Why is it important to obtain a RICS probate valuation rather than solely relying on an estate agent's valuation?

A RICS probate valuation is important because it is prepared for a specific legal and tax purpose by a suitably qualified valuer, using a documented methodology and relevant evidence. An estate agent’s valuation is generally a marketing opinion intended to guide an asking price, so it may not provide sufficient support for the figures submitted by an executor.

The distinction matters because the value reported during probate can affect the administration of the estate, inheritance tax calculations and the eventual capital gains tax position. Executors are responsible for ensuring that information supplied to the relevant authorities is accurate and reasonably supported. Relying only on an informal estimate may leave them exposed if the figure is later queried.

A RICS probate valuation provides a more appropriate assessment for several reasons:

• It is prepared for the correct purpose. The valuer considers the requirements of probate and taxation rather than concentrating primarily on how a property might be marketed. The report should explain the basis of the valuation and the assumptions used.
• It follows a recognised professional framework. A RICS Registered Valuer is expected to work within applicable professional standards, maintain appropriate competence and provide a reasoned opinion. This gives the executor a clearer basis for showing how the figure was reached.
• It can address the relevant property circumstances. Probate properties may be occupied, let, unmodernised, subject to structural defects or affected by restrictions. A professional valuation can take these matters into account instead of relying on broad comparisons with apparently similar properties.
• It creates an audit trail. A full report may record the property inspection, comparable evidence, tenure, condition, planning considerations, assumptions and any limitations. This documentation is useful if the valuation needs to be reviewed by an accountant, solicitor, beneficiary or tax authority.

Estate agents can offer useful local market knowledge, particularly when an executor is considering an asking price or planning a sale. However, an agent may provide a range of suggested marketing prices rather than a formal valuation report. The figure can also be influenced by the agent’s view of likely buyer demand, the intended marketing strategy or the prospect of securing instructions. Those factors do not necessarily make the estimate wrong, but they mean it serves a different function.

There may also be a difference between the price an agent believes could be achieved after marketing and the figure required for probate records. A probate valuation must reflect the appropriate valuation basis and relevant circumstances, supported by evidence available for the valuation date. It should not simply reproduce an optimistic asking price or an estimate designed to attract potential sellers.

Obtaining a professional report can be particularly important where:

• the property is unusual, high-value or difficult to compare with nearby homes;
• the condition has deteriorated or substantial works are required;
• there are multiple dwellings, development potential or planning restrictions;
• the property is jointly owned, occupied by a tenant or subject to an unusual tenure;
• the estate may have inheritance tax obligations;
• beneficiaries disagree about the property’s worth; or
• the property is likely to be sold for a materially different sum from the figure initially estimated.

If the property later sells for more or less than the probate figure, that does not automatically mean the original valuation was negligent or inaccurate. Market conditions, negotiations, repairs and marketing decisions can all affect the eventual sale price. Nevertheless, a significant difference may prompt questions, particularly where there was little supporting evidence for the original estimate. A detailed professional report gives the executor a clearer explanation of why the figure was reasonable when prepared.

Executors should retain the valuation report and related information, including details of the property’s condition, photographs where relevant, correspondence and records of later changes. If circumstances alter before the estate is finalised, professional advice may be needed on whether an updated valuation or a tax adjustment is appropriate.

An estate agent’s opinion can therefore be a useful preliminary reference, but it should not normally be the sole basis for a probate valuation where accuracy, independent evidence or tax scrutiny is likely to matter. The appropriate valuer should be instructed with the date of death, the property’s legal and physical details, ownership information and the intended use of the report. Executors should also discuss the valuation with their probate solicitor or tax adviser where the estate has unusual assets or potential tax complications.