Published: 26/10/2024
By Cavender Estate Agent
An accurate
house valuation is crucial to understand exactly what your house is worth. If you are considering selling or refinancing it is important to know the value of your home before you plan your next move. Houses also need to be valued for probate and divorce, to ensure that assets are included accurately. Even if you are not planning on moving house, it can be useful to have your home valued so that you understand exactly how much equity you have. While you can make an educated guess at the value of your property, based on recent sales in your area, it will just be a guess, and having an accurate valuation can give you peace of mind for planning your future. Depending on what you want your valuation for, you can choose different types of valuation methods, such as estate agents, online, or an in-depth RICS Chartered Surveyor valuation. We will explore what is the best fit for your needs in this article.
Types of House Valuations
Estate Agent Valuations
Estate agents will obviously need to value your home when they are offering to sell it. Many people when looking for an estate agent speak to a few local companies, and ask for a valuation, to get an idea of the value of their home. Estate agents have excellent local knowledge and will be up-to-date on the market conditions. However, their valuation will be based on aiming to sell your property, and if you are keen to sell quickly they may set the value of your home attractively low to encourage interest in the property, so it may not be a fair valuation of what your property is worth. This said, you can take three valuations of different estate agents and calculate the average which may possibly give you a more balanced valuation for your property.
Online Valuations
There are many online valuation tools from websites such as Zoopla, that provide valuation results. These tools use algorithms based on historical data, location, and details about the property to provide a valuation. These tools can be useful for planning for the future, such as checking how much equity you have in your property, but are probably not completely accurate, so they may be worth using to give yourself an idea of the value, but consider backing this valuation up with another method.
RICS Chartered Surveyor Valuations
An RICS Chartered Surveyor valuation will give you the most comprehensive valuation. These valuations are accurate and thorough and are often used for official purposes such as mortgage applications, and legal matters. While these professional valuations carry a cost, they can be essential for various matters and will give you an accurate and respected valuation for your property.
Cost of House Valuations
Free Valuations
Online valuation tools are mainly free, though the results they give have limitations. You will usually need to sign up to access the valuation results. Estate agents will normally offer free valuations as part of their sales package but remember that their valuation will be geared towards selling.
Paid Valuations
Choosing to use a professional surveyor can be a good choice if you want a detailed and particular report. There are different types of surveys including a condition report, a home buyer report and a building survey. The price will vary according to the types of survey and the size and condition of the property. Obviously, the more detailed you want your report to be, the more it will cost, and prices typically range from £150 to £800.
Factors Influencing House Valuation Costs
As with many things, various factors will affect valuation costs. A large, or complex property, especially an older property, will require a more detailed and consequently expensive survey. Geographical location will also affect the cost of the valuation, with certain areas commanding a higher demand. The type of survey will alter the price, with a detailed survey such as a full structural survey costing more than a basic valuation. The valuation market can also be affected by the property market, which can fluctuate.
How to Save on House Valuation Costs
Be very clear about what you need from your valuation. You may find that the free valuations offered online or through estate agents may be more than sufficient for your needs. If you do require a paid valuation, then make sure that you shop around to find the best quote, though bear in mind that you are paying for a professional service and that the cheapest isn't necessarily the best. If you need a valuation as part of your mortgage, this may be offered by your mortgage company. You can always get a free valuation initially and then if you need a more detailed one, you can take the necessary steps to secure one.
Choosing the Right Valuation Method
When to Use Free Tools vs. Paid Services
Free tools are great for getting a rough idea of the value of your home, and helping you in the initial planning for your next move, for example, if you are looking to buy a larger home. Paid valuations are ideal for official purposes, such as disputes, probate or mortgages. If you need a valuation for official purposes, then you will normally be notified of these requirements.
Matching the Valuation to Your Needs
Consider what type of valuation you need. If you are buying a very old house, that has not been well maintained, then a full structural report is generally a good idea. You may need a formal independent RICS valuation if you want to sell a Help to Buy or Shared Ownership house, or if you would like to repay the loan. You may also need a formal valuation if you are exercising your Right to Buy, or for tax or legal purposes. If you are unsure about the right type of valuation, always seek advice.
Common FAQs About House Valuations
- Can the cost of a house valuation be included in mortgage fees? The cost of a house valuation can be included in the mortgage fees, and many mortgage providers will do this. You will need to check with your mortgage lender, as it can vary from company to company.
- How often should I get my house valued? You can get your property valued as often as every 6 months, as the market can change rapidly. It depends on what you want your valuation for. If you are planning for the future, it is worth getting your property valued regularly so that you know the value of equity that you are building up in your home.
- Do different types of properties have different valuation costs? Larger, older properties or ones with distinctive features will cost more to value than smaller, newer houses, due to the increased time and complexity of the valuation.
- Can I challenge a house valuation if I believe it’s inaccurate? You can indeed challenge a house valuation, but you will need substantial evidence such as sale records of nearby and similar properties.
- Are house valuations tax-deductible? If it is part of a business expense then it may be. If you are unsure, it is always wise to seek advice from your accountant.
Value Your Home with Cavender Estate Agent
Here at
Cavender Estate Agent Guildford, we know that the first step in selling your home is to find out what it is worth. We offer
free valuations as part of our professional sales package. If you are interested in
selling your home, talk to our team today, and let us help you. Simply call us on
01483 457728
