Chartered surveyor property valuation

6 Reasons Why You Might Need a Valuation Survey

If you are planning to buy a new home and want to use a mortgage to do so, your mortgage lender will usually have a valuation survey carried out on the property to ensure that it is worth the amount that you are going to borrow in order to pay for it. There are also other situations where a mortgage lender might need to have a valuation survey carried out on your property, for example, if you are planning to remortgage your current home.

The purpose of this survey is to help the mortgage lender ensure that they are not putting themselves at any unnecessary risk by lending the money to you, and to ensure that they are only lending the amount of money that the house is worth.

What is a Mortgage Valuation Survey?

A mortgage valuation survey is carried out for the benefit of the lender. It is designed to check whether or not the property is worth the asking price and the amount of money that the buyer has applied for in order to purchase it or remortgage it. These surveys have a limited scope and are designed purely for the lender to determine the value of the property. They are not the same as a home buyer’s survey, which involves inspecting the home for any defects, damage, and hazards. While the valuation survey is largely considered to be beneficial to the lender, it can also have many benefits for the buyer, including providing them with information regarding whether they are going to potentially be paying more than is necessary for the property that they want to buy.

What Will a Mortgage Valuation Surveyor Do?

A lender will usually instruct a surveyor to conduct a mortgage valuation survey. Traditionally, surveyors would need to visit the property in-person to conduct an inspection and verify the value of the home, however, desk-based surveys are becoming increasingly more popular these days, as there is more information available about properties in the surrounding area online. The surveyor may not need to pay a visit to the property at all if they are able to accurately determine the value of the home by using recent online sales data and more information about the local area. In some cases, they may briefly drive by the home to quickly inspect it from the outside and make sure that everything is as expected. However, it is not always possible to predict which type of valuation survey will be carried out on your potential new properties since lenders have various reasons for why they choose either one, particularly when it comes to how much information they have online or how much knowledge they already have about the local area.

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Why a Residential Valuation Surveyor Might Visit the Property?

The type of survey that your lender will instruct a surveyor to carry out on the property will often depend on the level of risk that they expect it to carry. There are several factors that will be considered when the type of survey that will be carried out on the property is decided. The construction and type of the property will be taken into account, and it’s often more common to see physical inspections to value the home in the case of a property that is of unusual layout or construction. Other issues that might lead to issues with the lending of a mortgage will also be considered, for example, if the property is a listed building or if a homebuyer’s report or full structural survey has made the buyer and lender aware of serious issues with the home. A physical visit to the property may also be a preferred option for a lender who does not have much experience with lending in that particular area or if it is difficult to find enough information about the property and the surrounding area online to come up with a detailed report.

Why Do You Need a Chartered Surveyor Property Valuation?

If you are buying a home, a valuation is needed for various reasons, including:

1.     Lending:

The mortgage provider will use the information provided by the surveyor regarding the value of the home to make a final decision on how much they are prepared to allow you to borrow to buy the property. In some cases, this might lead to a down valuation, where the lender is not prepared to lend enough for you to purchase the property.

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2.     Negotiating:

A professional valuation of a property that you are looking to buy could also help you negotiate a lower asking price with the seller. If the seller has priced their property higher than it is worth for any reason, you may be able to use the information provided in the surveyor’s valuation report to convince them to accept a lower offer that is in line with the value and the mortgage amount that your lender has agreed to. In some cases, the seller might be happy to accept a lower offer if they are in a chain already or if they want a quick sale.

If you are planning to sell your home, you may need a valuation for several reasons. These include:

1.     Pricing:

While an estate agent can provide you with a valuation of your property, you may get a more accurate figure from a chartered surveyor. This can often work in your favour if the surveyor deems your home to be worth more than the figure given to you by the estate agents. On the other hand, if the surveyor decides that your home is worth less, this can also benefit you later down the line by preventing issues with the buyer.

2.     Quicker Sale:

A home that is valued correctly is more likely to be sold quickly and smoothly since there is a lower risk of issues arising when the buyer’s mortgage lender conducts a valuation on your home. As a result, there is a lower risk of problems arising throughout the buying process that might stop the buyer from being able to go ahead with the sale, such as a mortgage lender refusing to lend them any more than the value of the home that their surveyor has provided them with.

If you are remortgaging your home, a chartered surveyor can help with a valuation by:

1.     Providing Accurate Figures:

Having a professional valuation of your home can make it easier for you to apply for the correct remortgage amount, helping you avoid potential issues further down the line that might hold the process up.

2.     Smooth Process:

If you need access to the cash quickly when remortgaging your home, investing in a professional valuation by a chartered surveyor can help you ensure a smooth process. You can use the information that they provide in their report to show the lender when you apply, making it less likely that you will run into problems and avoid back and forth negotiating with the lender, which can take time.

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Bear in mind that if you are getting a valuation to sell or remortgage your home, the figure that you are given may not always be the same as the figure that is provided to the lender. This is because the lender might be using a different surveyor for you, and they may view your property in a different light. Different surveyors might provide slightly differing valuations, so it’s worth finding out which surveyors your lender is likely to use and opting for them if you want to make sure that you have the same results.

How to Find a Valuation Surveyor London?

If you need to get a property valued before selling, remortgaging, or even purchasing a new home, there are several ways to find the right valuation surveyor for you. It’s important to make sure that you choose a surveyor or firm that is registered with an accrediting body like the RICS, so one of the best places to check is one the RICS website where you can find chartered surveyors that are approved for conducting valuations and other types of surveys like a homebuyer’s report.

Along with searching the RICS website, you can often get recommendations from friends or family who have sold or remortgaged their home and used a valuation surveyor in the process. You can also ask other property experts like estate agents, conveyancing solicitors, and your mortgage lender for more information on the surveyors that they trust and work with. If you want to use the same surveyor as your mortgage lender in order to get an accurate idea of the type of figure that they will be given when they conduct their own valuation of the home, it’s worth speaking to them to find out more.

A professional valuation of a home by a chartered surveyor is often carried out by a mortgage lender when you are buying a home, but you may also need one when selling or remortgaging a property. A professional valuation can be needed for many reasons, but particularly for making sure that you are paying or lending the right amount.