Valuers
The role of a valuer
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 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.
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.
Benefits and opportunities in collaborating to share data
There are many benefits to sharing data with valuers in the early stages and throughout the buying and selling process, these include:
Greater transparency
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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.
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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
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By accessing the data up front, the Valuer can provide an accurate valuation more quickly.
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Digital survey data and Material Information incorporated into the valuation will reduce post valuation queries.
Better outcomes
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Greater protection against fraud and money laundering, less waste on declined applications and transactions falling through.
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Improved understanding of the process and products.
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Improved conversion and completion rates.
What data does a valuer need ?
A Valuer would benefit from a range of data to support their service, including:
• Accommodation (rooms and usage)
• Any Property Linked Finance/Non-recourse loans
• Boundary information
• Council tax band
• Energy Performance Certificate (EPC)
• External Wall Fire Review (EWS1) or Fire Risk Appraisal of External Walls (FRAEW), if applicable
• Property Risk
• Property Type
• Relevant information if a Buy to Let transaction for a landlord
• Tenure and title information
Data sources
A conveyancing lawyer 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 more digital data
The increased sharing of digital data will have many positive impacts, including:
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
The current process
Process flow to exchange of contracts
Below are the key stages and activities in a property transactions related to the Valuer:
Upfront Information
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Review Seller ID
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Property Logbook
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Assess and advise on pre-marketing inspections/surveyor, search data
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Title and seller information
Viewing
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Review Material Information
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Mortgage in principle
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Proof of funds and Buyer ID
Offer Made
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Mortgage application
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Contract pack
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Valuation
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Survey (where advised)
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Due diligence
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Enquiry of specifics relevant to the buyer and their lender