What is a private property valuation and when might I need one?
A private property valuation is an essential service offered by chartered surveyors. You’ll get a professional’s opinion on how much money your potential new home is worth. You can use this information to adjust your offer if necessary.
Private property valuations are also extremely handy in estate-management situations such as probate, securing large business loans, or filing for bankruptcy/divorce.
Whatever your situation, we’re here to help. Our experienced GB Home Surveys chartered surveyors have carried out hundreds of RICS Valuations over the years.
We’ve put together a brief overview of private property valuations on this page. We hope you find it useful. Don’t hesitate to get in touch if you have any further questions!
What is a private property valuation vs a mortgage valuation?
You might be familiar with a standard mortgage valuation. These take place in almost every home sale requiring a mortgage.
A mortgage valuation involves a surveyor going to the property in question and assessing its value independently of the estate agent and buyer. The number they come up with is then compared against the sale price and mortgage loan sum.
It essentially functions as a check that you’re paying a reasonable amount for the house. If they conclude that the home is worth much less than what you’re offering/asking for in a loan, they might withdraw their mortgage offer. This leaves buyers in a real predicament: push through with another provider (risking overpaying) or pull out?
Although mortgage valuations have secondary benefits to a buyer (you don’t want to pay more than the property’s worth), they’re really conducted for the bank or lender. They want to protect their assets, something that’s very difficult to do if a building is overpaid for.
When do you need a private property valuation?
We recommend getting a private property valuation whenever you purchase a home. This unbiased professional perspective sometimes highlights a price difference you might not have considered. In most cases, you’ll also have a mortgage valuation carried out separately.
However, you can also get a private property valuation in other cases – when the bank probably won’t carry out a survey on your behalf. These include the following:
- Probate
- Other asset-valuing circumstances
- Shared ownership
- Help to Buy schemes
- Right to Buy
In these cases, having a skilled individual value a home is priceless. We also recommend getting a more detailed home survey so you’ll be aware of any faults or hidden, unpleasant surprises.
Are private property valuations worth it?
In contrast to mortgage valuations, private property valuations are instructed by you (the buyer) – not the mortgage provider. In other words, the surveyor checks that you’re paying a reasonable amount rather than protecting the lender and its loans.
This immediately makes a big difference, although it might seem small. For example, we typically find that buyers have more access to information about why surveyors reach their decisions in private valuations.
Here at GB Home Surveys, we’re regulated by RICS, the governing body for chartered surveyors. This means we’re bound to stricter standards and professional codes than other independent surveyors. Of course, this is highly dependent on the mortgage valuation surveyor.
Many mortgage providers and banks offer mortgage valuations for free. It’s often seen as a necessary part of business, and they’ll absorb the cost. That isn’t always the case, though; we’ve heard of prices reaching a few hundred pounds.
Private property valuations also come at a price. For us at GB Home Surveys, they tend to come in at around £300 to £450. Check out our free Valuation Quote Calculator tool for an obligation-free quote (which we’ll stick to).
In general, we find that most customers opt for a RICS Home Survey Level 2. This goes into much more detail on the house’s condition, helping you avoid buyer’s regret and prepare for any potential future problems.
For more information about the RICS home surveys we carry out (such as what’s included), check out the page on our website. We’d be delighted to offer a commitment-free helping hand if you still need a little extra clarification. Use the form below to contact us, and we’ll get back to you as soon as possible.
