February 2020
By Stephen Todd, co-founder, VAS Group
When it comes to selecting the right valuer for an application, big and small companies have many different attributes which need to be taken into consideration.
In literally every meeting I attend I am asked one quite simple question: how do you select the best valuer for every application? And as with all relatively simple questions, the answer is not that straightforward……
A typical example I put forward is that of a terraced house. It ultimately does not make sense to appoint a large multinational surveying practise as their fee would likely be too high, and the importance of such a relatively minor job would not be a priority.
On the other hand a local established firm, who have more experience in that specific location valuing that property type, will be totally au-fait with market conditions and can quickly turn around a solid report.
We then switch this example with a large mixed usage development scheme, and the logic turns on its head as experienced personal across a whole remit of property sector disciplines would be best placed to provide a comprehensive picture.
Horses for courses
Ultimately, when carrying out a valuation, you go through a very similar process no matter what the size of your firm. All loan security valuations are carried out in line with the RICS ‘red book’, which provides a minimum set of standards and content required in all reports.
In turn all valuations follow a very similar format in terms of reporting structure. The requirement for inspection, measurement, knowing the immediate area, due diligence, comparable collection data and various other information is part of the course.
But in short it is the type of property will likely dictate which firm carries out the valuation.
This is one of the biggest but most important challenges we face at VAS Panel, knowing the correct valuer to instruct for our lender clients is crucial to achieving the best advice, especially in a time critical environment.
We are very conscious that different sized valuation companies will treat valuation opportunities differently depending on their size. From my experience there are two key elements: a valuer’s availability; if they have a minimum fee level.
Are you experienced?
In my previous roles I have valued everything from largescale industrial units to shopping centres to residential, across both the UK and Europe for many high street and challenger banks and funds.
These have been more straightforward than valuing some secondary or tertiary properties that could be in a very poor state of repair, with little occupational demand and limited comparable sales to compare it to, especially in less urban areas. This is when experience and judgement is critical to getting the most accurate advice.
Working for a large multinational firm or a small independent practice has its different pros and cons, some surveyors enjoy being part of a national firm with the benefits, stability of workflow and opportunity to value some landmark buildings. However some valuers prefer being part of a smaller more local practise and being able to make decisions more easily with less red tape and perhaps more flexibility.
Choose wisely
Our VAS Panel valuation panel management service lists over 1,000 valuers working at well over 150 practices, all of whom can be researched and instructed based on location, deal type and value. Every day I get to meet fantastic, experienced and skilled valuers who enjoy all different aspects of the surveying world which determines what kind of firm they enjoy.
We are in an environment where good quality valuers are at a premium – I have been told by a leading voice of the industry that the average age of a valuer is nearly 60 years old – so there are many varied opportunities in the market.
Going back to the aforementioned meeting……
Once I’ve finished giving my answer and the glaze has gone from people’s eyes, the final advice is actually very simple: the correct valuer will ultimately protect both the lender and the client, do your research and choose wisely.