Residential Property Appraisal
Volume 1 - Valuation and Law
Chris Rispin, Fiona Haggett, Carrie de Silva, Phil Parnham, Larry Russen
- 172 pages
- English
- ePUB (mobile friendly)
- Available on iOS & Android
Residential Property Appraisal
Volume 1 - Valuation and Law
Chris Rispin, Fiona Haggett, Carrie de Silva, Phil Parnham, Larry Russen
About This Book
Residential Property Appraisal, Volumes 1 and 2 are essential handbooks not only for students studying surveying but also for surveyors and others involved in the appraisal of residential property.
Volume 1 has been updated and covers the valuation process as it relates to residential properties, particularly when valuation is undertaken for secured lending purposes. It addresses the basic skills required, the risks posed in a valuation, the key drivers of value, emerging issues that impact valuation and the key legal and RICS Regulatory considerations that a valuer needs to understand.
Volume 2 of the book goes on to address the inspection and survey of residential properties, covering new technology, modern methods of construction, problem plants and pests, damp in new builds, and modern building services. New challenges for the surveyor to consider include the health and well-being of building occupants, the Party Wall etc. Act 1996 and schedules of condition, energy and building performance, and owner-occupied and tenanted properties.
An essential book for students studying to enter the residential survey and valuation profession and for existing practitioners who wish to improve their knowledge of industry practices.
Frequently asked questions
Information
1Introduction
1.1 Context
- continuing government intervention in the property market, as it seeks to make home buying easier and more affordable;
- a drive to address housing shortages through increased house building targets and new construction techniques;
- various changes to the regulatory and professional support provided by the Royal Institution of Chartered Surveyors (RICS) and the potential rise of competing trade bodies;
- the increasing pace of technological advances that has seen Big Data playing a greater role in the industry and the large software suppliers becoming more influential players in the market;
- ever-increasing consumer standards driving a more litigious industry, where the profession needs to respond with a quality service or succumb to rising insurance costs.
- The focus of the knowledge and experience of many professionally qualified surveyors has been closely associated with the valuation of property, and not just its physical state. On the other hand, the building surveyor or other similar qualified professionalâs focus is on the property. Few courses have catered for the equal combination of skills.
- Many educational courses lack a sound technical grounding. The professional institutions often call for broader, more flexible surveyors armed with business and commercial skills. As a consequence, a number of traditional disciplines have disappeared from the curricula. Building studies and building defects are two such subjects for the residential practitioner.
- Technical advice and guidance that are currently published have a broad audience. A lot of the literature is specifically written for those who carry out in-depth surveys and investigations of residential property. It is often difficult to identify which part of this advice is best suited to the professional practice of residential valuation and appraisal.
- The structural changes within many lenders have resulted in different business priorities. New technology has revealed opportunities not previously available and exposed different working practices abroad that could be imported for use in this country. The structure of the residential market in countries like the USA, Australia and New Zealand is much less complex and uncertain. As the global economy has a greater influence on the domestic market and more financial institutions operate internationally, pressure will be applied to simplify the process.
- Customer expectations are changing. The typical âcustomerâ is becoming far more sophisticated. They are better educated and used to more customer-focused service in the other products they purchase. Evidence from consumer surveys, media sources and pressure groups suggest that the standard of service that many surveyors provide continues to fall well below current expectations.
1.2 Objectives of the book
- to provide surveyors with sufficient practical and detailed information so that those matters that materially affect the value of residential dwellings can be appropriately assessed. In this case âappropriatelyâ would equate to the standard currently expected of the Mortgage Valuation, although we also cover some of the other forms of residential valuation at a high level;
- to help surveyors further develop the skills of report writing and communicating the results of these assessments to their customers;
- to provide an overview of the valuation process with a particular emphasis on how the condition of a property and a multitude of other matters such as environmental impacts affect its value;
- to highlight the changing nature of the residential property appraisal process and initially identify some of the techniques and mechanisms that may help surveyors adapt to this changing environment;
- to reflect the important role that land and property law plays in assessing the value of an interest in property, and this will feature significantly.
1.3 Definitions
- Customer or clientâIn this book, these two terms are used to describe the end user of any survey or inspection report and this person will usually be a private individual.
- Residential appraisalâAn act or process of estimating the value, worth or quality of a residential property.
- Residential propertyâAny property that is used as, or is suitable for use as, a residence. This book is restricted to single domestic dwellings owned by individuals, rather than a corporate entity.
- SurveyorsâThis generic term has been used to describe chartered surveyors or other suitably qualified practitioners.
1.4 Who this book is for
- the reader has already satisfied, or is close to satisfying, the academic requirements of their chosen professional institution. This would have included a course of study that introduced participants into how dwellings are designed and constructed and the principal agents responsible for the deterioration of the building fabric.
- the reader has had some professional experience of assessing a range of different properties.
- student general practice surveyors in the later stages of their academic course or on the sandwich placement or year-out stage;
- building surveyors who are looking for an introduction to the assessment of residential properties;
- students on courses of a more specialised technical nature who need an understanding of how to carry out an appraisal of residential property;
- surveyors who are working towards their professional assessment and need to refer to written guidance and technical information on a regular basis;
- those more experienced surveyors who may be changing their professional emphasis towards residential valuation;
- qualified and experienced surveyors who need to carry around a source of reference so they can refer to standard guidance when novel or unusual situations are encountered.
1.5 The philosophy of the book
- to outline processes and techniques that may potentially take the surveyor beyond the parameters of current standard valuations. This will enable surveyors to more effectively provide those services and better cope with any changes to standard practice in the future.
- to engage with the surveying process and positively advise clients about the suitability of the price for their potential new home.
1.6 Contents of the book
- Volume 1 starts with an overview of the valuation process itself. Particular emphasis is placed on the role of the condition of the property in determining value. Volume I then moves on to cover the principal elements of law as they affect the property professional.
- Volume 2 covers all the defects normally associated with residential property and outlines a strategy to resolve these problems. In addition, it gives practical guidance relating to good practice in report writing. This includes a number of case studies to illustrate both good and bad practices.