Property Valuation Cost

How Much Does a Property Valuation Cost?

If you are in the process of selling, buying, or remortgaging a property, then it is important to ensure that an accurate valuation of the property is obtained. This will mainly be for the benefit of the lender, to ensure that they are not lending the buyer or owners applying to remortgage more than the property is worth.

Many estate agents will provide a valuation free of charge, as it gives them a chance to view the property and market their services to the owner looking to sell. However, you may prefer to pay for a valuation in some cases, or if you are buying, you may be required to pay for an RICS surveyor to value the property before you can go ahead and complete the purchase with the release of your mortgage funds. A professional RICS valuation of your property is likely to be more accurate compared to a valuation conducted by an estate agent.

How Much is a Property Valuation Fee?

There will usually be a fair amount of research involved in providing a property valuation. Estate agents will spend time researching the local property market, looking for similar properties that have sold and how much they sold for in the past few months and other local market data that might play a part in the price. Estate agents will typically use professional software programs to get a fairly accurate valuation figure, and the process is usually done fairly quickly depending on how complex the property is and the history of sales in the area.

Most estate agents will request to view the property in person to complete the valuation as they will base the figure on various factors relating to the current condition and liveability of the property. On the other hand, RICS surveyors, who carry out valuation surveys on behalf of lenders, will have slightly different approaches. While they also look at local property sales data, they may not always need to view the property in person to provide a figure.

House Valuation Fees UK

How much you can expect to pay for a house valuation in the UK will depend on several factors. You may often be able to get a valuation figure free of charge from your estate agent if you are selling, or the mortgage lender if you are buying. This is because free valuations are often offered by both parties as a way to encourage more customers.

Valuation fees when buying a house can vary, but in general, a property valuation can cost anything from £150 to £800 depending on several factors including the size, condition, and complexity of the property. £300-£400 is a reasonable fee to expect to pay for a property valuation on an average house priced between £100,000-£249,000.

When Do You Pay Property Valuation Charges?

If you are in the process of buying a new property or want to remortgage your current property for any reason, you may be charged for a valuation survey by your mortgage lender. Despite the fact that there may be a valuation figure put in place by the estate agent, most lenders will want to carry out their own independent valuation to make sure that the asking price is in line with the actual value of the home, and they are not lending more than the property is worth. This will usually be done by instructing an RICS surveyor to conduct a valuation survey on the property to confirm that it is worth the figure you are planning to purchase or remortgage it for. Lenders do this to reduce their level of risk. Some will charge a fee to the borrower to cover the cost, while others include a bank valuation of the property with their service.

What’s Included with Property Valuation Fees?

Before a valuation is conducted on your property or on the property that you are looking to buy, you may be interested to learn more about what is included in the fees you may be charged.

A valuation survey or Valuation Report that is carried out by an RICS surveyor involves a basic inspection of the property with the main aim of determining how much it is worth. When surveying the property, the surveyor will consider several different factors including the property’s location and condition to come up with a valuation figure.

It is important to bear in mind that if you are buying a new property, a valuation survey or report should not replace a home survey such as a condition report, homebuyer’s survey, or building survey, as it does not go into any detail regarding the condition of the property, and in many cases, the surveyor will not step foot into the property while surveying it. The main purpose of this survey is to determine the true current market value of the property before providing a mortgage.

Is the House Valuation for Mortgage Cost Worth It?

There are several reasons why it might be worth paying for a professional valuation of your property or a property that you want to purchase, either from a chartered RICS surveyor or an estate agent. There are different benefits of paying for a house valuation depending on whether you are buying, selling, or remortgaging a property.

Benefits for Buyers

If you are in the process of buying a home, you can benefit from having a professional valuation in various ways including:

1 – Valuation Fees for Property – Lending

Many lenders will not be willing to release your mortgage funds until they have an accurate valuation figure in place. Your lender will use information gathered and analysed by an RICS surveyor to determine if the property is worth the amount that you want to borrow to pay for it.

2 – Pay Valuation Fees When Buying a House for More Negotiating Power

In some cases, paying for a professional valuation of the property can give you as a buyer more negotiating power with the seller. This is especially true if you have a valuation survey conducted by the lender and a down valuation occurs, which basically means that the property is worth less than the current asking price. When you are in this situation, it can be tricky as there is no obligation for the seller to reduce the asking price, leaving you deciding between pulling out of the sale or making up the difference yourself. However, you may get lucky if you are buying a property from a seller who wants a quick sale, as they may be willing to reduce the asking price after the valuation has been conducted.

Benefits for Sellers

If you want to sell your property, then there are many advantages to having an accurate valuation figure. These include:

1 – The House Valuation Fee Can Help with a Faster Sale

Working with an expert estate agent to provide you with an accurate valuation figure in line with what is likely to be provided by an RICS surveyor can help you ultimately get a faster, more hassle-free sale for your home. This is because when you have the property valued, you are more likely to put it on the market for a more realistic asking price that is in line with the current value, which in turn will help you avoid future down valuations and other potential problems when you find an interested buyer.

2 – Accurate Pricing

A valuation of your property can help you make an easier decision when it comes to how much you are going to put your property on the market for. Since house prices change all the time, understanding how to price your property can be tricky for sellers, and what you paid when you purchased the property might no longer be an accurate figure to go by.

Benefits for Remortgaging

Finally, another time to consider having your property professionally valued is if you wish to remortgage it. There are various reasons for remortgaging a home including for making other large purchases or for carrying out work on the property such as an extension or loft conversion, which will raise the value of the property. In this case, the benefits of paying for a valuation can include:

1 – Get an Accurate Figure

Before remortgaging, a valuation will help you get a better understanding of how much you can be expected to get and how much to apply for. If you have owned your home for a while, then it is highly likely that the value will have changed since you first purchased it.

2 – Figure Out Value Increases

If you are remortgaging your property in order to carry out renovation work on it, then an accurate valuation will make it easier for you to determine how much value you will be able to add to your property by having the work carried out.

A professional valuation will usually set you back a few hundred pounds on average and is worth paying for whether you are planning to buy, sell, or remortgage a property. Note that commercial property valuation fee scales will be different to residential property valuation fees.

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