Podcast: What happens at a home valuation?

On this episode of the ESPC Property Show, Paul & Megan are joined by property experts Louisa Raistrick from Coulters and Sean Nicol from Simpson & Marwick, who collectively bring 40 years of experience to demystify the home valuation process in the Scottish property market.

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Key Insights

Property valuations explained

A property valuation is a professional estimate of what a home could sell for under current market conditions and is also used to support lending decisions. It is typically offered as a free, no-obligation service, making it an easy first step for anyone considering selling. While online valuation tools may seem helpful, they are often inaccurate as they cannot account for key details like condition, layout, or unique features, so they should only be used as a rough guide.

The home valuation process

The home valuation process begins with agents researching the local area and comparable sales before visiting the property. During the visit, which usually lasts around one to one and a half hours, homeowners are encouraged to highlight features and improvements while agents take notes and sketch layouts. Agents also provide advice on preparing the property for sale, including presentation, addressing potential issues early, and organising important documents, before completing further detailed research back at the office.

Valuation vs Home Report

An agent’s valuation reflects an informed estimate of the likely sale price, while the Home Report, prepared by a qualified surveyor, provides the official valuation that largely determines the asking price in Scotland. Professional agents aim to ensure their valuation closely aligns with the expected Home Report figure, recognising that the surveyor’s assessment ultimately sets the benchmark for the market.

What affects property value

Several factors influence a property’s value, with size being the most important. Condition also plays a major role, as buyers currently prefer homes that require little work, while location - such as desirable school catchment areas - remains key. Market conditions, including supply, demand, competition, and economic factors like interest rates, also impact pricing, which is why agents typically provide a price range rather than a fixed figure.

Common misconceptions

Many people believe they must pay for a valuation or are obligated to sell with the agent, but professional valuations are free and carry no commitment. Another common misconception is that expensive renovations will significantly increase value, when in reality upgrades often only recover their cost. Agents usually recommend focusing on essential repairs rather than investing heavily in discretionary improvements.

When to get a home valuation

It is advisable to get a valuation as early as possible, even if selling is only a future consideration. This allows time to plan, carry out repairs, and understand the market. Being prepared in advance can also provide a “fast mover advantage,” with marketing materials ready and a stronger position when competition increases, while also making sellers appear more committed when making offers on other properties.

Post-valuation information

After the appointment, agents provide a marketing proposal that outlines their opinion on the property’s value along with a clear breakdown of selling costs. This typically includes agent fees, Home Report costs, and marketing expenses, helping sellers make an informed decision about how to proceed.

Advice for sellers

Sellers are encouraged to speak to a solicitor estate agent early and consider obtaining valuations from two or three firms to compare approaches and pricing. This also helps in choosing an agent they feel comfortable working with. Relying on an in-person professional valuation is far more accurate and beneficial than using online estimates alone.