A property valuation survey is an assessment done by a professional surveyor to assess the market value of your property. It provides an unbiased expert opinion on the worth of the property, considering its location, condition, size, and any other recent, comparable sales.
Understanding the market value of a home is useful for buyers and sellers alike. Whether you are buying a new home, selling a property, or refinancing a mortgage, property valuation surveys can be helpful.
The average UK house price was £286,000 in April 2023, which is £9,000 higher than 12 months before, according to the UK House Price Index. If you are curious as to how much your property is worth, this article will explain how to get a property valuation survey, as well as the costs involved.
Why Do I Need a Property Valuation Survey?
A property valuation survey is essential for a variety of reasons:
- Sales: It helps both buyers and sellers to understand an accurate market value of the property.
- Mortgages: Lenders require a valuation survey to ensure that the property is worth the amount being borrowed.
- Inheritance and tax: Property valuations are needed for calculating inheritance tax or capital gains tax.
- Divorce: When dividing assets between parties during divorce or separation proceedings, it is important to understand the value of a property.
What Are the Different Types of Property Valuation Surveys in the UK?
Mortgage Valuation
Mortgage valuation is the most basic type of survey required by lenders to determine if the property provides adequate security for the loan.
Homebuyer’s Report
This is a more detailed report that provides an overview of the property’s condition. It raises any significant defects or issues that may affect its value.
Building Survey
Also known as a structural survey, a building survey provides a comprehensive assessment of the property’s condition, providing advice on necessary repairs or maintenance.
Online Valuation
You can get your property valuation done online. A computer calculates your home value based on location, property type and current market prices. Although these come at a cheaper price, they will be less accurate.
Matrimonial Valuation
Matrimonial valuations are used by courts to determine how a divorcing or separating couple’s assets will be divided. The surveyor reports directly to the court.
Can I Conduct a Property Valuation Myself?
Yes, in theory, but conducting a professional property valuation survey requires experience, expertise, and access to data. To get an accurate and unbiased valuation, you should consider contacting a registered surveyor.
How Much Does a Property Valuation Survey Cost?
Property valuation surveys typically cost between £300-£900, but more comprehensive reports can cost more, and online reports will cost less. The cost of a property valuation survey can vary depending on factors such as the type of survey and the surveyor’s level of expertise.
For How Long Is a Property Valuation Survey Report Valid?
The validity of a property valuation survey report lasts so long as your property is on the market for sale, which can be anything from a couple of weeks to a matter of months, or more.
For purposes such as tax planning or legal settlements, the report’s validity can depend on the specific circumstances of the involved parties.
Can I Use an Old Property Valuation Survey for a New Transaction?
No, not usually. In most cases, it is not a good idea to rely on an old property valuation survey for a new transaction. The value of a property can change over time due to market fluctuations, changes in the property’s condition, or alterations in the local area.
Can I Dispute the Findings of a Property Valuation Survey?
Yes, if you disagree with the findings or valuation, you can discuss your concerns with the surveyor directly. It is important to communicate any specific issues or evidence that you believe may affect the valuation.
If a resolution cannot be reached, you may seek a second opinion from another qualified surveyor. Keep in mind that surveyors’ opinions can vary, and it is advisable to consider multiple professional perspectives before making any decisions based on the survey results.
What Should I Expect During a Property Valuation Survey?
During a property valuation survey, a professional surveyor will visit your property to assess its value. First, you schedule an appointment with the surveyor, who will visit your property at a mutually convenient time.
The surveyor will conduct a thorough inspection of both the interior and exterior of the property. They will take measurements, note down the property’s features, and evaluate its overall condition. They will document their findings, including details about the property and any visible defects or issues.
The surveyor will then research recent sales of similar properties in the area to assess the market value. They will consider factors such as location and size, among other things. This information is then used to prepare a detailed report outlining the surveyor’s findings and the property’s estimated value. The report may also include recommendations for repairs or maintenance if necessary.
The report is then delivered to you, either in person, by mail, or electronically, depending on your agreement. If you have any questions or concerns about the report or its findings, you can schedule a discussion with the surveyor to seek clarification.
What Factors Influence the Value of a Property During a Property Valuation Survey?
During a property valuation survey, the surveyor takes several factors into consideration to assess the market value of your home, including:
Location
The location of a property is a significant factor in determining its value. Desirable locations with good amenities, proximity to schools, transportation, and popular areas can contribute to higher property values. For example, a home in the middle of a clean, trendy city centre might score higher than a home in a dangerous neighbourhood with no transport access.
Property Size and Condition
The size and condition of a property play a huge role in its value. Larger properties generally have higher values, as well as well-maintained or newly-built homes.
Comparable Sales
Surveyors analyse recent sales of similar properties in the area to determine the market value. These comparable sales provide a benchmark for assessing the value of a property based on factors like size, condition, location, and recent market trends.
Features and Amenities
Unique features and amenities within a property can influence its value. This includes factors such as the number of bedrooms and bathrooms, the presence of a garden or outdoor space, parking facilities, and additional features like swimming pools or home cinemas.
Market Conditions
The overall state of the real estate market can impact property values. During periods of high demand and low supply, property values tend to rise.
