Property Valuation Time: Quick Guide to Get Accurate Estimates

A property valuation is an assessment of a property's market value. This valuation may be essential for various reasons, including selling, buying, remortgaging and taxation. Valuations can be done through different methods, such as automated valuation models and in-person surveys.

What is an Automated Valuation Model?

An Automated Valuation Model (AVM) is a technology-driven method used to estimate the value of a property. AVMs leverage various data sources and complex algorithms to provide quick property valuations without needing a physical inspection. These models are commonly used by banks, real estate professionals and online property platforms to offer instant property value estimates.

How Do AVMs Work?

AVMs combine several data points and statistical models to generate property valuations. Here is how they typically work:

1. Data Collection: AVMs collect data from multiple sources, including publicly available property records, recent sales data and market trends.

2. Comparable Sales Analysis: AVMs use recent sales data for comparable properties to assess a property's value.

3. Market Trends: AVMs incorporate current market conditions and trends to adjust valuations accordingly.

4. Property Characteristics: The valuation considers specific property characteristics, such as location, size, age and condition.

5. Algorithm and Machine Learning: The collected data is processed through sophisticated algorithms and machine learning techniques to generate a value estimate which is as accurate as possible.

Types of Property Valuations

1. Market Valuation: Conducted by estate agents to determine the likely selling price.

2. Mortgage Valuation: Required by lenders to ensure that the property's value covers the loan.

3. Surveyor Valuation: A detailed assessment by a RICS (Royal Institution of Chartered Surveyors) surveyor.

4. Desktop Valuation: Done remotely using online data and property records.

What Do Valuers Do in a Valuation?

During a property valuation, the valuer will assess several aspects of the property:

Internal Inspection

- Condition and Age: Assessing the general condition and age of the property.

- Layout and Size: Evaluating the layout, size and number of rooms.

- Fixtures and Fittings: Checking the quality of fixtures, fittings and finishes.

External Inspection

- Structure and Materials: Inspecting the building's structure and the materials used.

- Garden and Outbuildings: Evaluating the size and condition of the garden and any outbuildings.

- Local Area: Considering the location, nearby amenities and overall desirability.

Comparative Analysis

- Market Trends: Comparing the property to similar properties recently sold in the area.

- Local Market Conditions: Considering the current local market conditions and trends.

The Fees Involved

Cost of Valuation

The cost of a property valuation can vary based on the type and thoroughness of the valuation:

- Estate Agent Valuation: Typically, free as part of their service to win your business.

- Mortgage Valuation: Costs range from £150 to £1,500, depending on the property’s value and lender.

- RICS Surveyor Valuation: Generally, between £250 and £600, depending on the complexity and size of the property.

- Online Valuation Tools: These are usually free, providing a quick estimate without detailed inspection.

Additional Costs

Detailed Surveys: More comprehensive surveys, such as Homebuyer Reports or Building Surveys, can cost between £400 and £1,500.

How Long Does It Take on Average and How Long is the Valuation Valid For?

Time Frame for Valuation

- Estate Agent Valuation: Typically completed within a few hours or up to a day of access being provided.

- Mortgage Valuation: Usually takes up to a week, depending on the lender's process.

- RICS Surveyor Valuation: Usually takes 1-2 weeks, including scheduling and reporting.

- Online Valuation: Instant results provided by automated tools.

Validity of Valuation

Property valuations are typically valid for 3 to 6 months but vary based on market conditions and lender requirements. In rapidly changing markets, the validity period may be shorter.

Factors Valuers Consider When Evaluating Your Property

Key Factors

1. Location: Local values and proximity to amenities, such as schools and transport links.

2. Size and Layout: Square footage, number of rooms and their usage, and layout.

3. Condition: Current state of repair and any need for renovations.

4. Market Conditions: Recent sale prices of similar properties.

5. Legal Factors: Leasehold vs. freehold, planning permission and any legal encumbrance.

Where Can I Find Free Online Valuation Tools?

Several platforms offer free online property valuation tools:

Popular Online Tools

1. Zoopla: Provides an estimate based on recent sales data and market trends.

2. Sold.UK: Offers a free house price estimate tool.

3. Mouseprice: Property value estimates based on Land Registry data and market trends.

How to Use These Tools

Enter your property's address and details, such as the number of bedrooms and bathrooms. The tool will then provide an estimate based on comparable property sales and market trends.

HM Land Registry

HM Land Registry offers a service called "Price Paid Data" where you can access information on property transactions across the UK. This can help you estimate the value of properties in your area based on actual sale prices.

Valuation Office Agency (VOA)

The VOA provides property valuations for council tax and business rates. While not directly a tool for home buyers or sellers, it offers insights into property values.

The Role of RICS and the Red Book

RICS

The Royal Institution of Chartered Surveyors sets standards for property valuations and surveys. RICS chartered surveyors are trained to provide reliable property valuations in compliance with the RICS Red Book standards.

The Red Book

The RICS Red Book contains guidelines and ethical standards for property valuations. It ensures that all RICS surveyors adhere to consistent practices and high standards. This guarantees that the valuation you receive is thorough and in line with industry standards.  

A property valuation is an essential step in a property transaction process. The time it takes to complete a valuation can vary from a few hours to several weeks, depending on the method and type of valuation. While fees for valuations can vary, free online tools provide a quick way to estimate your property's value. For the most reliable and comprehensive valuations, consider using a RICS chartered surveyor who adheres to the rigorous standards of the RICS Red Book. Understanding how property valuations work and what they entail can help you make an informed decision about valuation when buying, selling or refinancing.  

FAQ:

Q. How long does a property valuation take?

A. The time it takes for a property valuation can vary. An estate agent valuation can be completed within a few hours or up to a day. A mortgage valuation typically takes a few days to a week, depending on the lender’s process. A detailed RICS surveyor valuation usually takes about 1-2 weeks to schedule and complete. Online valuations using AVMs provide instant results.  

Q. How much does a property valuation cost?

A. The cost of a property valuation depends on the type of valuation. Estate agent valuations are typically free. Mortgage valuations range from £150 to £1,500, depending on the property value and lender. RICS surveyor valuations generally cost between £250 and £600. More comprehensive surveys like Homebuyer Reports or Building Surveys can cost between £400 and £1,500.  

Q. How long is a property valuation valid for?

A. Property valuations are generally valid for 3 to 6 months, though this can vary based on market conditions and lender requirements. In rapidly changing markets, the validity period may be shorter.  

Q. What factors do valuers consider when evaluating a property?

A. Valuers consider several factors, including the property's location, size, layout, condition, age and the quality of fixtures and fittings. They also look at external factors such as the structure and materials of the building, garden size, outbuildings, and the local area’s amenities. Comparative sales data and current market conditions are also taken into account.