A residential valuation is more than a brief visit followed by a figure. The valuer first defines the question they are being asked to answer, then carries out proportionate inspection and research before analysing market evidence. The resulting opinion applies to a specified property interest and valuation date.
The exact process varies with the purpose. A current private valuation, a date-of-death probate valuation and a single joint expert instruction do not have identical requirements. Clients should provide the intended use and recipient’s instructions at the outset.
Agreeing the instruction
Written terms should identify the client, intended users, property, legal interest, purpose, basis of value and valuation date. They should also explain the proposed inspection, information sources, assumptions, limitations, fee and reporting format.
The valuer checks competence, independence and possible conflicts before accepting. Where the property or purpose requires specialist knowledge, they may seek additional information, adjust the scope or decline the work.
Inspecting the property
The valuer records characteristics material to value. These may include accommodation, floor area, age, construction, apparent condition, alterations, site, parking, outlook and immediate surroundings. For a flat, tenure and information about the block may also be important.
This is not automatically a building survey. The extent of inspection is the extent agreed for the valuation, and inaccessible or concealed elements may be outside it. Material restrictions and assumptions should be disclosed.
Researching the market
The valuer investigates sales and other evidence relevant to the valuation date. They consider how closely each comparable resembles the subject and whether the transaction appears representative. Published data can be useful, but may be delayed or omit details that affect price.
Evidence is adjusted and reconciled for differences rather than reduced to a mechanical price-per-square-foot calculation. Local knowledge and professional judgement are particularly important where transactions are scarce or the property is unusual.
Preparing and using the report
The report explains the instruction, valuation approach, evidence, assumptions and conclusion to the level required by the agreed purpose. The figure should never be detached from those qualifications. A change in use, intended user or valuation date may require a new instruction or update.
A valuation is not a promise of a sale price or a guarantee of third-party acceptance. It is also not legal, tax, lending or financial advice.
- Provide plans, leases and known alteration information where relevant
- Arrange safe access to all normally accessible areas
- Share the recipient’s current requirements before the visit
- Tell the valuer about the required valuation date and any historic changes
Advice for your property
Get the right professional inspection
Online guidance is useful, but it cannot account for the construction, condition and history of an individual property. Tell us what you are buying or need valued and we will explain the appropriate service.
Authoritative sources and further reading
The guide is general information, not property-specific, structural, legal, tax or financial advice. Source pages can change; consult the relevant professional for your circumstances.