What limitations might arise from using only an estate agent's valuation for probate purposes?

Using only an estate agent’s valuation for probate can be insufficient because it is generally a marketing opinion rather than a specialist assessment of the property’s value at the date of death. Its limitations relate to purpose, timing, evidence, assumptions and the level of detail provided.

It may not be a retrospective valuation. Probate normally requires the property’s market value as at the date of death, even if the valuation is obtained later. An estate agent may instead assess what the property could achieve in the current market, based on present demand and recent instructions. Changes in prices, interest rates, condition or local development can make a current opinion unsuitable for establishing the earlier value.

The valuation may be prepared for marketing rather than estate administration. An agent’s figure is often designed to guide an asking price and attract potential buyers. That is different from an assessment prepared to support an executor’s records, tax reporting and dealings with professional advisers. The agent may provide a suggested range or asking price without setting out the valuation assumptions in sufficient detail for probate purposes.

Evidence may be limited. A short report might refer generally to comparable properties without identifying the transactions, dates, sizes, conditions and adjustments used. It may also omit details about the inspection, title information, tenure, access, development potential or restrictions affecting value. Without this information, it can be difficult for the executors to explain how the figure was reached.

Property-specific issues may be overlooked. An estate agent’s inspection is not normally a building survey or legal investigation. Matters such as structural defects, subsidence indicators, non-standard construction, contamination, Japanese knotweed, planning constraints, lease terms, rights of way and occupancy arrangements can affect value. If these issues are not identified or properly reflected, the valuation may not represent the property’s complete circumstances.

Different valuation assumptions can produce different figures. The result may depend on whether the property is assumed to be vacant, sold with vacant possession, subject to a tenancy or affected by a restricted marketing period. Probate work may also require consideration of the property’s realistic open-market circumstances rather than an optimistic asking price. These assumptions should be recorded clearly instead of being left implicit.

A single opinion gives the estate little cross-checking. Estate agents can have useful local knowledge, but valuations are professional opinions and may vary between agents. Differences can arise from the selected comparables, the anticipated buyer audience, the agent’s view of saleability and the condition assigned to the property. Obtaining independent advice or corroborating the figure with comparable evidence can help identify an unusual or weakly supported assessment.

The figure can affect more than the initial return. The valuation may be relevant when calculating the estate’s assets, considering whether tax is due and recording the property’s acquisition value for a later disposal. A value that is not properly supported can create additional work if accountants, solicitors or tax authorities ask how it was determined. Any later sale price that differs materially should also be considered alongside the original evidence and the reasons for the difference.

Before relying on an estate agent’s assessment, executors should check:

• whether it is expressly stated to be a date-of-death valuation;
• the valuation date and the date on which the inspection took place;
• whether the property was inspected internally and externally;
• the comparable sales and adjustments relied upon;
• the assumptions concerning tenure, occupation, condition and possession;
• any restrictions, defects or development factors considered; and
• whether the report is sufficiently detailed for the estate’s accountant, solicitor or tax records.

An estate agent’s opinion can therefore be useful as informal market evidence or a sense-check, particularly when considering a future sale. It should not automatically be treated as a complete probate valuation. Where the estate is complex, the property has unusual features, the tax position is material or the figure may be scrutinised, a suitably qualified independent valuation with a clear written rationale is more appropriate.