What To Expect from a Property Valuation
A property valuation is carried out by a survey that states how much a property would normally sell for through determining its current market value. The property valuation will be carried out by a professional surveyor or estate agent. They should be a neutral third party with no stake in the property. The report generated after a property valuation survey will last for up to three months before becoming invalid and the survey will need to be conducted again.
Table of Contents
What is the Property Valuation Cost UK London?
Whether or not you pay for the valuation of your property will depend on how your valuation is carried out. If you are selling your property via an estate agent, for example, then you may be able to use a free valuation service that is offered by many estate agents to give them a chance to view the property and secure the seller as a client. However, it’s worth considering that the survey carried out by the estate agent will not be the same as an RICS registered surveyor conducting the valuation survey. When you have an RICS surveyor carry out a valuation survey on your property, whether you are selling, buying, or remortgaging, you can expect it to cost between £150 and £800, depending on different factors. A valuation survey carried out on an average property priced at between £100,000 and £249,000 will usually cost around £300-£400.
Is the London Cost of Property Valuation Worth Paying?
If you have put an offer on a property and want to buy it, you may be considering paying for a valuation survey to be carried out on the property to ensure that you know its true value. When you are buying a property, getting a clear idea of the true value of the property can be useful since it can often give you more negotiating power with the sellers, allowing you to save money. However, it is usually better value as a buyer to have a homebuyer’s survey carried out on the property since this will not only give you a clearer idea of the value but will also make you aware of any problems or issues with the property that may affect you in the future. In addition, investing in a valuation survey can be very beneficial if you are selling your home or remortgaging since understanding the true value of the property will help you set a more accurate asking price or when applying for a second mortgage.
What Surveyors Look For When Valuing a Property
Most of the time, the surveyor will look for some similar things to what buyers are looking for when they perform a property valuation survey. An assessment of the land and property will be carried out, taking into account factors such as the location, topography, and size. The potential for the development of both the property and the land will also be taken into consideration. An internal and external inspection of the property, including the condition and the size of the building, the age of the property, and its design and layout will also be included in the survey. Various fixtures, fittings, and systems within the property will also be under inspection. Finally, any additional factors that might add value to the property such as parking and ease of access for vehicles will also be considered. Photos will also be taken to highlight any important features that could affect the final report.
How Long to Expect the Valuation Survey to Take
The size and condition of the property are the two main factors that will have an impact on the length of time that you can expect the property valuation to take. In most cases, a standard valuation survey will last for around 20-30 minutes for a property in reasonable condition and of average size. It takes between 2-3 working days for the surveyor to compile the survey report and send it back to you.
Questions You Might Be Asked
If you are in the process of listing your property for sale and are having a valuation survey carried out, be prepared to answer a series of questions about your property during the valuation process. It is important to answer these questions as honestly as possible to the best of your knowledge since the answers that you give might have an impact on the final valuation figure that is provided.
Your surveyor might ask questions about the property in general, including the price that you paid for it and how long you have owned it. You may also be asked for more information on any renovation work that you have carried out on the property, and if there are or have been any defects or issues that you are aware of.
What Will Impact the Property’s Value?
While conducting the valuation survey on your property, the surveyor will look for a range of different factors that might have an impact on the overall value of the property. These include basic property specifications including the number of bedrooms, bathrooms, and other rooms, the property’s size, appearance, and condition. Another factor that can impact the value of your property is where it is located. In most cases, properties that are in desirable locations with lots of amenities such as schools, healthcare, and transport links nearby tend to be worth more compared to those that are little more out of the way.
Why Do Mortgage Lenders Ask for Valuation Surveys?
If you want to buy a property and have applied for a mortgage to achieve this, it is not uncommon for your mortgage provider to request a property valuation on the house before they accept your mortgage application and release the funds for you to complete the sale. The reason why mortgage lenders do this is so that they can reduce the risk to themselves. Mortgage lenders need to know how much a property is worth so that they can avoid lending the buyer more money than the property is valued at.
This is usually carried out using a mortgage valuation survey, which is slightly different compared to a regular valuation survey. It’s often done from behind a desk rather than a surveyor paying a visit to the property and involves checking the value of the property against the selling price of similar properties in the area in the past few months. In some cases, the surveyor might drive by or pay a short visit to the property to ensure that all the information that they have on it is accurate.
What If the Property is Valued at Less Than The Asking Price?
In some cases, the surveyor might value the property at less than the price that you want for your property if you are a seller, or at less than the asking price for buyers. This can lead to issues for both parties. A down valuation occurs when the valuation of the property is determined to be less than the sale or remortgage price. In some cases, this can cause the sale to fall through, especially if the buyer is left with a shortfall when the seller is not willing to reduce the asking price in line with the valuation. A down valuation will often happen if the asking price for the property is not in sync with the current market trends. When house prices in that local area are falling faster than other areas nearby, for example, there might be a gap between the valuation of the property provided by an estate agent and what the surveyor deems the property to be worth.
The first thing to do if you are buying a property that has been down valued is to try and renegotiate the sale price with the seller. In some cases, this might mean that you are able to purchase the property for less than the asking price if the seller agrees to drop the price to match the valuation. This is more likely to happen if the seller is looking for a quick sale or if it is clear that they would struggle to get the original amount that they wanted from another buyer. If the property has been down valued due to rapidly dropping house prices in the local area, the seller might be eager to sell to you for the lower asking price now, rather than waiting for a new buyer and risking sale prices dropping even further.
On the other hand, if you are a seller or are remortgaging your property and have received a down valuation, you may be able to challenge it. You will need to collect evidence to prove that the property is worth more than the valuation given and may want to consider getting a second opinion from another RICS surveyor.
A property valuation is often an important step in buying or selling a property, giving both parties a clearer idea regarding how much the property is worth and helping the sale run more smoothly.
