Should I get a valuation or a survey?

What is a valuation?

A property valuation is an estimate of a property's market value. Several factors influence this estimate, including the property's size, location, and condition. Valuations can be performed by estate agents or by surveyors following the Royal Institution of Chartered Surveyors (RICS) guidelines. Key factors in a valuation include:

• Location Size and layout
• Number of bedrooms and bathrooms
• Outdoor space
• Potential for development or expansion
• Proximity to amenities, schools, and infrastructure
• Unique features and characteristics of the property

Keep in mind that an RICS valuation isn't the same as a survey or a mortgage valuation. When applying for a mortgage, a surveyor will visit the property on behalf of the lender to ensure the property’s value aligns with the buyer’s offer.

What is a Survey?

A survey provides a detailed, written assessment of the condition of a property. Before proceeding with a purchase, it's wise to arrange a survey. Surveys focus on the structure and condition of a property, identifying issues that may need immediate attention or could require future repairs. A survey helps you understand what you're buying and the potential costs of repairs or maintenance down the road.

There are various types of RICS surveys available to suit different budgets and property types. The most basic option is the Level 1 Survey, which offers an overview based on a visual inspection. Findings are presented using a traffic light system, with red indicating urgent issues.

A Level 2 Survey provides a more detailed evaluation, highlighting significant issues and their potential impact. The most thorough option, the Level 3 Survey, covers all aspects of the property, including services, and offers recommendations for any necessary repairs. In some cases, you can add a valuation to a Level 2 survey.

Do I need a valuation or a survey?

Property Valuations: You may need a valuation for various reasons, such as:

• Selling your property
• Repaying or selling a property purchased under the Help to Buy scheme
• Division of assets in divorce proceedings
• Purchasing a larger share of a Shared Ownership property
• Acting as the executor of a will containing property assets

Surveys: If you're a prospective buyer, it's highly recommended to arrange a survey before committing to the purchase. Surveys reveal hidden issues that may not be visible during viewings and provide insight into the potential costs of repairs. They are particularly valuable if you're buying an older property or planning a major renovation, as they can help you prioritize essential repairs and avoid unexpected expenses.

While property valuations estimate a property’s market value, surveys give a comprehensive understanding of its condition. For those looking to buy an older property or take on a fixer-upper, a detailed survey is an essential step in the process.