A property valuation is a professional opinion of what a property is worth at a specific point in time, based on evidence from the market and the individual characteristics of the home. It turns a complex question—“what could this realistically sell for?”—into a clear, structured figure you can use for decisions such as buying, selling, refinancing, probate, divorce, tax reporting, or resolving a dispute.
A valuation isn’t a guess and it isn’t just an online estimate. A good valuation is built on:
- market evidence (especially comparable sold prices),
- a clear understanding of the property’s features and condition,
- the local micro-market and buyer demand, and
- transparent assumptions and limitations.
1) What a valuation is trying to measure: “value” depends on purpose
The most important point is that “value” can mean different things depending on the purpose. A proper valuation starts by defining:
A) The valuation purpose
Common purposes include:
- selling or buying (price guidance / negotiations)
- remortgaging or financial planning
- probate and Inheritance Tax (value at the date of death)
- divorce and separation (current or past-date value)
- Capital Gains Tax and other tax events (often retrospective values)
- shared ownership staircasing or sale
- Help to Buy equity loan redemption
- disputes between owners, beneficiaries, or partners
B) The valuation date
A valuation always has a date. Even in a steady market, values can change; in faster markets, the date can matter a lot.
C) The valuation basis
Most people mean “open market value,” but there are other bases, such as:
- insurance reinstatement cost (rebuild cost—not market value)
- investment value (linked to income/yield for some properties)
- specific assumptions required for a legal or tax scenario
A good valuer makes it clear which basis is being used and why.
2) What information is considered in a valuation?
A valuer looks at both measurable facts and the features that influence buyer behaviour.
A) Property features
- location and micro-location (street, outlook, noise)
- type (house, flat, conversion, purpose-built)
- accommodation (rooms, layout, usability)
- size/floor area (where relevant)
- parking and outside space
- floor level and lift access (for flats)
B) Condition and defects
Condition affects both price and demand. A valuation considers:
- general maintenance and presentation
- quality and age of kitchen/bathrooms
- visible defects (damp, leaks, cracking, roof issues)
- the level of uncertainty/risk defects introduce for buyers
C) Legal and tenure factors
For houses and flats, but especially for flats:
- freehold vs leasehold vs share of freehold
- lease length (unexpired term)
- ground rent and review terms (if applicable)
- service charge levels and planned major works
- restrictions (subletting, pets, alterations)
These factors can materially shift value even when two properties look the same inside.
3) How a valuation is usually carried out
While the exact method depends on the property and purpose, most residential valuations follow a structured approach.
Step 1: Confirm the brief
The valuer confirms:
- purpose, valuation date, and basis
- the property type and any special factors
- any documents needed (particularly for leasehold)
Step 2: Inspection (where instructed)
An inspection helps the valuer understand:
- layout, natural light, and saleability
- overall condition and specification
- visible defects and red flags
- outside space, access, parking, outlook and noise
- the building/communal areas for flats
Not all valuations involve a full structural survey, but inspection is often important for accuracy.
Step 3: Comparable sales research
For most homes, the main evidence is:
- similar properties that have sold in the area (not just asking prices)
The valuer selects comparables that align with:
- location and property type
- size and accommodation
- condition and finish
- parking/outside space
- floor level/lift (flats)
- lease terms and running costs (flats)
Step 4: Analysis and adjustment
No two properties are identical. The valuer makes reasoned adjustments for:
- size and layout differences
- condition and modernisation level
- outside space and parking
- outlook/noise
- lease length and service charge impacts (where relevant)
Step 5: Valuation conclusion and reporting
The report typically states:
- the valuation figure and valuation date
- how the figure was reached
- key evidence and reasoning
- assumptions and limitations
That transparency is what makes a valuation usable and defensible.
4) Valuation vs appraisal vs survey: key differences
Estate agent “valuation” (market appraisal)
Usually:
- a pricing recommendation for marketing
- influenced by strategy (quick sale vs premium price)
- often less formal and less detailed
Mortgage valuation
Usually:
- carried out for the lender, not you
- focused on risk and security
- may be conservative
- often limited in scope
Condition survey (Level 2 / Level 3)
This examines condition and defects in detail. Some surveys include a valuation, but a survey is primarily about condition, not value.
A property valuation is specifically focused on what the property is worth, although condition plays a major role in that conclusion.
5) Why valuations can differ
Valuation is informed judgement. Differences often arise because:
- different comparables were selected
- condition assumptions differ
- leasehold information differs (or is missing)
- the property is unusual, making evidence harder to match
- market conditions changed between valuation dates
A strong valuation reduces uncertainty by explaining evidence and assumptions clearly.
6) What makes a valuation “good” and reliable?
A good valuation is:
- clear on purpose, basis, and valuation date
- evidence-led, using strong comparable sales
- realistic about condition and defects
- careful with leasehold and legal factors
- transparent about assumptions and limitations
- written clearly enough to be relied upon by third parties if needed
The takeaway
A property valuation is a structured, evidence-based opinion of a property’s value at a specific date, produced to support important decisions. It considers the property’s features, condition, legal context, and local market evidence—especially comparable sales—to arrive at a defensible figure you can use with confidence.
Need a professional property valuation?
Email mail@howorth.uk or call 07794 400 212. Tell us your property type (house/flat), location, and what you need the valuation for (sale planning, purchase advice, probate, divorce, tax, buyout, Help to Buy, shared ownership, etc.). If it’s a flat, sharing the lease length and service charge details will help us advise the most accurate and efficient approach.