Are agents experiencing any increase in uncertain valuations in the wake of the Brexit vote and do you consider them to be down valuations?
The RICS has published advice on its website to members about valuations post-Brexit.
It strongly implies that surveyors may be in danger of stating too high a price in their valuation reports.
It suggests a form of wording which essentially advises customers that the valuation may not be reliable as the “probability” of that price being achieved in the event of a sale “has reduced”.
UK valuation director Fiona Haggett is advising that surveyors add the cautionary note to their reports for clients.
On the RICS website, she suggests this form of wording: “Following the EU referendum held on 23 June 2016 concerning the UK’s membership of the EU, a decision was taken to exit.
“We are now in a period of uncertainty in relation to many factors that impact the property investment and letting markets.
“Since the referendum date it has not been possible to gauge the effect of this decision by reference to transactions in the market place. The probability of our opinion of value exactly coinciding with the price achieved, were there to be a sale, has reduced.
“We would, therefore, recommend that the valuation is kept under regular review and that specific market advice is obtained should you wish to effect a disposal.”
The advice appears to be aimed at reports only for members of the public, rather than valuation reports for lenders.
But are surveyors erring on the side of caution, in agents’ experience?
NAEA managing director Mark Hayward told EYE that he has not heard anything about an increase in down valuations since the Leave vote.
He said he was hearing about them earlier in the year when the market was moving quickly in some areas, and comparable figures were historic, not reflecting current prices.
Meanwhile, a story on This is Money could be telling.
A couple remortgaging their home believed it was worth £420,000 after finding the similar but smaller property opposite their home was listed on Zoopla at £425,000..
Nationwide did a desktop valuation on July 1 and valued the property at £395,000.
Checking Zoopla again, the asking price of the house opposite had also dropped, to £395,000.