Valuers have been advised that they may need to provide advice on the outlook of a property's value, as well as establishing the current market value, in the current economic climate.
Valuers have been advised that they may need to provide advice on the outlook of a property's value, as well as establishing the current market value, in the current economic climate.
The advice is one of the key recommendations of a valuation information alert published on Monday by the Royal Institution of Chartered Surveyors (RICS).
The valuation information alert sets out clear guidance on how to carry out loan security valuation reviews when values are changing rapidly. It is aimed at the commercial property market and will supplement and clarify the existing standards set out in the Red Book (RICS' Valuation Standards), RICS said in a press release.
In such situations a valuation can become out of date very rapidly and as a result a client, particularly a lender conducting a loan security review, may seek additional advice from the valuer. This is likely to focus not only upon the current market value, but also what it might be in the near future.
'This new advice, whilst emphasising that market value must always be at the centre of the valuation process, reminds valuers that the provision of valuation advice may not be just about a point in time assessment,' said Mark Gerold, chair of the RICS' Valuation Group Board.
