How can I determine the market value of a probate property before purchasing?

Market value is the price a probate property would reasonably achieve between a willing buyer and seller on the relevant valuation date, after proper marketing and with both parties acting knowledgeably. Before purchasing, establish that value through a suitably qualified independent valuer, then test the result against reliable evidence and the terms on which the estate is able to sell.

Start by identifying the correct valuation date. A property may need more than one valuation, depending on the purpose:

• The date of death may be relevant to the deceased’s estate accounts and inheritance tax reporting.
• The current date is generally more relevant when deciding what to offer for the property.
• A retrospective valuation may be required if the sale is taking place considerably after the owner’s death or if the market has changed significantly.

Ask the valuer to state clearly which date and definition of value have been used. A figure prepared for tax or estate administration is not automatically the correct figure for a purchase today.

Use an independent valuation rather than relying only on the executor’s asking price. The estate’s representative may obtain informal appraisals to market the property, but an agent’s appraisal is usually an opinion intended to attract offers rather than a formal valuation. A qualified valuer should inspect the property, review the relevant documents and explain the reasoning behind the figure. Where the value will influence borrowing, tax reporting or a dispute between beneficiaries, confirm whether the professional should follow the current RICS valuation standards and provide a written report.

Give the valuer complete instructions. Important details include whether the property will be sold with vacant possession, whether anyone occupies it, whether there is a tenancy, and whether fixtures, outbuildings or parking spaces are included. Also provide any information available about alterations, planning permissions, building defects, insurance claims and previous surveys. An incomplete brief can produce a figure based on assumptions that do not match the proposed transaction.

Check how the valuation was reached. For an ordinary house, the valuer will normally give greatest weight to evidence from genuinely comparable transactions. However, some probate properties require a more specialised approach:

• A flat with a short or unusual lease may need analysis of the remaining term, service-charge position and lease provisions.
• A property requiring substantial refurbishment may need a reasoned assessment of the finished value, works required and risks attached to the project.
• A building with development potential should be valued with caution, because planning permission, access, finance and construction feasibility may not be certain.
• A property with an income-producing use may require rental evidence and an assessment of the relevant investment assumptions.

These methods should not be treated as automatic premiums. Potential is only valuable if a buyer could realistically secure the necessary permissions, complete the work and achieve the assumed use.

Review the evidence independently. Check the property details used in the report, including floor area, number of rooms, parking, garden, outbuildings and any alterations. Compare the report with publicly available transaction records and current listings, while recognising that asking prices are not completed sale prices. If the evidence appears inconsistent, ask the valuer to explain the difference rather than simply selecting the highest estimate.

It is sensible to obtain more than one professional opinion where the property is unusual, the estate beneficiaries disagree, or the proposed price is materially different from the available evidence. The reports should be compared on a like-for-like basis: a formal valuation, an estate agent’s marketing appraisal and a lender’s mortgage valuation serve different purposes and may produce different figures.

Consider the sale conditions separately from the headline figure. A probate property may be offered with limited information, restricted access for inspections, contents left in place or an uncertain completion timetable. Those matters can affect the price a prudent buyer is prepared to pay, but they should be recorded as explicit assumptions or risks rather than hidden in an unexplained discount. Ask whether the valuation assumes the grant of probate or the relevant authority to sell has been obtained. If the personal representatives cannot yet demonstrate authority, the transaction may not be ready to proceed even if the price appears reasonable.

Finally, record the basis of your decision. Keep the valuation report, comparable evidence, survey findings, title information and correspondence with the personal representatives. If you make an offer below the valuation, identify the specific evidence supporting it. If you offer above the valuation, document the reason, such as competition or a feature that the report did not fully reflect. This creates a defensible purchase decision and helps distinguish market value from an emotionally or competitively driven price.