Understanding property valuations- expert insights from a chartered surveyor

Understanding a property’s true value requires expertise, precision, and a deep understanding of the regional market. Chartered surveyors have a blend of technical insight and market knowledge that ensures every valuation is comprehensive and accurate, giving you all the information you need to guide your next move.

As the most active valuers in the regional market of Hertfordshire and the surrounding areas, our valuation team draws on their extensive industry expertise to deliver a precise and comprehensive service, ensuring reliability and cost-efficiency.

What is property valuation? 

Property valuation is the process of estimating a property’s fair market value, for both commercial and residential properties.

Residential property valuation focuses on items such as:

• Layout
• Condition
• Location
• Parking
• Potential (to extend or renovate)
• Energy efficiency
• Amenities
• Market trends

Commercial property valuation focuses on items such as:

• Rental income
• Lease terms
• Occupancy rates
• Future earning potential and predicted ROI
• Location in the context of the business’ target customers
• Regulations
• Building specifications

Neither of the above lists are exhaustive and only scrape the surface of what chartered surveyors consider, due to the comprehensive, forensic and nuanced nature of property valuation.

Why enlisting a chartered surveyor is essential 

Engaging chartered surveyors in your property valuation is not only critical for making informed financial decisions, but also for navigating through an often-complex legal landscape.

Adhering to strict standards such as the RICS Valuation- Global Standards (also known as the RICS Red Book), is imperative for ensuring valuations are accurate, ethical and reliable.

A chartered surveyor assesses not just a property’s physical characteristics but its broader context, such as how it fits into the market, how it meets the needs of owners or tenants, and how external factors might influence its value. This ensures that clients gain not just a generic valuation, but actionable insights tailored to their unique circumstances.

Every single member of our valuation team is a qualified chartered surveyor and RICS Registered Valuer, therefore ensuring the highest standards of quality are maintained across all our instructions.

How long does a property valuation take?

The time required for a property valuation depends on the property’s type, size, and complexity. For a straightforward residential valuation, an on-site inspection typically takes under an hour, followed by several days of research and report preparation. In most cases, the process can take from a few days to a week.

For commercial properties or more complex residential valuations, such as development appraisals, the process can take a few weeks. These valuations often involve more detailed analysis, including market trends and earning potential, sometimes requiring input from specialists.

Urgent cases may be expedited, but a thorough process is essential for trustworthy results.

What does a property valuation involve? 

• Inspection: Chartered surveyors conduct a thorough on-site inspection to assess layout, condition, and unique features. For residential properties, this includes identifying repairs or upgrades that could affect value. For commercial properties, they consider structural integrity, tenant needs, and functionality.
• Market analysis: Surveyors delve into local market trends, reviewing comparable sales or leases, economic conditions, and income potential. For commercial properties, techniques like the income approach help estimate future earnings, adding a forward-looking dimension to the valuation.
• Report preparation: After collating their findings, surveyors create a comprehensive report. This includes a clear valuation figure, the methods used, and tailored recommendations.
• Quality assurance: To maintain their high standards, chartered surveyors subject valuation reports to rigorous peer reviews and compliance checks. This ensures that every report is precise and reliable. For instance, every one of our valuations is subject to peer review and dual signature, including that of at least one partner.

The need for specialist property valuations 

Not every property valuation is the same; all instructions will have different requirements and unique motivations. Chartered surveyors offer specialised services to address diverse requirements. These could include:

• Asset valuations: This involves working closely with accountants and pension funds to provide up to date property valuations to ensure their accounting and reporting is accurate.
• Development appraisals: Across both residential and commercial sectors, the valuer guides developers by assessing market value and project costs. They provide expert guidance on cost appraisal and project monitoring. At Brasier Freeth, we have extensive experience across local authorities and housing associations, advising on Viability Testing for affordable housing, as well as CIL and Section 106 costs.
• Legal disputes: Chartered surveyors are critical in providing unbiased valuations to support fair outcomes in legal disputes, such as restrictive covenants and marital proceedings. Our services include providing expert witness valuation advice, and the provision of Single Joint Expert reports for legal proceedings.
• Lease extensions: Expert advice is crucial for leaseholders aiming to secure favorable terms in changing markets. Leaseholders have the right to extend their leases by 90 years, so it is essential for those with leases nearing 80 years remaining to seek expert valuers to represent their interests. Our service also includes the handling of negotiations and guidance throughout the tribunal process.
• Loan security: Chartered surveyors offer banks dependable valuations to back up their lending decisions with tangible evidence. Our own valuation team is on the panel of several prominent high street banks, due to our in-depth and varied knowledge across regional markets.

The chartered surveyor’s perspective 

At Brasier Freeth, our chartered surveyors bring invaluable insight and objectivity to property valuation. There are a diverse range of reasons why someone would seek out a property valuation; it’s the role of the Chartered Surveyor to understand these motivations and tailor their service accordingly.

On any given instruction, we could be working with:

• Landlords looking to evaluate their rental potential or dispose of their property asset for a leading rate
• Commercial tenants seeking to negotiate favourable lease terms
• Pension funds and investors aiming to establish market values for properties in their portfolios
• Homeowners who want to determine market values for a profitable sale
• Potential buyers checking that they’re paying a fair price for their property
• Developers who need to appraise their land or properties during the planning stages

This list goes on.

Our expert understanding of economic shifts, regulatory changes and evolving buyer preferences ensure we are prepared and ready to help any client navigate the market’s complexities.

Whether it’s a family home, a commercial investment, or a development project, our team is here to equip you with the guidance and confidence you need to achieve your goals. Get in touch for expert residential or commercial property valuation