RESIDENTIAL PROPERTY VALUATION

"Valuation" in this context, and in the context in which McDonald & Chivers operates, is the estimation of the current open market value of a certain property at a certain date. This is the estimated price that we consider it would sell for on the open market at the date of inspection, on the assumption that the property had been marketed for a certain period, usually 12-16 weeks or so. This time period will vary depending on the type of property concerned and the buoyancy of the property market. A superb 2 bedroom Maisonette, with walled garden, in an excellent area of Bath may sell within a few weeks, a nasty semi-derelict house in a poor area may take some months.

Although valuations can be carried out for several reasons (for mortgage lending purposes, for Probate, for matrimonial proceedings or just for a property owner wishing to know the value of a property), the basic principle is the same. The valuation provided is the highest figure that we consider could be achieved on the open market at the time of inspection assuming a reasonable marketing period for that type of property.

There is a saying in the profession that "a valuation is only as good as the comparables that support it". A "comparable" in valuation-speak is another similar property in the general area of the subject property that has sold for a similar amount. It follows that if several similar properties in a road have sold for sums in, say, a £5,000 bracket then another similar house in the road will be worth a figure somewhere in that bracket also. If the identical house next door has just sold for £x after the usual marketing period and full exposure to the market then the subject property, all other things being equal, will be worth £x also. This is the principle of the "comparable". All good Valuers will have considered at least three comparables in arriving at a valuation and have details of them on file.

Under no circumstances should a valuation of a property, be it for mortgage loan, Probate or matrimonial purposes, ever be taken or relied upon as a survey. This is a common fallacy and unfortunately far too common. Too many purchasers rely on the mortgage valuation that we carry out, a copy of which some lenders forward on to them, as a survey. The valuation is not a survey, never has been, never will be and must not be considered or relied upon as such.