Property valuation can look mysterious from the outside—especially when two people give two different numbers. In reality, valuing a property is a structured process that combines evidence, professional judgement, and a clear understanding of what the property would realistically achieve in the market.
A surveyor’s valuation is not a guess. It is a reasoned opinion based on:
- what similar properties have sold for,
- how your property compares,
- the local market conditions at the valuation date, and
- any factors that materially affect value (condition, legal title, lease terms, defects, restrictions).
Below is a detailed, practical explanation of how valuations are carried out and why values can differ.
(General information only. Valuation approach and report format vary by instruction and property type.)
1) The starting point: “What type of value do you need?”
Before any numbers are produced, the valuer must understand the purpose of the valuation, because that determines the appropriate basis. Common examples include:
- Market value (typical for sales, buyouts, planning decisions)
- Probate value (market value as at the date of death)
- Matrimonial value (often market value at a specified date, sometimes with further context)
- Mortgage valuation (a lender-focused view, often conservative and risk-based)
- Insurance reinstatement cost (not market value—cost to rebuild, very different)
Getting the purpose right matters because the “right figure” depends on what the valuation is for.
2) Information gathering: what the valuer needs to know
A valuation is only as good as the information behind it. Typically, the valuer gathers:
A) Property basics
- address and location context
- property type (flat, terrace, detached, conversion, new build)
- accommodation (bedrooms, bathrooms, reception rooms)
- approximate size/floor area (where known or measurable)
- parking, garden, outbuildings, storage
B) Condition and quality
- age and construction type (brick, timber frame, non-standard)
- maintenance level (modernised vs dated)
- visible defects (damp, cracking, roof issues)
- quality of finishes (basic, mid-range, premium)
C) Tenure and legal factors
- freehold vs leasehold
- for leasehold: lease length, ground rent, service charge, major works
- restrictions (alterations, subletting, pets)
- rights of way, access arrangements, title constraints (where known)
For flats, legal and lease terms can change value materially.
3) Inspection: what a valuer looks at on site
Many valuations are supported by an inspection (though some instructions may be desktop/drive-by).
On inspection, a valuer typically assesses:
- layout efficiency and “saleability”
- room sizes and natural light
- condition of key elements (roofline visible from ground, windows, obvious damp markers)
- quality of kitchen/bathroom and overall presentation
- obvious signs of movement (cracks, distortion)
- heating type and general services (where visible)
- external factors: aspect, road noise, nearby uses, parking reality
This is not always a “full survey,” but it informs value and risk.
4) The core method: comparable sales (the “evidence engine”)
For most homes, valuation is driven primarily by comparable sales evidence—recent sale prices of similar properties in the area.
A valuer will look for comparables that match on:
- location and micro-location (street, side of road, outlook)
- property type and style (terrace vs semi, conversion vs purpose-built)
- size and accommodation
- condition and specification level
- parking/outside space
- tenure and lease length for flats
Why sold prices matter more than asking prices
- asking prices are targets
- sold prices reflect what buyers actually paid
A valuer typically uses multiple comparables and weighs them, rather than relying on one sale.
5) Adjustments: how differences are accounted for
No two properties are identical, so valuers make reasoned adjustments for differences such as:
A) Size and layout
- extra bedroom or bathroom
- better flow/open-plan layout
- loft conversion or extension (and whether it appears compliant)
B) Condition and specification
- refurbished vs dated
- quality of kitchen/bathroom
- level of maintenance
C) Location nuances
- corner plots, views, busy roads, parking pressure
- proximity to stations, schools, or undesirable uses
D) Tenure and lease terms (flats)
- shorter lease length can reduce value
- high service charges or onerous ground rent can reduce buyer appetite
- pending major works can influence value
E) Defects and risks
- signs of damp or movement
- non-standard construction
- legal restrictions or access complexities
Adjustments aren’t a simple formula in most cases—they’re professional judgement informed by market behaviour.
6) Market conditions and timing
Valuations are time-sensitive. A valuer considers:
- whether the market is rising, flat, or slowing
- supply and demand locally
- seasonality (to a degree)
- interest rate environment and buyer affordability (in broader terms)
For a retrospective valuation (probate or past-date valuation), the comparable evidence is drawn from around the relevant historical date.
7) Sense checks: using more than one lens
A careful valuer will often use “sense checks” such as:
- price per square foot/metre comparisons (as a secondary check, not the only method)
- comparison against nearby sales trends over a period
- checking that the final figure fits the property’s “buyer bracket” in that area
- considering the likely marketing strategy and buyer pool
This helps avoid a figure that looks mathematically plausible but isn’t realistic in the market.
8) Why two valuations can differ
It’s normal to see differences because:
- valuers may select different comparables
- one valuer may assume a higher/lower condition standard
- leasehold details might be unclear or treated differently
- the market may be thin (few good comparables)
- one valuation may be conservative due to risk tolerance (common in mortgage contexts)
A good valuation report explains the evidence and reasoning so the conclusion is transparent.
9) What a good valuation report should include
While formats vary, a strong valuation usually sets out:
- the purpose and valuation date
- the valuation basis and any assumptions
- a description of the property and condition
- summary of the local market context
- comparable evidence used
- valuation conclusion and reasoning
- limitations (e.g., areas not inspected, documents not provided)
This transparency is what makes a valuation “defensible,” not just the final number.
The takeaway
A property is valued by analysing what similar properties have actually sold for, inspecting and understanding your property’s condition and features, adjusting for differences, and applying professional judgement within the context of the local market and the valuation date. The best valuations are evidence-led, transparent, and aligned to the correct valuation purpose.
Need a professional property valuation you can rely on?
Email mail@howorth.uk or call 07794 400 212. Tell us your property type, location, and what you need the valuation for (sale planning, probate, separation, transfer, etc.). We’ll explain the best valuation approach for your situation and what information will help produce a clear, well-supported figure.