How to get a valuation for selling a property in London

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Valuation is a crucial step in the process of selling a house. In this article, we go over everything you need to know about the valuation process when selling a property and what a valuation is. Make sure you get a valuation done with the right professionals and you are doing your own due diligence throughout.

What is a property valuation for selling?

A property valuation is a professional assessment of a property’s worth or value in the current property market. It takes into account various factors such as the condition of the property, recent sales of comparable properties in the area, and the overall performance of the local housing market.

Why is a property valuation important?

If you are selling a property and you need to list your property on a listing platform with an accurate valuation, you will need a valuation for selling to be done by a chartered surveyor. This is because they provide the most accurate assessment of a property’s value that a mortgage lender (who will give a mortgage to the buyer of your property) will need.

So, a property valuation is crucial for several reasons. It helps determine the asking price, it helps a buyer secure a mortgage or remortgage and it provides the beginning step to begin the selling process of a house.

It helps determine the asking price

Firstly, it helps sellers determine an appropriate asking price for their property, ensuring that it is neither undervalued nor overpriced. Undervaluing a property could result in a loss of potential profit, while overpricing may lead to the property remaining on the market for an extended period, making it less attractive to buyers.

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It helps when remortgaging

Lastly, a property valuation can be useful for property owners who are considering remortgaging or taking out equity release schemes. It provides a basis for calculating the amount of equity available in the property, which can help owners make informed decisions about their financial options.

When do you get a property valuation?

There are several occasions when a property valuation is necessary including:

When selling a property: Before putting their property on the market, sellers typically obtain a valuation from a real estate agent to determine an appropriate asking price.

For mortgage purposes: Lenders require a valuation to assess the property’s worth before approving a mortgage.

For remortgaging or equity release: Homeowners may need a valuation when considering remortgaging or accessing equity within their property.

For tax purposes: Property valuations may be required for inheritance tax planning, capital gains tax calculations, or other tax-related matters.

When buying a property (rare scenario): Buyers could request a valuation from a lender or an independent surveyor to ensure that the property’s value aligns with the agreed purchase price.

However, for the majority of people, you would want to obtain a valuation when selling a house and this is the most common reason. This is because once this valuation is completed for selling a house, a lender can use that same valuation for assessing a buyer’s mortgage capacity.

a uk house that is having a valuation

Who has the ability to do a property valuation?

There are a number of people who have the ability to do a property valuation but only one type of professional will be able to do a valuation that mortgage lenders take as a trusted number used to price a mortgage. These professionals are Chartered Surveyors.

However, other professionals who are able to conduct a valuation include:

  • Estate agents (without using a chartered surveyor)
  • Mortgage lenders (using their own in-house valuers)
  • Independent surveyors (they will provide impartial valuations)

Looking for a reputable agent to conduct a valuation?

at Cozee we combine more than 25 years of experience of the London property market. Choose us to get the right valuation for your property!

Finding the right surveyors for valuationĀ 

To find the right surveyors for a valuation, it is as simple as visiting the Royal Institute of Chartered Surveyors (RICS) and then using their portal here to search for a surveyor near you.

How much is a valuation?

*According to Halifax, the average cost of a valuation for selling a property was Ā£400. With a cozee, our sales valuations are included within our sales fee, meaning there is no risk up from if you choose to do a valuation with us.

Average Selling Valuation (Halifax Study)* Cozee Properties
Ā£400 FREE

Estimating the value of your property with an agent – step by step

Determining the accurate value of your property is a crucial step in the sales process. Working with a reputable estate agent can help you achieve this goal. Here’s a step-by-step guide to estimating the value of your property with an agent

Setting up an appointment for valuation

The first step in the process is to contact an estate agent and request a valuation. This can typically be done by phone or through their website. During this initial contact, the agent will gather your contact details and set up an appointment for a valuation visit.

Prepare the viewing & documents

Before the valuation appointment, it’s essential to prepare your property and gather the necessary documents. The agent will want to view your property and assess its condition, so it’s advisable to tidy up and ensure that the home is presentable.Ā 

Additionally, gather any relevant documents, such as proof of ownership, details of any leasehold arrangements, and maintenance records.Ā 

A house that is prepared for viewing

Ask for several opinionsĀ 

It’s recommended to seek valuation opinions from multiple estate agents, typically between three and five. This approach will give you a more comprehensive understanding of your property’s value and allow you to compare the estimates provided by different agents.Ā 

Each agent may have a slightly different perspective based on their local market knowledge and experience. However, if you get a valuation from a chartered surveyor, this is the most legitimate and trusted valuation figure.

How many valuations should you get?

You should get between 3 and 5 valuations if you are a buyer. However, the quality of each search is also important. In addition, if you use your own due diligence using other sources than estate agents, you may also be able to reasonably get away with less valuations.

For instance, The Land Registry records the sale prices of properties whenever they are bought or sold. Knowing the previous sale prices can give you an idea of the property’s value over time and how it has appreciated or depreciated.

uk land registry

Wait for you valuation

During the valuation appointment, the estate agent and a chartered surveyor will visit your property and conduct a thorough assessment.Ā 

After the visit, the agent will provide you with a valuation letter detailing their assessment of your property’s worth. This letter will typically include the recommended asking price, as well as information about the agent’s terms and conditions, commission rates, and the length of their agreement to sell your property.

It’s important to remember that the valuation provided by the estate agent is an estimate based on their professional opinion and market knowledge. The actual sale price may differ depending on various factors, such as the demand for properties in your area, the negotiation skills of the agent, and the overall condition of the housing market.

How long does a valuation take?

The visit to a property may take anywhere from half an hour to up to an hour, depending on the range of things to check and the size of the house.

How long is it valid for?

Once this valuation is done, you will be able to use it as an accurate assessment of the property’s value for up to 6 months.

Looking for a reputable agent to conduct a valuation?

at Cozee we combine more than 25 years of experience of the London property market. Choose us to get the right valuation for your property!

What should a valuation letter include?

A valuation letter is a comprehensive document that provides an estimate of the value of a property. It should include the following information.

Property details: The letter should begin with a description of the property being valued, including the address, size, age, condition, and any unique features.

Owner details: The name and identification of the property owner should be clearly mentioned.

Purpose of the valuation: The letter should specify the purpose of the valuation, such as for visa application, mortgage lending, taxation, legal proceedings, or sale purposes.

Valuation approach: The letter should explain the methodology used to determine the property’s value, such as the comparative approach, market value, government circle rate, income approach, or cost approach.

Market analysis: The letter should include an analysis of the local property market, including recent sales of similar properties in the area, trends, and demand and supply factors.

Property inspection: The letter should describe the inspection process, including any significant findings or issues that may affect the property’s value.

property that is being viewed and inspected

Assumptions and limitations: The letter should disclose any assumptions made during the valuation process and any limitations on the accuracy of the valuation.

Valuation results: The letter should provide a clear indication of the estimated value of the property, including any adjustments made to the value based on factors such as location, condition, and other relevant variables.

Supporting documentation: The letter should include supporting documentation such as photographs, maps, and relevant market data used to support the valuation.

Conclusion and recommendations: The letter should conclude with a summary of the findings and any recommendations for further actions, such as repairs or renovations, to increase the property’s value.

Credentials and qualifications: The letter should include the qualifications and credentials of the valuer, including any professional affiliations and licences.

What should NOT be included in a property valuation?

While the process of a valuation is extensive, the report does not include many of the other things that you should do your due diligence on when selling. These things can include but are not limited to:

  • Taking professional photographs to list the property professionally on listing platforms
  • Getting an EPC and an EICR check
  • Conducting Anti Money Laundering checks on the seller
  • Putting a floor plan from an architect or from the photographer online
  • Receive and negotiate on offers

Does this list look overwhelming?

Cozee go through the entire selling process and for just a 1.5% fee ā€“ including valuation

What should you do if you are not happy with your valuationĀ 

If you are not satisfied with the valuation provided by the surveyor or estate agent, there are a few options you can consider

Consider if you are judging your property price correctly

It’s essential to be objective about your property’s value. If multiple valuations from professionals align with a lower value than you expected, it might be worth considering if you have overestimated the property’s worth.

judging during valuation

Remortgage and invest elsewhere

If you are unhappy with the valuation and believe your property is worth more, you might consider remortgaging and investing the equity in another property or investment opportunity.

Seek a second opinion

You can obtain a valuation from a different surveyor or estate agent to compare the estimates and gain a better understanding of your property’s value.

Get a second opinion

if you need a second opinion from leading estate agents or want to check out investment opportunities for new builds

Improve the property

If the valuation is lower due to the condition or lack of updates, you can consider making improvements or renovations to increase the property’s value before seeking a new valuation.

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  • More than 25 years of experience combined
  • We help you focus on your objective (investment, 1st time buy)
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