Market Valuation

What is a market valuation?

A Market Valuation will provide a professional opinion of value for a property with respect to the prevailing market at the date of valuation. As such, the surveyor will look to objectively analyse and assess a number of factors which affect the relationship between buyers, sellers, investors and occupiers in a market in order to come to an opinion of value.

The exact basis and purpose of a valuation will dictate various assumptions and disregards that a surveyor will take into account when coming to an opinion of value, however, the generally accepted definition of Market Value from the Royal Institution of Chartered Surveyors (RICS) and The International Valuation Standards Council (IVSC), is:

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

A valuation is not a survey

Although the valuation will be based on objective analysis, it is important to recognise that the methodology behind it is not just a science, but an art, wherein the expertise and intuition of individual experts will play a part, hence why a Market Valuation is a professional opinion of value.

It is important to recognise that a valuation is not a survey and although a Market Valuation may provide a brief overview of the size, condition and location of the property, it is valuation focussed and will not comment further on any defects or other factors that do not materially affect the value of the property.

Choosing the right survey will help highlight any serious problems and advise you of the specific risks before you commit to the process of buying or selling a property.

Arnold & Baldwin Surveyors aims to protect your investment by de-risking the property purchase journey. Having a survey undertaken is a vital step in protecting your investment. There are 2 important reasons to have a survey carried out:

Buyers who do not get a survey face on average £5,750 in repair costs 

Surveys highlight defects that may not be obvious to an untrained eye. Some of these defects can get progressively worse over time if they are not remedied immediately after moving into a property. The Royal Institute of Chartered Surveyors (RICS) found through research that 17% of these cases ended up paying more that £12,000 on average.

Surveys can be used to renegotiate property prices 

Some defects highlighted in a survey can be very costly. This can be taken into consideration when renegotiating the purchase price. On the other hand, defects can be raised to the seller, and you may be able to request these issues be rectified before the purchase is complete.