What Is a Property Valuation and How Is It Calculated?

If you’re buying, selling, refinancing or acquiring property, a professional valuation can be the difference between overpaying, under-pricing or making a confident, informed decision.

While online tools such as Zoopla and Rightmove, and estate agent appraisals can offer a rough guide, a property valuation carried out by a professional RICS Registered Valuer surveyor provides a far more accurate and defensible assessment of a property’s true value, acceptable to lenders and Homes England for things such as Help to Buy.

In this guide, we explain what a property valuation is, how it’s calculated, when you need one and how AMS Surveys can help.

So…What Is a Property Valuation?

A property valuation is a professional assessment of a property’s market value at a specific point in time. It is carried out by a qualified surveyor using recognised valuation methods, market evidence and an inspection of the property itself.

Unlike estimates or opinions, a formal valuation is based on evidence, professional judgement and experience. It considers not only what similar properties are selling for, but also the condition, location and any risks that could affect value.

…But When Will You Need a Property Valuation?

A professional valuation is commonly required when:

-       Buying a property

-       Selling a property

-       Refinancing or remortgaging

-       Acquiring or investing in property

-       Dealing with legal, tax, or probate matters

In many cases, a valuation provides clarity and reassurance before a major financial decision is made.

How Is a Property Valuation Calculated?

Now let’s look into what you came here for…Surveyors assess multiple factors together to arrive at an accurate and well-reasoned valuation.

Property Location and Market Conditions

Location plays a significant role in determining value. Surveyors consider local market trends, demand, supply and recent activity in the area, alongside wider market conditions at the time of valuation.

Property Size, Layout and Use

Surveyors assess the property’s size, layout and classification, including internal floor area, number of rooms and whether the property is residential or commercial. Functionality and usability can have a strong influence on value.

Condition and Defects

The physical condition of the property is a critical part of the valuation process. Surveyors look for issues such as structural movement, damp, roof defects and general disrepair.

 A RICS Level 2 Survey can provide further insight into a property’s condition, while a more detailed RICS Level 3 Survey may be recommended for older or more complex properties

Defects and required repairs can significantly affect a property’s value and future costs so it’s important to understand these and get them checked by a professional so you can protect yourself from future costs.

Comparable Evidence and Data

Comparable evidence involves analysing recent sales of similar properties in the same area. Surveyors adjust for differences in size, condition and location to ensure the valuation reflects current market behaviour.

How Accurate Are Online Property Valuation Tools?

Online valuation tools can provide a general estimate of the market, known as a market appraisal but they rely on historic data and algorithms, not the specific nuances of the local market mentioned above. They cannot assess internal condition, hidden defects, or recent alterations.

Our professional surveyors can assess factors that online valuation tools cannot and provide you with the overall value of the property.

As a result, online estimates should not be relied upon for major financial decisions.

Property Valuations for Buying, Selling and Acquisition

Valuations for Buyers

For buyers, a valuation helps avoid overpaying, highlights potential risks and supports negotiation. Many buyers choose to combine a valuation with a homebuyer survey for added reassurance.

Valuations for Sellers

For sellers, a valuation supports realistic pricing, reduces the risk of down-valuation and strengthens confidence when marketing a property.

Valuations for Acquisition and Investment

For investors and acquisitions, valuations help assess true asset value, identify hidden risks and support funding decisions. We offer Commercial Building Surveys to support this process.

Common Misconceptions About Property Valuations

-       A valuation is the same as an estate agent’s appraisal

-       Online estimates are just as accurate

-       Valuations always come back lower than expected

-       The cheapest valuation is always sufficient

Professional valuations offer independence, accountability and evidence-based conclusions.

Why Instruct a Professional Surveyor for a Valuation?

(Our) Surveyors are well trained to assess property objectively and independently. Their valuations are evidence-based, defensible and prepared using recognised professional standards.

This ensures our valuations can be relied upon for buying, selling, lending and legal purposes.

How AMS Surveys Carries Out Property Valuations

AMS Surveys provides accurate, independent property valuations for residential properties.

Our experienced surveyors carry out thorough inspections, assess market evidence and produce clear, easy-to-understand reports tailored to each client’s needs.

What Happens After You Receive Your Valuation?

Once received, your valuation can be used to support negotiations, guide decision-making and determine whether further surveys are required.

It provides a clear foundation for moving forward with confidence. We are here to help and guide you throughout the entire process!

Key Takeaways

-       A property valuation provides an evidence-based assessment of market value

-       Surveyors consider crucial factors such as the condition, location and market data

-       Online tools offer estimates, not professional opinions

-      Valuations support confident buying, selling and acquisition decisions

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Frequently Asked Questions About Property Valuations

What is the difference between a property valuation and a survey?

A valuation assesses market value, while our surveys focus on condition and defects in greater detail.

How long does a property valuation take?

Inspection times vary, at AMS Surveys, we typically are on site for an average of around 30 or more minutes with reports typically issued within as quick as 5 days or less after analysis is complete.

Are property valuations legally binding?

They are professional opinions based on clear written evidence, not guaranteed sale prices.

Do lenders accept independent valuations?

Some do, though lender requirements vary.

Are online valuations accurate?

They provide estimates only and cannot assess condition or defects. We offer professional, accurate valuations and can offer further surveying services alongside your valuations to ensure absolute confidence.

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Book a Property Valuation with AMS Surveys

If you’re buying, selling, refinancing or acquiring property, a professional valuation can provide the clarity you need.

Get an Instant Quote Here.

AMS Surveys offers accurate, independent valuations carried out by experienced surveyors.

Get in touch today.