Should I get a Valuation or a Survey?

When buying or selling a property, it’s common to hear terms like ‘valuation’ and ‘survey’ used interchangeably. However, it’s important to understand the distinction between the two. Whether you’re looking to purchase a new home or are waiting for a sale to go through, knowing the differences can help guide your decision-making. In this blog, we discuss what surveys and valuations are, so you can determine which one suits your needs.

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.

Winkworth is a member of Laurel Leaf Networking.