RICS Valuation vs Estate Agent Valuation: What’s the Difference in Real Terms?
If you need to know how much a property is worth, you’ll often come across two options: a RICS valuation or an estate agent valuation. While both provide a figure, they are used for very different purposes and choosing the wrong one can cause delays or problems later.
This guide explains the difference between a RICS valuation and an estate agent valuation, when each is appropriate, and why a RICS valuation is often required for legal and financial matters.
Contents
- RICS Valuation vs Estate Agent Valuation
- The Purpose of Each Valuation
- Why Estate Agent Valuations Are Often Rejected
- Accuracy and Risk: Why the Difference Matters
- When Is an Estate Agent Valuation Enough?
- When Do You Need a RICS Valuation Instead?
- Local Knowledge and Property Valuations
- Which Valuation Should You Choose?
- Request Your RICS Valuation Quote
- FAQs: RICS Valuation vs Estate Agent Valuation
- Is a RICS valuation more accurate than an estate agent valuation?
- Why do solicitors and HMRC reject estate agent valuations?
- Can I use an estate agent valuation for probate?
- Are estate agent valuations ever accepted for legal purposes?
- Does a RICS valuation include a property inspection?
- Can two estate agents give different property valuations?
- Which valuation should I get if I’m unsure?
RICS Valuation vs Estate Agent Valuation
A RICS valuation is an independent, regulated property valuation prepared by a Chartered Surveyor and accepted for legal, tax and financial purposes.
An estate agent valuation is a marketing estimate designed to help sell a property and is not suitable for formal or legal use.
The Purpose of Each Valuation
RICS Valuation
A RICS valuation is produced to provide an accurate, defensible property value that can be relied upon by third parties such as solicitors, lenders and HMRC.
It is typically required for:
- Probate and inheritance tax
- Capital gains tax
- Divorce and financial settlements
- Government schemes
- Secured lending and equity release
For a full explanation of when a professional valuation is required, see our guide to RICS property valuations
Estate Agent Valuation
An estate agent valuation is intended to suggest an asking price when marketing a property for sale. It is influenced by current market conditions, buyer demand and competition between agents.
Estate agent valuations:
- Are not independently regulated
- Carry no professional liability for accuracy
- Are not accepted for tax or legal purposes
Why Estate Agent Valuations Are Often Rejected
Many organisations will not accept an estate agent valuation because it is not prepared under recognised professional standards and does not carry accountability.
Solicitors, courts, lenders and HMRC typically require a RICS valuation because it:
- Is evidence-based
- Follows regulated valuation standards
- Is prepared by a qualified professional
- Can be challenged, defended and relied upon
Relying on an estate agent valuation where a RICS valuation is required can result in delays, additional costs or disputes.
Accuracy and Risk: Why the Difference Matters
Property value can be affected by factors such as condition, alterations and local market demand. Even small valuation differences can have significant financial implications for tax or legal matters.
When Is an Estate Agent Valuation Enough?
An estate agent valuation may be suitable if:
- You are selling a property
- You want a general idea of market value
- No legal or financial reporting is required
However, it should not be relied upon for formal purposes.
When Do You Need a RICS Valuation Instead?
You will usually need a RICS valuation when:
- Dealing with probate or inheritance tax
- Calculating capital gains tax
- Handling divorce or financial settlements
- Using property for secured finance
- Valuing property for official or regulatory purposes
Local Knowledge and Property Valuations
Property values vary significantly by location. Local knowledge is essential to ensure valuations reflect real market conditions rather than national averages.
Our RICS surveyors provide property valuations across:
- Newcastle upon Tyne
- Durham
- Darlington
- Sunderland
- The wider North East
Working with a local surveyor helps ensure accuracy, particularly for probate, tax and financial matters. You can read more about this in our guide on the benefits of working with local RICS surveyors
Which Valuation Should You Choose?
- For marketing a property, an estate agent’s valuation may be sufficient.
- For legal, tax or financial purposes, a RICS valuation is essential.
Understanding the difference early can help you avoid delays and ensure you obtain the correct documentation the first time.
Request Your RICS Valuation Quote
If you require an accurate, independent valuation you can rely on, our team provides RICS-compliant property valuations across the North East.
Request a quote to speak with a qualified RICS surveyor.
FAQs: RICS Valuation vs Estate Agent Valuation
Is a RICS valuation more accurate than an estate agent valuation?
A RICS valuation is generally more accurate for formal purposes because it is independently prepared, evidence-based and regulated. Estate agent valuations are influenced by marketing strategy and buyer demand, making them unsuitable where precision and accountability are required.
Why do solicitors and HMRC reject estate agent valuations?
Solicitors and HMRC usually reject estate agent valuations because they are not regulated, carry no professional liability and are not prepared to the recognised valuation standards. A RICS valuation provides documented evidence that can be reviewed, challenged and relied upon.
Can I use an estate agent valuation for probate?
In most cases, no. Probate and inheritance tax matters typically require a RICS valuation because it must meet HMRC standards. Using an estate agent valuation can lead to delays, revaluations or disputes with HMRC.
Are estate agent valuations ever accepted for legal purposes?
Estate agent valuations are rarely accepted for legal or financial purposes. They may be suitable for setting an asking price when selling a property, but they are not appropriate for tax calculations, court proceedings or government schemes.
Does a RICS valuation include a property inspection?
Yes. A RICS valuation usually includes a physical inspection of the property by a qualified surveyor, allowing condition, location and market factors to be properly assessed. Estate agent valuations may be carried out without a detailed inspection.
Can two estate agents give different property valuations?
Yes. Estate agent valuations often vary because they are influenced by pricing strategy, market conditions and competition. A RICS valuation is designed to provide a single, defensible figure based on evidence rather than opinion.
Which valuation should I get if I’m unsure?
If there is any chance the valuation will be used for legal, tax or financial purposes, it is safer to instruct a RICS surveyor from the outset. This avoids the risk of having to obtain a second valuation later.