Should You Get a Valuation When Buying a House?

It’s important to be savvy while house hunting. From checking for potential structural issues to steering clear of buildings at the centre of legal disputes, there are myriad things to look out for.

So what about the asking price of the property you are considering? Surely the seller will have already arranged a valuation – so you won’t have to get one as well, right?

Actually, it may be a very good idea to invest in a survey or valuation before making an offer. There are numerous organisations that offer free property valuations for buyers, sellers, re-mortgagers and the simply curious.

In this article, the team at Property Solvers explores why you might arrange a valuation when planning to purchase property. We’ll also look into how this can be done.

What is a Valuation When Buying a House?

What does valuation mean when buying a house?

A valuation is a service provided by trained property specialists in order to gauge as accurately as possible the fair market value of a home.

A valuer or surveyor may take the following into account to calculate a figure:

• The previous sale price of the property
• Recent and current sale prices of similar properties in the area
• The condition of the property
• Whether or not modernisation or refurbishment is required
• The number of bedrooms, bathrooms and reception rooms
• The size of the property’s rooms
• Any attached land – including its quality and size
• The potential for extension, including any planning permission that has already been granted
• Land Registry information, including the available property title and sold prices
• Professional experience using Royal Institute of Chartered Surveyor (RICS) standards
• Whether the property is freehold or leasehold
• Any outstanding legal disputes
• The property’s accessibility and proximity to transport links, schools and local attractions
• The desirability of the property’s, including any views
• Potential problems with the property’s structure, including issues like the presence of asbestos

You can get in touch with any of a range of valuation specialists before making an offer on a house. Available options include free estate agent and online estimations (like the valuations offered through Purple Bricks, for example), specialist surveys and in-person services arranged via your estate agent.

How a Valuation Can Help You as a Buyer

You may decide to arrange a valuation for a property you are considering. The main benefit of this is that it will reveal whether or not its current asking price is fair and accurate.

A survey or valuation may help you to realise that the property has been overpriced. If you still want it, you could then make an offer below the asking price, using the results of the valuation to support that action. Once the seller is aware that they are asking too much for their home, they may agree to a lower offer – as it is less likely that other savvy buyers will be willing to pay their price.

Alternatively, an accurate valuation may help to flag up any potential problems with a property. Structural issues and other problems may be expensive to fix. This needs to be factored into your budget when buying a house.

If it turns out that a property is being sold for well below its market value, you should probably try to find out why. There may be a hidden physical or legal issue that needs to be resolved. If you get the property valued, you may find out what that problem is. Alternatively, it may simply confirm that you’ll be getting a great deal!

An accurate valuation can also help you to apply for a mortgage. The value of the property in question will in inform the offer you’re likely to make. This in turn will be factored into any mortgage pre-approval or offer you might receive. This way, it will be easier to understand what you can afford.

Who Does the Valuation When Buying a House?

Most sellers will probably have engaged their estate agent and/or an independent surveyor to value their property. You can do this, too.

Going independent – or, at least, seeking an independent second opinion – is usually best when trying to find out a property’s fair market value. Most estate agents try to be as honest and accurate as possible. However, less scrupulous professionals may massage the figures somewhat in order to achieve a higher commission.

For this reason, it is usually best to employ a surveyor who has no financial stakes in a property’s sale.

There are a range of resources available. We explore just a few below.

Quick Online Valuations

Usually available via larger estate agency websites, many of these tools only need you to enter your property’s postcode into their search engine. They then allow you to select the first line of its address, often from a dropdown menu.

An automated system then comes up with an estimated value. Sometimes, you’ll see the highest and lowest potential asking price as well as a figure somewhere in the middle.

Naturally, these should only be considered “ballpark” numbers. No one will have visited the property to undertake a full valuation, so matters such as its state of repair and recent renovations will not be considered.

Usually, this tool utilises data relating to relevant, recent local property sales and national property prices to come up with an estimate. For this reason, it’s best to use a number of these tools as well as an “in person” survey.

Free In-Person Valuations

Many estate agencies offer the option to have a surveyor attend the property in question in person for free. Of course, if you do not own the property, this will need to be arranged with the seller or their estate agent in advance.

These options tend to cost nothing because it gives the estate agent access to you and enables them to pitch their services.

Independent Expert Valuations

The most accurate option is to have a property valued by an independent RICS accredited surveyor. These specialists do not have any vested interest in the sale of the home, which means they won’t sugar coat anything. You may have to spend anything from £150 to £800 for this service, depending on the property in question – so it’s best to reserve this option for a property you are genuinely considering buying.

The best approach is to arrange for a number of separate valuations to be undertaken. You can then compare the results for the most accurate figure possible.

What is a Nil Valuation When Buying a House?

If a survey comes back with a “nil” or “zero” valuation, it simply means that the surveyor has noticed some issues that need to be resolved before a property can be approved for a mortgage. There may be Japanese knotweed in the garden, problems with the home’s cladding or some other matter that will put a lender off.

It’s best to find out why a “nil” value has been applied, then discuss the matter with your estate agent and solicitor. You’ll need to have this information passed on to the seller so that they know that something needs to be fixed.

For further information about the purchasing or sale of property – including ways to sell your home in as few as seven days for up to 75% of its market value – contact Property Solvers today.

Our team of experts will be happy to provide you with all of the information and support you need.