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.