How to Value Your Home

Whether you're thinking of selling, remortgaging, or just curious about your property's worth, understanding how to value your home is essential. Getting it right means pricing competitively if you're selling, or making sure you're not overpaying if you're buying. Get it wrong, and you could miss out on thousands of pounds.

The good news is there are several reliable methods to estimate your property's value, ranging from quick online tools to professional surveys. This guide walks through each approach, helping you understand when to use which method and how to get the most accurate valuation possible.

Understanding Property Valuation

Before diving into methods, it's worth understanding what "value" actually means in property terms. A property is worth what someone is prepared to pay for it—that's the simplest definition. But trying to predict that figure requires looking at evidence: what similar properties have sold for, what buyers are currently offering, and what the property can realistically achieve on the open market.

Valuations are always estimates. Even professional surveyors can't tell you exactly what your property will sell for—they can only provide an opinion of value based on evidence and experience. The actual sale price is determined on the day, through negotiation between buyer and seller.

Method 1: Comparative Market Analysis (Comparables)

The most fundamental approach to valuation is looking at what similar properties have sold for. This is called comparative market analysis, or using "comparables." It's the method estate agents use, and it's what underpins most automated valuation models.

Finding Comparables

Look for properties that have recently sold—ideally within the last six months—similar to yours in terms of:

• Property type — detached house, flat, terraced, etc.
• Number of bedrooms — a three-bed isn't comparable to a one-bed
• Location — nearby, on the same type of street
• Condition — similar standard of renovation
• Floor area — within 10-15% of your property

The more recent and similar the comparables, the more reliable your estimate. Look at at least five or six sales to get a realistic picture, rather than relying on just one or two properties.

Adjusting for Differences

No two properties are identical. Once you've found comparables, you need to adjust for differences:

• If a comparable has an extra bedroom, it might be worth 10-15% more
• A recently renovated kitchen or bathroom adds value
• A south-facing garden might command a premium
• Being near a railway line or busy road reduces value
• Top-floor flats often cost more than ground floor

These adjustments require experience and judgement—which is why estate agents exist. But you can get a reasonable estimate by being systematic about your comparisons.

Method 2: Estate Agent Valuations

If you're serious about selling, getting an estate agent to value your property is the next step. Estate agent valuations are free—no obligation—and they provide a professional opinion based on local market knowledge and comparables.

What to Expect

An estate agent will visit your property, assess its condition and features, and then provide a valuation. They should explain their reasoning, citing comparable sales that support their figure. Most agents will also suggest a marketing price range—typically within 5-10% of their valuation.

Be cautious of agents who value your property significantly higher than others. This is a common tactic to win your business— they'll "pop round" and tell you your £300,000 property is worth £350,000 to secure the instruction. When it doesn't sell, they'll suggest reducing the price.

Getting Multiple Opinions

Always get at least three valuations from different agents. If one comes in significantly lower or higher than the others, ask them to explain their reasoning. Sometimes a lower valuation is more realistic; sometimes an agent knows the market better in a particular street or development.

Don't automatically go with the highest valuation. The agent who values at £350,000 when others say £300,000 isn't giving you extra value—they're setting you up for disappointment.

Method 3: Online Valuation Tools

Automated Valuation Models (AVMs) use algorithms to estimate property values based on Land Registry data, property characteristics, and market trends. They're quick, free, and give you a ballpark figure in seconds.

How They Work

AVMs analyse millions of property transactions, identifying patterns and relationships between property features and sale prices. They then apply these patterns to estimate your property's value based on its characteristics—type, location, size, and so on.

The best AVMs are accurate to within 5-10% of the final sale price for typical properties. They're less reliable for unusual properties, new developments, or properties in areas with limited transaction history.

Limitations

Online tools can't visit your property, so they can't assess condition, layout, or features that might affect value. They also can't account for recent improvements or problems that aren't reflected in the data. Use them as a starting point, not a definitive answer.

Our house price search tool shows you actual sold prices in your area, giving you the raw data to make your own comparisons. This is often more useful than a single estimated figure.

Method 4: Professional Surveys

If you need a formal valuation—for mortgage purposes, inheritance tax, or legal proceedings—you'll need a professional survey. The two main types are valuation surveys and building surveys.

Mortgage Valuation

When you apply for a mortgage, the lender will arrange a valuation (sometimes called a "valuation survey"). This is for their benefit, not yours—they want to ensure the property is adequate security for the loan.

The mortgage valuation is usually a basic inspection, and the valuer works for the lender, not you. It won't identify structural problems or give you detailed information about the property's condition. The cost is typically wrapped into your mortgage arrangement fees.

RICS Home Survey

The Royal Institution of Chartered Surveyors (RICS) offers three levels of survey:

• Level 1 (Home Survey) — A basic visual inspection, suitable for conventional properties in reasonable condition. Reports around £250-£400.
• Level 2 (Home Survey with Valuation) — More detailed inspection plus a valuation. Suitable for most properties. Reports around £400-£700.
• Level 3 (Building Survey) — Comprehensive inspection of all accessible areas. Recommended for older properties, unusual buildings, or if you're planning major works. Reports start around £600 and can exceed £1,500 for large properties.

A RICS survey gives you a professional, independent opinion of value—though you should clarify whether the valuation figure is included. Some surveyors offer it as an optional extra.

When to Get a Professional Valuation

You don't need a professional valuation for every situation. Here's when it's worth the expense:

Selling Your Home

An estate agent valuation is usually sufficient when selling. You can do your own research using our sold price data to check whether their estimate seems realistic. Only get a formal RICS valuation if you disagree with agent estimates and need an objective third-party opinion.

Remortgaging

Your lender will arrange a valuation, but you might want an independent RICS valuation if you believe their valuation is too low. A higher valuation means better loan-to-value ratios and potentially better mortgage deals.

Probate and Inheritance

When someone dies, the estate typically needs a formal property valuation for inheritance tax purposes. A RICS valuation is usually required, and the valuer must be specified on the probate paperwork.

Dispute Resolution

If you're in a property dispute—perhaps with a neighbour over a boundary, or in a divorce settlement—a formal RICS valuation provides an independent, legally recognised assessment that can help resolve the matter.

Factors That Affect Your Home's Value

Understanding what adds or detracts from property value helps you assess your own home more accurately. Some factors you can influence; others you simply have to accept.

Factors You Can Influence

• Presentation — Clean, decluttered, well-presented properties sell for more
• Modernisation — Updated kitchens and bathrooms add value
• Energy efficiency — Better EPC ratings increasingly matter to buyers
• Outdoor space — Gardens and balconies are highly valued
• Parking — Off-street parking adds significant value in urban areas

Factors You Can't Change

• Location — The biggest single factor; you can rarely change your street
• Transport links — Proximity to stations affects value significantly
• School catchment — Good local schools add considerable value
• Neighbourhood — Crime rates, neighbour quality, and local amenities

Common Valuation Mistakes

Avoid these common errors when valuing your property:

Using Asking Prices as Evidence

Asking prices are what sellers hope to get—they're not what properties actually sell for. In a falling market, asking prices are often significantly above sale prices. Always look at sold prices for reliable evidence.

Overvaluing Improvements

Renovating doesn't guarantee you'll recoup the cost. Kitchens and bathrooms typically add some value, but rarely 100% of what you spent. Modern extensions sometimes add more value than they cost; sometimes less.

Ignoring Local Trends

Your street might be in a different market to the next one over. Don't assume what happened in the next town applies to your area. Use local comparables wherever possible.

Emotional Attachment

It's your home, and you love it. But buyers don't share your memories or your attachment to the garden where your children played. Try to view your property objectively, as a buyer would.

Summary: Choosing the Right Method

Method	Cost	Best For
Online AVM	Free	Quick estimate, initial research
Your own comparables	Free	Understanding the market, checking agent estimates
Estate agent valuation	Free	Selling your property
RICS survey	£250-£1,500+	Mortgage, probate, dispute, comprehensive assessment

Start with free methods—online tools and your own comparables—to get a ballpark figure. Then use an estate agent valuation when you're ready to sell. Only pay for a professional survey when you specifically need one for legal, mortgage, or inheritance purposes.