What is the difference between a bank valuation and a RICS valuation in Portugal?
The client and the question. A bank valuation is commissioned by the lender to decide how much to lend; the valuer must be independent and CMVM-registered, and you receive a copy. A RICS valuation is commissioned by you, on terms you agree, under the Red Book and IVS. One valuer can meet both sets of rules.
Who is the client?
In a home loan the lender is the client and must use an independent valuer registered with the CMVM (Decree-Law 74-A/2017, article 18(1)). In a RICS valuation you are the client: the terms of engagement, the purpose and the basis of value are agreed with you in writing before work starts.
What rights do I have over the bank valuation?
The lender must give you a copy of the report within 10 days of receiving it. If you paid for it, the report is yours. You can complain in writing about its results and reasoning, and the lender must give a reasoned reply; you can also ask for a second valuation (Decree-Law 74-A/2017, article 18(2)–(6)).
Can the two give different figures?
Yes, when they answer different questions — a different basis of value, date or set of assumptions. When the basis is market value at the same date, two competent valuers should land close to each other, and any gap should be explained by the evidence. See The basis of value comes before the number and What is a basis of value under IVS?.
Read next
- What is a Red Book valuation?
- What is a basis of value under IVS?
- The basis of value comes before the number
- Market value under IVS