Estate agents have offered ‘market appraisals’ for selling purposes for as long as they have existed as a profession.
The term ‘valuation’ is a different, more formal service that has always been conducted by qualified surveyors for legal and financial purposes, not simply for marketing a property.
More recently, estate agents commonly use the term ‘valuation’ as a shorthand for ‘market appraisal’ in casual conversation, or marketing materials. Sometimes a ‘free valuation’ maybe offered.
There was no specific moment when agents universally switched from ‘appraisal’ to ‘valuation.’ Instead, the two terms describe two distinct services that exist concurrently, to assist we have clarified the two terms below:
- Market Appraisal: An informal, typically free, estimate provided by an estate agent of the likely selling price for a property in the current market. Its purpose is to help set an asking price to attract buyers.
- Formal Valuation: A legally binding, paid-for assessment of a property's precise Market Value by a qualified RICS (Royal Institution of Chartered Surveyors) Registered Valuer. This is required for official purposes, such as probate, divorce settlements, or loan security and is governed by the RICS "Red Book" standards.
The distinction has become more emphasised in recent years, as regulatory bodies and consumer protection laws have pushed for greater clarity in the terminology used by estate agents to avoid consumer confusion.
Many estate agents now explicitly use ‘market appraisal’ to manage seller expectations and clarify that their estimate is not a legally defensible valuation.
Our team of RICS Registered Valuers can provide formal valuations for Tax, (Inheritance & Capital Gains), Probate, Secured Lending, Accounts, Development Consultancy and Expert Witness purposes.
In addition to new build and existing residential dwellings, our team value offices, industrial and retail properties.
For all your formal valuation requirements: valuationservices@savills.com