What’s a RICS Valuation got to do with auctions-?

'The role of the valuer is to interpret the market at a given time, not to
follow the market or to be ahead of it'' (Paul Wolfenden)

In my experience many buyers obtain RICS valuation prior to auctions assuming
that the hammer will fall somewhere close to the valuation figure. This view
would be logical but, within the room ,as you  know, anything can happen.

Post auction buyers tend to use alternative methods of finance or utilise their
cash with a view of refinancing after development hoping to get most or all of
their funds back. Fair enough.  However, the risk is that valuers will base
their opinion objectively upon 'current market conditions' falling short of your
expectations. ....Problem?

The valuer will  look at the  prevailing micro and macro economics in addition
to qualified comparable/s and not just your work of art. Its been known that
some valuations have set at the price paid at auction! This is an extreme
example but has been known to happen. Its their 'opinion' after all.

Use your common sense, a cool head, qualified comparable/s of sub-markets and
talk to  experienced auction buyers before you start spending huge amounts of
money.

Buyers beware…..

If you will like to discuss this further? Feel free to schedule a call by
clicking the following link:

https://calendly.com/khldrashid1