words Alexa Wang
A valuation is part of the process of buying a home. It is performed by a mortgage lender to check if the property is worth what a person is planning on spending on it.
It is not as in-depth as other house surveys but nonetheless can give a buyer an insight into whether they’re spending the right amount on their potential property. How does this process work, and what are lenders looking for?
Different Survey Types
It’s worth noting that a home valuation is not the only way of inspecting a property. There are several ways of surveying a home. A mortgage valuation is not the same as a house survey and shouldn’t be fully relied on to confirm a property is in good enough condition to buy. For more in-depth inspections there are homebuyer reports and full building surveys. A valuation is mainly there to help the mortgage lenders, whereas other surveys offer a more comprehensive report for the potential buyer.
What’s the Cost?
According to Money Advice Service, a mortgage valuation can cost between £150 to £1,500. Generally speaking, the price of the property can impact the cost of the valuation. The buyer has to pay these fees, although some lenders will offer free mortgage evaluations to attract new customers. Landlords can pay for a valuation to help figure out if they’re charging the right amount of rent for their property and a letting agency can help with legislation.
The Process
What’s to be expected from a valuation? The mortgage lender will use a surveyor of their choice to conduct the valuation. This usually happens within two weeks of the request. The surveyor is looking for any signs of substantial damage that could impact the cost of the property. The lender has to be sure the property is worth the money they’re loaning. The report is brief and is typically two or three pages in length. Not all lenders provide a copy but should flag any serious issues they found.
Ways to Prepare
For those putting their property on the market, there are ways to prepare for a home valuation. The house should look clean and tidy, as the surveyors will be looking for general signs of upkeep. Try and make the home look as spacious as possible. Fix minor defects that might impact the results. These DIY jobs include fixing dripping taps, scrubbing mould, and filling in hairline cracks. If there is a garden, spend time sprucing it up to help add to the home’s exterior appeal.
A valuation survey is mainly in place to help a mortgage lender gauge the property’s value but can give the potential buyer a rough insight into if the future home is worth investing in. What’s your experience of buying property been like?
