When you’re thinking about selling your home, you’ll hear the word “valuation” used in different contexts. Estate agents offer free valuations to help you understand what your property could sell for. RICS surveyors offer paid valuations for mortgage and legal purposes. Both are valuable professional services – they just serve different needs.
Understanding which assessment, you need, and when, helps you get the right information at the right time. Here’s what you need to know.
Related: What is a ‘guide price’?
What is a market appraisal?
A market appraisal, often called an estate agent valuation, estimates what your property could realistically sell for in today’s market. Estate agents provide these free assessments based on recent sales of similar properties, current buyer demand, and their local knowledge.
When you request a free home appraisal, an estate agent visits your property to assess its condition, location, size, and features. They’ll look at comparable properties that have sold recently and factor in market conditions. Are properties selling quickly or sitting unsold? That affects what buyers will pay right now.
Related: How to tell an offer isn’t right for you
What is a property valuation?
A property valuation is a formal assessment carried out by a qualified RICS surveyor for mortgage, legal, or financial purposes. Unlike market appraisals that focus on selling price, valuations establish an accurate property value for official use.
Mortgage lenders require valuations before approving loans to ensure the property provides adequate security. If you’re remortgaging, releasing equity, or involved in divorce proceedings, probate, or tax matters, you’ll need a formal RICS valuation.
Surveyors conducting valuations follow strict professional standards set by the Royal Institution of Chartered Surveyors (Red Book). They assess the property’s condition, construction, location, and potential issues that might affect value. Their report is detailed, legally binding, and carries professional liability.
Because valuations serve legal and financial purposes, they take a conservative approach. Surveyors often value properties slightly lower than market appraisals to protect lenders and ensure financial decisions are based on solid ground.
Related: Things to do before listing your home for sale
Costs involved: paid valuation vs free appraisal
Free market appraisals
Estate agents provide market appraisals at no charge. You can request appraisals from multiple agents to compare opinions without spending anything. This professional service helps you understand your property’s market value before making decisions.
Paid valuations
Formal RICS valuations are paid services, with costs varying based on property value, size, complexity, and the type of valuation required. Basic mortgage valuations typically cost less than full structural surveys with detailed valuations for larger or older properties.
Some mortgage lenders include free basic valuations as part of their mortgage product. However, this basic valuation serves the lender’s needs, not yours- it confirms the property’s worth for lending purposes but doesn’t identify defects or problems.
If you need a valuation for non-mortgage purposes- probate, divorce settlements, tax planning, or financial decisions, you’ll commission and pay for it directly. Contact RICS surveyors directly for quotes based on your specific property and requirements.
Market appraisal vs valuation: What’s the difference?
Purpose
Market appraisals help you price your property for sale in today’s market. RICS valuations satisfy legal, mortgage, or financial requirements.
Who provides them
Estate agents provide market appraisals based on sales experience and current local market knowledge. Qualified RICS surveyors provide valuations following professional standards.
Cost
Market appraisals are free professional services. RICS valuations are paid services because they’re formal, legally binding assessments with professional liability.
Approach
Market appraisals focus on what buyers will pay right now. They’re realistic about current market conditions and designed to help achieve a sale. Valuations take a conservative approach for financial security, often coming in slightly lower than market prices.
Legal standing
Market appraisals are professional opinions without legal weight. RICS valuations are formal reports that carry legal standing, are accepted by courts and HMRC, and involve professional liability insurance.
Timing and focus
Market appraisals reflect current market conditions and buyer sentiment- they’re forward-looking and dynamic. Valuations provide a snapshot of property value at a specific date for official records.
Which one do you need?
Planning to sell?
Start with free market appraisals from several local estate agents. This gives you a realistic range for your property value without spending anything. Choose agents with strong local knowledge who can explain how they’ve reached their figures and what’s happening in your specific area.
Avoid estate agents who significantly overvalue your property to win your business. Overpricing means your home sits on the market longer, eventually requiring price reductions that make it look undesirable to buyers. A realistic appraisal from an honest, experienced agent serves you far better.
Buying with a mortgage?
Your lender will arrange a valuation – this is a standard requirement and not optional. Many lenders include free basic valuations, whilst others charge based on property value. This valuation protects the lender’s investment, not yours. Consider whether you need a more detailed survey beyond the basic valuation to identify potential problems before you commit to the purchase.
Legal matters?
For probate, divorce, tax purposes, or Help to Buy redemptions, you’ll need a formal RICS valuation. Your solicitor can recommend qualified surveyors who specialise in these assessments and understand the specific requirements involved.
Online estimators?
Online home value estimators provide instant figures based on property data and recent sales. They’re useful for quick initial guidance, though they can’t assess your property’s specific condition, recent improvements, or unique features. For the most accurate assessment, follow up with an in-person market appraisal that accounts for these important factors.
Related: What type of survey do I need?
Getting the right assessment
Both market appraisals and RICS valuations serve important purposes in property transactions. The key is using the right assessment for your specific situation. An accurate market appraisal helps your property sell at the best price in a reasonable timeframe. A proper RICS valuation protects legal, financial, and mortgage decisions.
Contact your local Whitegates branch for a free, no-obligation market appraisal of your property.
