How can I ensure that the valuation of a probate property is accurate and reflective of current market conditions?

An accurate probate property valuation should distinguish between the property’s market value at the date of death and its value at the date of the proposed sale. These are separate assessments: the first may be needed for inheritance tax and estate administration, while the second helps the executors decide whether a current offer is reasonable. A valuation that reflects present market conditions should therefore be reviewed if there has been a significant delay between the two dates.

Start by giving the valuer complete information about the property and the estate’s circumstances. This should include:

• the full address and property type;
• the approximate size, layout and number of bedrooms;
• the tenure, lease length and service charge arrangements, where relevant;
• whether the property is vacant, occupied or let;
• known defects, alterations, planning issues or restrictions;
• the condition of the building, including any structural or environmental concerns; and
• any unusual features that could affect demand or saleability.

The valuer should inspect the property rather than relying solely on online information or an automated estimate. An inspection can identify matters that do not appear in publicly available records, such as significant disrepair, non-standard construction, poor access, Japanese knotweed, subsidence indicators or alterations that may not have the necessary approvals. If access is not possible, the report should clearly state that it is based on limited information and explain how that limitation affects the opinion of value.

Ask for the valuation basis and assumptions to be stated clearly. For most estate purposes, the relevant concept is usually open-market value: the price the property might reasonably achieve between a willing buyer and willing seller, acting knowledgeably and without compulsion. However, the figure can be affected by matters such as vacant possession, an existing tenancy, a short lease, restrictions on title or a buyer’s need to carry out extensive works. A report should not present a single figure without explaining these conditions.

Check that the report uses evidence that is genuinely comparable. The most useful transactions are normally nearby properties with similar size, type, tenure, condition and location. Asking prices are not proof of value because they show what sellers hope to achieve, not what buyers have paid. Completed sale evidence is more useful, although the valuer may need to make adjustments where a comparable property differs in condition, floor area, parking, garden provision or position.

Timing is particularly important. For a date-of-death valuation, the evidence should relate as closely as possible to that historical date. A later sale price cannot automatically be substituted because the market may have changed and the property may have been improved, deteriorated or marketed under different conditions. The valuer may need to use historical transactions and apply professional analysis to reach a retrospective opinion.

For a current sale decision, request an updated assessment rather than relying on an old probate figure. The update should consider changes in local demand, mortgage affordability, the supply of similar properties, completed transactions since the original report and any change in the property’s condition. It should also take account of whether the property is likely to appeal to owner-occupiers, landlords, developers or cash purchasers, since different buyer groups may assess risk and refurbishment costs differently.

Executors should compare the valuation with independent evidence without treating an online calculator as a replacement for professional judgement. Useful checks include:

• reviewing recent completed sales for genuinely similar properties;
• checking whether the property has been listed previously and at what price;
• comparing the valuer’s adjustments with the actual differences between the properties;
• asking whether any local market movement between the relevant dates has been addressed; and
• obtaining a second opinion if the figure appears inconsistent with the evidence.

If two professional opinions differ, investigate the reason rather than simply choosing the higher figure. Differences may arise from contrasting assumptions about condition, development potential, tenure, legal restrictions, required works or the appropriate valuation date. Ask each valuer to explain the evidence and assumptions supporting the figure. A written explanation is important where the valuation may later be reviewed by beneficiaries, HMRC, a solicitor or another estate professional.

The valuation should also be considered alongside the legal documents. Errors in the title, uncertainty over ownership, an unregistered transfer, restrictive covenants or an unresolved tenancy can affect both value and the pool of potential buyers. These issues are not always matters for the valuer to resolve, so the report should identify them and the executors should ask the solicitor whether they require further investigation.

Keep a complete valuation file. It should contain the signed report, inspection details, photographs where provided, comparable evidence, instructions given to the valuer, correspondence about assumptions and any later update. If the property is marketed for a figure materially above or below the valuation, record the commercial reason, such as a change in condition, a revised strategy or new evidence from the market.

Finally, do not confuse a probate or inheritance-tax valuation with the price that will necessarily be achieved. The eventual result depends on marketing, buyer enquiries, survey findings, legal due diligence and negotiations. A well-supported valuation gives the executors a defensible starting point, but it should be revisited when circumstances change and before accepting an offer that appears inconsistent with current evidence.