What is comparable evidence?

So you are selling your property and are curious as to how a valuer prices it.

To calculate the value of a property, a valuer (who is a chartered surveyor) uses comparable evidence to assess the cost of the property, if sold on the open market at a given date.

Comparable evidence is applicable for all types of land and buildings used for commercial, industrial, residential and agricultural.

What is comparable evidence?

Comparable evidence comprises a set of similarities or differences when looking at local properties that are used in support of the valuation.

A comparable is used during the valuation process as evidence in support of the valuation of different items of the same general type. 

How is it used in the valuation process?

The valuer should ensure the comparables are:

  • Comprehensive ie a number of comparables
  • Very similar – identical to the property being values
  • Recent – representative of the current market
  • Verifiable
  • Consistent with local market practice

The valuer assembles an adequate number of transactions, researches the circumstances behind them and tests their comparability using knowledge and experience of the market to analyse the available transaction evidence.

The valuer does not normally specify the comparables used in the valuation but maintains a record of all evidence used and data analysed in case of disputes arising.

How can we help?

Valuer Registration assures the quality of valuations. The scheme reinforces professional standards and raises consumer confidence in the delivery of valuation advice to the highest professional standard. This is achieved through the established register of chartered surveyors engaged in valuations working in RICS regulated firms and other organisations and a system of regulatory monitoring.

Our Information Paper on Comparable evidence in property valuation, explains the principles of comparable evidence use.