Having a property independently valued is often a necessary part of applying for a mortgage, putting a home on the market, or working out what you might expect to sell for at auction.
Valuations are also useful for buyers, who may conduct a basic valuation or a more in-depth survey to ensure they aren’t paying over the odds and verify whether there are any underlying issues that might impact the value they are prepared to pay.
As a rough guide, a valuation takes approximately 40 minutes, but that may depend a lot on who is conducting the valuation, the purpose of the process, and the size of the property.
In this article, we'll run through all you need to know about property valuations, how these differ from auction appraisals, and what to expect when you book a valuation for a home you wish to buy or sell.
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Market Appraisals vs Property Valuations
It's important to clarify that a valuation is, in reality, an appraisal. The saying that a home is worth whatever a buyer is willing to pay rings true because a valuation doesn't solely consider the structure, size and condition of the house but what it may be worth in the current property market.
Different Types of Home Surveys
Valuers may work on behalf of either party or represent a mortgage lender, meaning the criteria they follow and the factors they inspect might not always be identical. As an idea:
A mortgage surveyor needs to assess whether the property is worth the amount a lender is offering with the home as security. A similar process applies when a property is surveyed during separation proceedings or when managing an inherited estate.
Selling agents will normally have conducted their own appraisal whether an estate agent or auctioneer. Their objective is to consider the real-world value of the property, looking at unique features or characteristics that will influence the way they advertise the property and what a buyer might be prepared to offer, taking into consideration the location and current condition.
Independent surveyors spend more time evaluating the property and will look beneath the surface at aspects such as potential subsidence, dampness, structural issues, and the underlying integrity of the building.
Although a valuation or appraisal tends to last about 40 minutes, as we've indicated, a more detailed survey or a survey you have commissioned independently may take longer, particularly for larger properties or those with several outbuildings or more complex layouts.
Some agents can also conduct 'desktop valuations' where they don't visit the property at all. Instead, they review the particulars and compare the property to similar lots sold in the local area. However, these are normally subject to inspection later on.
The Pros and Cons of an Instant Valuation
The desktop valuation process relies primarily on property data from the immediate area. For instance, if a house on your street with the same layout, construction date and number of bedrooms has sold within the last few weeks, your home might be expected to be worth a similar amount.
Although an instant or desktop valuation might be handy if you're getting an initial idea of what you might sell for or need to move forward quickly, they are inevitably less detailed or tailored to the condition and interior of your home.
It's often worth having an experienced agent or surveyor visit in person since aspects such as the style and age of your kitchen and bathroom, interior flooring materials, and how the home has been maintained and updated will often influence the valuation outcome.
How Long Does an Independent House Valuation Remain Valid?
Of course, the opinion of one valuer might differ marginally from another, and their recommendations only relate to the property on the date of their visit. There isn’t a fixed period in which a valuation expires, as such, but ongoing changes to the local property market, demand for particular types of homes, or alterations to the condition of the house could make an impact.
The best practice is normally to consider a valuation a reliable pointer for around three months, recognising that market changes might mean you need to have an updated figure after that.
Property valuations conducted for lending purposes or to provide an opinion as to the value of a property asset during legal proceedings are normally deemed valid for a maximum of six months.
Do You Need to Have a House Valued Before Selling at Auction?
In all cases, our auction team will arrange a convenient time to carry out an appraisal – this can often be combined with taking photos of the interior and exterior of the property and videoing a walkthrough to present to potential buyers alongside the marketing materials.
This step is useful since an experienced auction consultant can inspect the property, discuss your objectives, and make recommendations about whether your home is likely to sell well at auction and what they believe you may be able to achieve.
Like any selling process, you might be able to secure a higher selling price if the listing attracts significant attention - competitive bidding is one of the many advantages of selling at auction to an engaged buyer audience.
Even where time is limited, the appraisal is an opportunity to gain a better understanding of the potential selling price and might mean you discover a house is potentially worth more than you might have anticipated were you to select a price without any professional input.
Can I Organise a Survey on an Auction property I am Interested in Buying?
If you are a buyer and would like to bid on an auction lot but have reservations about the condition or structural integrity of the property, you may be able to organise your own survey.
It is worth contacting the auction team since they may be able to either share details of a survey conducted in the interim or advise on whether there will be scope to carry out a survey before or after the auction date.
