Now RICS has moved a step further by pulling together all issues in a best practice Guidance Note which will provide valuers with the foundations to undertake with confidence, the valuation of new-build properties.
The guidance also puts into context new-build valuations in the wider economic environment emphasising the relevance of the guidance to all market conditions, both in the heady days of a boom and the gloomy days of a recession.
The note stresses the need for valuers to differentiate between the new-build premium – that portion of the price paid which will evaporate as soon as a newly-built property is occupied – and those value-adding factors (such as better building materials, enhanced insulation levels, or more efficient heating systems) which are intrinsic to a new property and which will remain when the home is sold.
RICS spokesman Barry Hall said: "All parts of the property industry are in agreement that standards must be maintained and this guidance note will provide the foundations stones for valuers working in the new-build market. Developers and lenders agree that raising standards in the profession will benefit business and the consumer."
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