A guide to market appraisals and valuations

So, you're looking to sell or let your property? One of the first steps is establishing your property’s value by obtaining a market appraisal/valuation. In this guide, we’ll discuss what this involves, the key differences between a market appraisal vs valuation, and how to decide which one is right for you.

In the property world, you’ll often hear people, including estate and lettings agents, say “valuation” when they’re actually talking about a "market appraisal." Although a market appraisal is the correct term for when an agent evaluates your property and recommends a marketing price, "valuation" is often used as a convenient shorthand.

What is a market appraisal?

A market appraisal is basically an estimate of what your property might be worth, usually done by an estate or lettings agent. This step is really important because it gives you a clear idea of how much you could realistically sell or rent your property for in today’s market. But what actually goes into a market appraisal? Let’s break down some of the main things estate and lettings agents look at to give you an accurate estimate:

• Average selling and lettings prices of property in the same area.
• Property conditions and unique features.
• Market trends and economic factors.
• Location and amenities.
• Demand for the property.

What is a valuation?

A valuation is a formal assessment of your property's market value, typically done by a professional surveyor or valuer. Unlike a market appraisal, which is more of an informal estimate from an estate or lettings agent to help you set an asking price, a valuation is a detailed, documented process that's really important in financial and legal situations. Here are some situations when you’d need a valuation:

• Obtaining a mortgage.
• To transfer a property to somebody else.
• For taxation purposes.
• Compulsory acquisition.
• Property insurance.
• Investment analysis.
• Settling legal matters (probate, divorce, etc.).

Market appraisal vs valuation

When selling your home, it’s important to know the difference between a market appraisal and a valuation.

A market appraisal is what you need when you’re just starting out and want a rough idea of what your home could sell or rent for. On the other hand, a valuation is needed for official transactions and legal matters where a precise, formal assessment is required. Knowing these differences will help you choose the right option for your property needs.

How much does a market appraisal/valuation cost?

Market appraisals

At Andrews, we get how important it is to start your home selling or letting journey on the right foot. That’s why we offer free market appraisals. We’re here to give you a clear idea of what your property might sell or rent for, so you can set a fair asking price. Our goal is to help you make the best possible start in the market.

Valuations

When you need a formal, detailed assessment of your property's market value, we've got you covered with professional valuation services through a trusted third-party provider. The cost can vary depending on your property's size, location, and type, but our experts make sure the valuation is thorough and accurate, meeting all your financial and legal requirements.

How long should a market appraisal take?

Typically, our experienced estate and lettings agents can complete a thorough market appraisal within 1 to 2 hours. During this time, we’ll assess key factors like the condition of your property, any unique features, and the demand and prices of similar properties in your area.

A professional valuation is a bit more in-depth and usually takes around 3 to 5 hours. It involves a detailed look at your property, along with an analysis of market trends and any legal or financial factors. After the inspection, our expert valuer will take some extra time to put together a detailed report, and we'll share it with you once it's ready.

To sum it up, knowing when to go for a market appraisal or a valuation helps you make smart choices that fit your needs. Whether you're setting an asking price or need a formal valuation for legal stuff, having the right info will let you tackle the property market with confidence.

At Andrews, we're here to support you every step of the way with our expert services. Book your free market appraisal here.