Are you not sure what a property valuation involves? Well, you’re not alone!

Using a property I recently worked on as a case study, I will help you understand a Valuation Report with a step by step run through of the survey and what you should expect to receive. Below is each section included in the market valuation and a brief description of what will take place.

Definition of Market Value – the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

Instructions

Starting with a list of instructions, you will be made aware that the report is being carried out by the chartered surveyor and on the specific date it will be done. Listing the address, the solicitors that are in partnership and the actual report details, I will also confirm that I am not aware of any conflict of interest from the property or the interested parties.

“Independent property valuations are only performed by chartered surveyors. It is a common misconception that Estate Agents value your property for you”, House Prices Blog.

Basis of Valuation

This section of the report will detail what survey or report is being carried out. In this instance, it will say Market Value (MV) as defined in the Royal Institute of Chartered Surveyors Valuation Standards.

Inspection

This will simply date the period of the inspection.

Location

With the location in mind I will then describe in detail the deciding factors for the property and the reasons why the property might be deemed desirable. In this case study, the property was located on a main road near domestic and commercial properties, had a good range of local facilities in the town centre and the area it was positioned in was classed as satisfactory.