How Much Does a RICS Valuation Cost?
A RICS Valuation Report costs around £320, based on the average UK house price of £277,000. Keep in mind that this can be as low as £160 and as high as £600, with the cost depending on the size and type of home. The location will also be a factor, with affluent areas often costing more.
You should also consider the time it takes for the surveyor to get to the property. Additionally, the valuer or surveying firm you opt for will factor into the overall cost.
If you are selling, need a valuation for legal reasons or for a Help to Buy home, you should arrange a RICS Valuation.
Below we look at RICS Valuation costs, when you may need one and the various valuations available. This will prepare you for when you need to find an accredited valuer for your home.
What is a RICS Valuation?
A RICS Valuation is used to determine a property's market value. It involves an inspection of the home alongside market research. This is completed by a Royal Institution of Chartered Surveyors registered surveyor or valuer.
Valuations must comply with the RICS Valuation Global Standards 2017. These are referred to as a “Red Book Valuation” or RICS Valuation Report.
This is not a detailed look at the home and should not replace a property survey.
The inspection will review and consider the following:
- Size and age of the home
- How it was built and the materials it is made from
- Number of bedrooms
- Location and local government zoning
- Recently sold properties in the area
- Condition of the home
- If the property is leasehold or freehold
- Any planning permissions
- Additional property features such as extensions
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Costs Based on Property Value
Below we look at the cost of a valuation based on the property’s value:
| Property Value | Average Cost (£) |
|---|---|
| Up to £100,000 | £220 |
| £100,001 to £200,000 | £280 |
| £200,001 to £300,000 | £320 |
| £300,001 to 400,000 | £370 |
| £400,001 to £500,000 | £420 |
| £500,001 to £600,000 | £490 |
| £600,001 to £700,000 | £520 |
| £700,001 to £800,000 | £570 |
| £800,001 to £900,000 | £610 |
| £900,001 to £1,000,000 | £640 |
Be aware that these figures are averages and the cost of your property valuation surveyor will vary.
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When Do You Need a RICS Valuation?
RICS Property Valuations can benefit people for many different reasons. Below we look at some of the more common situations that need a property valuation report:
Valuing a Help to Buy or Shared Ownership Property
When either selling or paying off a Help to Buy or Shared Ownership property, you will need a RICS valuation. This is because the shares are sold to the homeowner at the current market value
When selling the home, they need to pay back the equity loan provided by the government. Again, this is a percentage at the fair and accurate market rate.
Valuing a Probate Property
When someone has passed away, probate must be granted. This is so that their estate can be split among beneficiaries listed in their will. Before proceeding with this process, the value of the home needs to be established.
Inheritance Tax Purposes
An inheritance tax valuation is used to determine the tax payable on an estate before it is passed on to beneficiaries. This must be undertaken by a RICS-qualified surveyor.
Selling a Home
A valuation will help a seller price their home before putting it up for sale. An estate agent can provide a valuation as part of their services, but it will not be the same as a RICS Valuation. Sellers can then set a fair price for the property in line with housing market trends.
Buyers Wanting a Second Opinion
Some buyers want to be sure the home is worth what they are paying for it. Although mortgage lenders will arrange a valuation as part of the mortgage process, this is for their benefit. If a buyer wants their own valuation, they can instruct a surveyor or can add it to a RICS Level 2 survey. This will allow them to make an informed decision on the home.
What Are Other Types of Property Valuation?
A RICS Valuation is considered the most accurate and impartial valuation available. This is why it is required for Help to Buy and legal purposes.
There are other types of valuations available when buying or selling a home, serving a specific purpose. These include:
Mortgage Valuation
Lenders will usually charge between £150 - £300 for a mortgage valuation. This will be a requirement when applying for a mortgage with them. Some lenders, however, may waive the fee. This is at the discretion of the lender and will vary between banks and lenders.
Your lender will arrange a professional valuation as part of the mortgage process. This is to ensure the home is worth the amount they are loaning you and that their investment is secure.
Estate Agent Valuation
An estate agent valuation is free for sellers. When selling your home, this will usually suffice and you can use this to price your home.
This cannot replace a RICS valuation for legal purposes or Help to Buy. It will also not provide the same level of expertise or clout.
Auction House Valuation
If you are selling your property at auction, you could get a valuation through an auction house. Most auction houses will offer a free valuation if you are selling your home with them. Otherwise, they may charge a fee for this service. The cost will be at the individual auction house's discretion.
Online Valuation
Property portals such as Zoopla offer instant online house valuations. These are free and can give you an approximate of what your home may be worth. You are also able to book an in-person valuation for a more accurate result.
