price vs mortgage vs survey

The term valuation is widely used, and can be misunderstood, as part of the home buying and selling process.

The price the property is listed for sale does not represent an independent valuation and will be based on the agent's knowledge and experience.

If a mortgage is required, the lender will generate a mortgage valuation. This may or may not involve a RICS registered valuer or physical inspection of the property.

A buyer can commission a physical property survey, available at different levels which can optionally include an independent valuation by an RICS registered valuer. It informs buyer about condition related matters that may affect their decision to buy, or price they are willing to pay.

Process flow to completion

When recommended practice is followed, these are the key stages in a property transaction involving conveyancing lawyers and the main activities they are involved in

Upfront information

Title and seller information

Offer made

Valuation

Rules and Regulations

The following rules and regulations apply to valuers

A Registered Valuer adheres to the RICS Valuation – Global Standards (The Red Book), the RICS Valuation – UK National Supplement and the RICS Residential Property Valuation for Owner Occupation Professional Standard. These are the pre-eminent residential valuation specific documents in this space.

Additionally, there is a wider suite of RICS residential valuation related standards: RICS Professional Standards.

Every property is different, and so the valuation approach will vary according to the age, type, location, construction, condition, and history of that individual property, as well as the requirements and instructions of the firm or individual commissioning the valuation.

What data does a valuer need?

A vauer would benefit from a range of data to support their service, including

Personal details

Any Property Linked Finance / Non-recourse loans
Relevant information for a landlord in a Buy to Let transaction

Property details

Accommodation (rooms and usage)
Boundary information
Council tax band
Energy Performance Certificate (EPC)
External Wall Fire Review (EWS1) or Fire Risk Appraisal of External Walls (FRAEW), where applicable
Property risk information
Property type
Tenure and title information

Glossary of terms

Data sources

A valuer can obtain data from a variety of sources, including

Direct from the relevant authority

Reviewing Material Information on the property advert

Asking the customer

Receiving Information from technology systems either directly or shared by others in the process

Freely available open-source data

Sharing data

The following information obtained by the valuer could then be shared with other stakeholders for their benefit.

Estate agents are legally required to provide information that would be material to an average consumer, and sellers have a legal requirement not to misrepresent facts about their property

The lender will require much of the data to decide whether the property is within their lending policy requirements

Conveyancing lawyers will need the data to advise the lender, seller and buyer on the nature of the property

Benefits and opportunities in collaborating
to share data

Sharing data early and throughout the buying and selling process offers valuers a range of benefits, including

Greater transparency

Upfront information means valuers and lenders can identify the type of valuation suitable for the property and the need for some level of physical inspection.
By seeing the Material Information relevant to the property, valuers can value the property based on the facts and removing or minimising the need for any assumptions surrounding any characteristics of the property.

Faster
certainty

By accessing the data up front, the valuer can provide an accurate valuation more quickly.
Digital survey data and Material Information incorporated into the valuation will reduce post valuation queries.

Better
outcomes

Greater protection against fraud and money laundering, less waste on declined applications and transactions falling through.
Improved understanding of the process and products.
Improved conversion and completion rates.