Getting a property valuation right is key to any investment as it impacts on overall return on investment. However, valuation of property is notoriously subjective and it is important to understand the assumptions used when making such predictions.
To help increase the accuracy of any valuation, Property Moose takes a two stage approach to property valuations – reducing dependency on one source and providing greater transparency to investors.
Stage 1 – Internal Valuation
Our internal property investment team first conducts an internal review of any properties that are considered for listing on the platform. Stuart Pooley, our Property Director, heads up the team and has over 30 years experience in the property investment world and has managed well over £300 million of property sales to date.
Where we do not have RICS valuation any projection of property values are based on our internal valuation where we use an array of data sources including:
- Historic Sold Prices
What is a RICS survey?
- Current Market Sale Prices
- Market trends
- House Price Indices
- Market Confidence Reports
- Local Agent Valuations
Stage 2 – RICS Valuation
Every property that is purchased by a Property Moose SPV will have a RICS valuation. If we have this RICS valuation before listing, the projected current property value will be that of the RICS. For those properties that do not have a RICS at the time of listing, we will arrange for a valuation to be made before we purchase the property using one of our local partners.
Only when a RICS comes back at or above the displayed projected market value for an investment, will we go ahead and complete the purchase. If the RICS comes in below the displayed projected market value, all investors will be contacted to decide if they want to proceed with the investment.
