What is a property valuation, why get one and how much does it cost?
You might think you know what a property valuation is, but they are not just for when you are about to sell a property. Plus, it is not simply estate agents who conduct them either. Here we explore why you might need a valuation, how much they cost and what types of valuation are available.
What is a property valuation?
A property valuation is an estimate or appraisal of how much a property is worth. They are mainly conducted by estate agents for the benefit of homeowners who want to know the value of their property, usually in advance of putting it up for sale. A valuation gives the estate agent an idea of what price a property could fetch on the open market.
There might be other reasons to get a property valuation. It might be due to reasons of probate, to find out the value of the estate of a loved one after they have passed away. It could be for insurance purposes. Mortgage lenders will also carry out their own valuations, to make sure a property is worth the price it is being sold for.
Who carries out property valuations?
Estate agents and surveyors usually undertake valuations. If you want to put your property up for sale, an estate agent will come to value it; surveyors will conduct mortgage valuations, probate valuations and ‘Red Book’ valuations.
How is a property valuation different from a mortgage lender’s valuation?
A property valuation is different from a mortgage lender’s valuation because the objective is different. A property valuation is for the benefit of the homeowner, who may be looking to sell the property after having it valued. A mortgage lender’s valuation is arranged by the mortgage company, and only has the lender’s interests at heart.
How much is a house valuation?
Some estate agents may charge for property valuations, or insist that you use their services after a free valuation, but haart offers free, no obligation valuations. These are conducted by our experienced staff, who will visit your property in person. They will take a few days to arrange. If you are looking for an immediate estimate of your property value, haart offers an instant valuation tool
What other kinds of valuations are there?
Probate valuations
A probate valuation is a valuation of a property that belonged to someone who is deceased, in order to establish the value of the property. This is part of the process called probate, which values a person’s estate for tax purposes.
Red Book valuations
A ‘Red Book’ valuation is a way of describing the most rigorous appraisal of a property’s value by a surveyor, according to the professional standards of RICS – the Royal Institution of Chartered Surveyors. The publication that sets out these standards is known as ‘the Red Book’.
Why and when would I need a property valuation?
Selling a Property
The most common reason for getting a property valuation is when you are selling, or about to sell a property. You need a valuation in order for the estate agent to put the property on the market at a reasonable price.
Buying a Property
You wouldn’t normally need to arrange a valuation of the property you are buying – a mortgage valuation will usually flag any concerns the mortgage company has over the purchase price and the value of the property.
Resolving Disputes
Valuations may be needed in circumstances where there is disagreement about how much a property is worth. This could arise if a couple are divorcing and have to sell a property jointly owned between the two parties. Or a landlord and tenant may be in disagreement about a rental rate rise, and seek clarification about the current value of a property. Whenever two parties hold an interest in a building, there is potential for dispute.
Why are property valuations important?
An accurate valuation is vital if you want to get the best price for your property. It tells you what your property could be worth if you decide to sell and takes into account numerous factors including:
- What similar properties in the local area are selling for
- The condition of your property
- The current performance of the national housing market
How do I get a valuation on my house?
Having an experienced agent visit your home and prepare a valuation of your property is always recommended. They will have received specific training to assess your home. It is possible to get an estimate online, but you will get a better and more accurate valuation from someone physically seeing your property rather than the limited information an online valuation takes into account. If you would like to get an idea of the value of your home, use our instant valuation tool.
How long does a house valuation take?
You can expect a face-to-face house valuation to last between 15-20 minutes. It could take less time, or a little longer to value your property. This will depend on the size of your house and the number of rooms you have. If there are any unique features to your home, allow more time.
Can I speed up the valuation process?
Once you have made an enquiry for a valuation, most estate agents will try to arrange an appointment as soon as possible, at a time that is convenient for you. This will normally be in the same week that you made the valuation enquiry. If you don’t want to wait a few days until the in-person valuation appointment, you can use an instant valuation tool, but the valuation you receive from this option is always likely to be slightly less accurate.
What if I need a valuation urgently?
The time frame for a house valuation is normally quite short, and you won’t be waiting long for your valuation to take place. But if there is a reason why you need an urgent valuation, let your estate agent know.
What happens at a house valuation?
The estate agent or valuer will take a range of things into consideration when viewing your property. They will look at its interior and exterior, inspect its condition, the number of rooms it has, the age and location of the property, whether it has parking and the potential it has to be expanded. They will also identify any unique features the property has which could make a difference to its value.
As part of the valuation the estate agent will take measurements, in order to calculate the overall size of the property. This will have a direct bearing on the valuation and will be used to prepare the marketing details of the property.
The estate agent may also take photographs during the valuation, although the marketing photographs (used to promote the property) may be taken at a later time.
How should I prepare my home for a valuation?
Before a valuation it is not essential to make your house look like a show home, as if you were showing the property to a prospective buyer. But doing things like cleaning the kitchen and bathroom will give a good impression of the property to the agent conducting the valuation.
You might want to gather any important paperwork you have about the property, and note down any upgrades and improvement works that have been made. It may also be worth researching sales in your area to have an idea of a baseline figure for your home’s value.
Does my house need to be tidy for a valuation?
A good agent will not let minor clutter have any effect on the valuation. However, it is always advisable to tidy up and make sure every room is presentable.
What questions should I ask during my home’s valuation?
Some questions that you can ask the agent include:
- How will you determine the value of my home?
- Can you provide comparable data on recent sales of similar properties in the area?
- Are there any factors that could impact my home’s value?
- What can I do to improve my home’s value?
- How does my home compare to others in the area?
- What are the market conditions like in my area?
- Are there any legal or regulatory considerations I should be aware of?
What do valuers look for when valuing a house?
Condition and unique characteristics
A primary consideration for a valuer when valuing a house is its condition. Is the property structurally sound? A valuer will look for cracks in the interior or external walls, or any evidence of subsidence. The state of roof tiles and guttering will be inspected. Any significant remedial repair work that is needed on the property will affect its value.
Are there signs of damp inside, such as peeling wallpaper or black marks on the walls or ceilings? How old is the boiler? Does money need to be spent modernising the property? If a house needs new carpets or a new bathroom buyers will be looking to reduce what they are prepared to pay for the property.
No two properties are the same, and some will have unique features that can increase its value. Valuers will look for things that make a house stand out from the crowd. Original fireplaces, staircases, south facing windows, walk-in baths, smart lighting, wet rooms – all these features could make a difference to a valuation.
Space and expansion potential
How many bedrooms does the property have? What size is the plot? How big is the garden? Space is an important factor when valuing a house, but size alone does not determine the valuation. In the UK the number of bedrooms is more important for families, because of the preference for children to have their own room.
Is there potential to develop the property? This is an important consideration for valuers, as buyers will look more favourably on properties that can grow as their families or needs grow. Could outside space be used for an extension, a loft turned into a bedroom, or a cellar into a study? Valuers will want to know if any planning permission applications already exist for the property, which will improve your chances of receiving a higher valuation.
Location and parking
Location, location, location – where have we heard that before?! It’s so true though. A valuer will know the market value of similar properties in the local area, and how this is affected by proximity to schools, shops, transport links and outdoor space.
Where can you park? Does the property have a garage or driveway? Private off-road car parking spaces are not always guaranteed, especially for properties in urban areas. For these types of properties valuers will want to know how easy it is to park close to the property and whether parking permits are needed.
What happens after a valuation?
Estate agents aim to provide an accurate valuation of your property at the valuation appointment. If this is not possible, they will usually send you a valuation report very soon after the valuation. You will be able to review the report and ask any questions, and then prepare for what’s next – whether that is putting your property on the market, or whatever you wanted the valuation for.
How quickly will I know how much my house is worth?
Some estate agents might give you a valuation at the time of your appointment, or at least a rough estimate; others may wait until they deliver their official valuation report.
How long is a house valuation valid for?
There is no set time before a valuation expires. The valuation will be applicable for as long as the market conditions remain the same. This depends on a number of factors, and the housing market can change quickly.
However, you should try to put the property on the market within three months of any valuation. Any longer than this and you should get an updated valuation, to ensure you are still offering your property at a realistic price.
How many house valuations should I get?
Getting three valuations will normally give you a good idea of an average or realistic valuation. It will probably offset the effect of one high or low valuation. A valuation that is too high could mean the property attracting little interest from buyers, and if it is too low it could lead to a sale, but not for a competitive price.
Get a house valuation free with haart
If you want to know how much your property is worth, haart offer free, up to date, no obligation valuations. Valuations take around 15-20 minutes and give you a better idea of what price you could achieve for your home.