What is the Difference Between a Market Appraisal and Valuation?

For anyone thinking of selling property in Llangefni, Bangor, Caernarfon or Holyhead, understanding how much your home will sell for is probably your biggest concern. Maybe you’re selling to move to bigger property or downsizing for your retirement. Perhaps you’re selling an inheritance or investment. Whatever your motivation, the home’s current value is the key to your future plans. You’ll hear the terms ‘valuation’ and ‘market appraisal’ bandied about a lot. But while they may seem interchangeable, they’re not. We look at the crucial differences between a market appraisal and a formal valuation and explain when and why you might want to pay for the latter.

market appraisal vs valuation

What is a valuation?

A valuation – also called a Red Book Valuation, full valuation or formal valuation – is a type of inspection/survey that is carried out by an independent person, who may not necessarily be an estate agent. The valuer should be suitably qualified and registered with the Royal Institution of Chartered Surveyors (RICS). They will have professional indemnity insurance against making an incorrect valuation and you will be charged a fee for the valuation.

The chartered surveyor will base the valuation on their professional judgement, knowledge and research of the local market, alongside the guidance contained in the RICS ‘red book’ of best practice. They will also consider your home’s condition, the recent sale price of similar properties in the area and current market conditions. A formal valuation is not, however, the same as a full structural survey or home buyers report.

Why would I need a formal valuation?

Valuations are usually required for matrimonial matters, estates in probate (where a death has occurred) or by mortgage companies before they approve a loan, to make sure that the property is worth what you’re paying for it. You’re not legally obliged to have a full valuation when working out whether inheritance tax is owed on a property (probate), but you may wish to do so to make sure you pay the correct tax. It can also be useful if capital gains tax is owed on a second property. A formal valuation may be required if there is a dispute around the property that could end up in court.

What is a market appraisal?

A market appraisal is carried out by an estate agent, usually with a view to marketing and selling the property for you. Most estate agents are not surveyors and are giving an opinion of how much the property could be marketed at and then possibly sell for rather than an accurate opinion on market value that could stand up in court.

Although most agents are not chartered surveyors and its important for you to know that not all agents are even qualified – make sure when you ask for an agents opinion, that you select an agent who has both the experience and qualification. e.g. Members of Property Mark NAEA or The Guild of Property Professionals.

The estate agent’s market appraisal will be one part of their pitch to you as a seller, which would also include their suggested marketing strategy, recommended method of sale and any advice on making the property easier to sell – such as decluttering or sprucing up the home.

Estate agents will base the appraisal on their knowledge of the local market, recent sales data and current conditions as well as things about your home that their experience tells them will have buyer appeal – a great garden, close proximity to in-demand schools or good transport links. They will also base the appraisal on your aspirations as a seller – whether you’re looking to move quickly, if you’re part of a chain or whether you are happy to wait longer for the right offers.

market appraisal

What about instant valuations?

Some estate agents often have an online tool on their website offering an instant valuation. For many sellers this is one of the first steps in taking the decision to sell and setting a budget for a new property. Instant valuations give you an idea of the price you could achieve. They are not fool proof, and should be considered alongside other research such as recent sold prices of similar properties and properties for sale like yours. But they are a good start and an initial broad guide on price. Find our instant valuation tool now.

When should I choose a market appraisal?

If you’re thinking of selling, a market appraisal is the perfect next step after an online instant valuation. The appraisal will give you a more accurate idea of a realistic selling price in current conditions. It will come with advice from your estate agent about maximising your chances of a sale and making the most of your home. It is also a chance for you to meet the agent and find out more about them and their record of selling homes like yours in the area. It’s advisable to be wary of any that value your home much more highly than you’d expect from your other appraisals and recent sold prices.

What happens if the market appraisal is different to a valuation?

Market appraisals and full valuations are quite different so it is possible that a property’s worth could be assessed differently by a surveyor and a real estate agent, particularly in the UK’s recent volatile property market. The difference may not be an issue unless your buyer is applying for a mortgage and the property has been valued more conservatively by their surveyor. In this case their lender may need them to make up the shortfall. If the buyer can’t afford this, you may need to renegotiate on price to ensure the sale goes through – or request they have a second valuation if you think it doesn’t reflect the current market. This is where a local professional agent will assist you and demonstrate their true value in helping keeping your sale alive.

Now you know more about full valuations v market appraisals, as qualified estate agents and Chartered Surveyors it could be best to talk to us about your next steps. Book an appointment for an appraisal of your home today.

Free Instant Valuation

Are you looking to sell or let your property? Take the first step and find out what your property is worth with a free no-obligation instant valuation.

Got a question?

Want to discuss something more specific?
Request a call back with one of our negotiators.

Request a Call Back

"*" indicates required fields

Name*

View our privacy policy regarding website enquiries.

TPPUK

Williams & Goodwin The Property People are members of the Guild of Property Professionals, National Association of Estate Agents, Association of Residential Lettings Agents, National Association of Valuers and Auctioneers and are Chartered Valuation Surveyors we are members of a National Network of approximately 800 independently owned and operated Estate Agents.

Show More...

Related Post

Updates: 7 Mins Read

Conveyancing Fees Wales: A Guide

If you’re weighing up the cost of a Wales house move, we help you factor in the conveyancing fees you’ll need to budget for and answer some of your...

Updates: 9 Mins Read

How to Sell a House in Wales

If you’re looking to move house in North Wales, you might be wondering if the time is right. As a leading estate

Updates: 10 Mins Read

How Much Are Estate Agent Selling Fees In Wales?

 How much are estate agent fees in Wales? To achieve the maximum sale price, most homeowners need some help selling their homes

Matthew Fox
A great estate agent that go the extra mile to make sure our sale went through with no fuss or delays.
Anne Grossett
Always polite and professional, helped with questions queries, great friendly service, would recommend
Christopher McNaught
Amazing service from start to finish. Everything was fast and efficient from the offset, our house was sold within 72 hours of going on the market. Would definitely recommend Williams & Goodwin for anyone thinking of selling their home.
David Creen
Very happy with the service they provide.
Chris Moore
Everyone I dealt with was extremely helpful, polite and cheery. Nothing was too much for them and they carried out any requests that were needed. Fantastic team.
KDP
I was recommended by a neighbour who had sold their house through Williams & Goodwin, after they’d used a previous local agent with whom they had little interest after one year. With W & G, their house was sold within a few weeks. The service was excellent and the staff very friendly and k...
Chris Squires
Dealt promptly and efficiently with each stage of the sale. Gemma (at the Llangefni office) was outstanding, an asset to the company.
Kyle Williams
Great company, quick service and all staff were excellent during the sale of our house.
Elin jones
Diolch i bawb yn Williams a Goodwin am eich gwasanaeth ac ymdrech i werthu ein ty! A diolch i Gemma yn arbennig am ymateb i phob ebost a galwad yn brydlon a cadw ni ben ffordd. Diolch!
Scott D
During the purchase of our property. We dealt with the Holyhead branch. From our first viewings (not just the property we bought), they were very professional and dealt with all our enquiries fast and efficiently. Unfortunately, part way through our purchase, the sellers of the property we were purc...
art-logo google-logo
Customer Reviews 5
Based on 1057 reviews
English