Open Market & Red Book Valuation
Discussion
There's a handy explanation on this link, https://www.williamsellis.co.uk/blog/2015/9/10/wha...
In my experience the essence of it is the difference between an "educated guess" and a "carefully evaluated appraisal".
If you're looking at a road full of identical houses which sell on a regular basis then clearly it's pretty simple to find a good answer on either basis. However, it gets more complicated when looking at a piece of land, a piece of land with planning permission etc. One of the things that will definitely show up in a professional report is the work that's been done to find and assess "comparable" sales from the past, whether or not they are in the local area or of identical properties. Being a somewhat sceptical fellow I perceive the full reports as being a reasonably thorough and documented exercise - with an educated guess at the end!
In my experience the essence of it is the difference between an "educated guess" and a "carefully evaluated appraisal".
If you're looking at a road full of identical houses which sell on a regular basis then clearly it's pretty simple to find a good answer on either basis. However, it gets more complicated when looking at a piece of land, a piece of land with planning permission etc. One of the things that will definitely show up in a professional report is the work that's been done to find and assess "comparable" sales from the past, whether or not they are in the local area or of identical properties. Being a somewhat sceptical fellow I perceive the full reports as being a reasonably thorough and documented exercise - with an educated guess at the end!
A Red BookValuation is done by an RICS registered valuer and the value provided will likely be Market Value. This used to be known as Open Market Value and thus may be confused a bit with Open Market.
The valuation will be prepared in accordance with the RICS guidelines, referred to as the Red Book (because it's a book, which is red).
The valuation will be prepared in accordance with the RICS guidelines, referred to as the Red Book (because it's a book, which is red).
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