What is an RICS Registered Valuer?
Valuation is one of the key RICS member practices. Valuer Registration is the quality assurance mechanism that monitors all registered RICS members who carry out ‘Red Book’ valuations and ensures consistent standards.
By appointing a RICS Registered Valuer, you can be confident that you are working with regulated and qualified professionals who:
- Adhere to the ‘Red Book’ valuation standards – a global valuation standard
- Are committed to openness and transparency
- Follow a code of ethics
- Are experts in their field, delivering credible and high-quality reports.
Valuer Registration aims to ensure the quality of valuations, raise the credibility of valuers and provide clients with a clearly identifiable designation of international standards, quality, and the consistent application of ‘Red Book’ standards.
There are vast amounts of funds traded in Real Estate throughout the Cayman Islands and these all rely on Valuations. If a Valuation is inaccurate, it can cause all sorts of problems for lending institutions, as we saw in 2008 with many Banks becoming overleveraged.
Why are Valuations important?
Valuations are very important within the Property market as they provide an assurance to the purchaser that they are getting value for money in their transaction. If lending is involved, and in the majority of cases it is, be it a residential or commercial property, a Valuation is important to ensure that the price paid reflects the Market Value and therefore suitability for secured lending. It is the same if the valuer is preparing a valuation report for accountancy purposes or for financial reporting. If the valuation of the property is inaccurate, this will have an impact on the value of the company.
What is RICS Valuer Registration?
RICS Valuer Registration is a quality assurance product, that underpins the quality of the Valuation material produced by RICS members throughout the world. When a client obtains a valuation report, as long as it is prepared by an RICS Registered Valuer it will be written in conjunction with the standards of the Red Book and the international valuation standards, which is recognized worldwide. To become an RICS Registered Valuer, members must take a prerequisite degree course, and then a minimum of two years on the job training to ensure they have the competence and ability to provide accurate and high-level reporting. All of the surveyors at Plum are RICS Registered Valuers.
Why use an RICS Registered Valuer?
Rory Andrews, an RICS Registered Valuer at Plum, stated that the main purpose of the Red Book is to ensure transparency in the valuation process. “The standards & regulations demand an increasing justification of the figure the valuer arrives at, and that Valuations can only ever be assessments at a given point in time based on professional experience, market knowledge and economic awareness. We have seen over the course of 2020 & 2021 that there has been an increase in market uncertainty, and when conditions change – for example with COVID-19, property valuations can change too. Valuers are obliged to comment on valuation uncertainty in Red Book Valuation Reports and it is important that you are instructing an experienced professional to ensure the valuation is accurate”.
If you require a valuation for loan security purposes, tax purposes and financial reporting, please feel free to get in touch below:
Mobile: +1(345) 925-8897
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