If you need to know what a property is really worth, an online estimate or estate agent appraisal may not always provide the level of independence or detail you need.
There are a number of situations where obtaining a professional property valuation can provide greater clarity, from purchasing a home to dealing with probate, separation or property investment.
An independent property valuation survey provides a professional assessment of a property’s market value, taking into account the property itself, comparable market evidence and the factors that may influence its value.
So, when might you need one?
1. You’re Buying a Property
Buying a property is a significant financial commitment, and it can be difficult to know whether the asking price accurately reflects its market value.
An independent valuation can help establish what the property is worth based on factors such as:
- Location
- Property type and size
- Age and condition
- Individual property characteristics
- Local market conditions
- Recent comparable transactions
This can be particularly useful if you’re purchasing an unusual property, there are few comparable properties available or you simply want an independent professional opinion before proceeding.
For a professional assessment of a property’s market value, find out more about our Property Valuation Surveys.
2. You’re Selling a Property
Understanding the value of a property before it goes to market can help you make more informed decisions about pricing.
Estate agents will commonly provide a market appraisal when competing for an instruction. However, this isn’t the same as obtaining an independent professional valuation.
A valuation survey provides an impartial assessment based on the property, available market evidence and professional judgement rather than a suggested marketing price.
3. You’re Dealing With Probate or an Estate
When someone dies, it may be necessary to establish the value of property they owned as part of administering their estate.
A professional valuation can provide an assessment of the property’s value at the relevant valuation date, helping executors and other parties understand the value of property assets within the estate.
The precise requirements will depend on why the valuation is needed, so it is important to explain the purpose of the valuation to your surveyor from the outset.
4. You’re Going Through a Separation or Divorce
Property can represent one of the largest assets to be considered during a separation or divorce.
Where both parties need to understand the value of a property, an independent valuation can provide an impartial professional assessment rather than relying solely on estimates from either party.
Depending on the circumstances, there may be specific requirements for how the valuation needs to be prepared or instructed.
5. You’re Making a Property Investment Decision
For landlords, investors and property owners, knowing the current value of an asset can support better financial and investment decisions.
You may want to understand a property’s value when:
- Considering a purchase
- Reviewing an existing investment
- Assessing a property portfolio
- Planning the disposal of an asset
- Reviewing your wider investment strategy
An independent valuation provides another piece of evidence to consider alongside potential rental income, operating costs, condition and future investment requirements.
6. You Need a Valuation for Tax or Financial Purposes
Property valuations may also be required for a range of financial, accounting or taxation purposes.
The appropriate basis and date of valuation can vary considerably depending on why the valuation is required.
It is therefore important to tell your surveyor exactly what the valuation will be used for before the work begins. This allows them to establish whether they can provide the required valuation and what information or reporting will be necessary.
7. You Want an Independent Opinion of What Your Property Is Worth
You don’t necessarily need to be buying or selling a property to want a better understanding of its value.
Property owners may seek an independent valuation when reviewing their assets, considering future plans or simply wanting a professional assessment that isn’t connected to the marketing or sale of the property.
This is one of the key differences between an independent valuation and an estate agent’s market appraisal.
Property Valuation Survey vs RICS Homebuyers Survey: What’s the Difference?
These two services are sometimes confused, but they have fundamentally different purposes.
A property valuation survey is primarily concerned with establishing the property’s market value.
A RICS Homebuyers Survey is primarily concerned with its physical condition. Depending on the level selected, a Home Survey can identify defects, risks and potential repair or maintenance requirements.
If you’re purchasing a property, you may therefore need to consider both what the property is worth and what condition it is in.
Is a Property Valuation the Same as an Estate Agent Valuation?
No.
An estate agent’s market appraisal is generally designed to suggest a price at which a property could be marketed for sale.
A professional property valuation has a different purpose. The surveyor independently considers the property, relevant market evidence and the specific purpose for which the valuation has been requested.
This distinction can be important where a valuation is needed for a formal financial, legal, tax or asset-management purpose.
What Can Affect a Property’s Value?
Property values are influenced by much more than floor area alone.
A surveyor may consider factors including the property’s location, size, layout, age, construction, condition and individual characteristics, alongside wider market conditions and comparable transactions.
Even two apparently similar properties on the same street can have different values due to their condition, extensions, plot, specification or other characteristics.
This is why a professional valuation involves both market evidence and professional judgement.
Arrange a Property Valuation Survey with PM+
If you need an independent assessment of a residential or commercial property’s value, PM+ can help.
As a RICS-regulated firm, we provide professional property valuation surveys based on relevant market evidence and professional judgement.
Whether you require a valuation for a property purchase, probate, financial planning, investment or another purpose, speak to our team about your requirements.
