If you are acting as executor and the estate includes a property, you need an open market valuation of that property as at the date of death. For anything other than a very low value estate, a written valuation from a RICS registered valuer is the safest basis, because it is prepared to a professional standard, it is defensible, and it gives you a figure you can stand behind if HMRC asks questions later.
What matters most
The valuation date is the date of death, not the date you instruct the valuer.
You are valuing open market value, which is what the property would fetch in a normal sale between willing parties.
An estate agent appraisal and a RICS valuation are different documents with different standing.
Executors carry personal responsibility for the figures submitted, which is the real reason to get this right.
Why does an executor need a formal valuation at all?
Because the property value feeds directly into the estate accounts and, where the estate is large enough, into the inheritance tax calculation. Undervalue it and HMRC can challenge the figure, reopen the file and seek additional tax with interest, and in cases of carelessness a penalty. Overvalue it and the estate may pay tax it did not owe, which is money out of the beneficiaries’ pockets.
There is a second reason that catches people out. The probate value normally becomes the acquisition cost for capital gains tax purposes if a beneficiary later sells the property. A low probate figure can therefore reduce inheritance tax slightly while creating a much larger capital gains liability down the line. Getting an accurate figure rather than a convenient one protects everybody.
This is one of the situations our property valuation service is specifically set up for, alongside sale, asset division and loan redemption work.
What is open market value and how is it arrived at?
Open market value is the price the property would reasonably be expected to achieve if sold on the open market at the valuation date, assuming a willing seller, a willing buyer, proper marketing and no compulsion on either side. It is not the price a quick cash sale might realise, and it is not an aspirational asking price.
A RICS registered valuer reaches the figure through comparable evidence. That means identifying recent completed sales of genuinely similar properties in the same locality, then adjusting for the differences: size, condition, layout, plot, parking, tenure, and any feature that a buyer would pay more or less for. Completed sales carry more weight than asking prices, because an asking price only tells you what somebody hoped for.
Condition is where estates often differ from ordinary sales. Properties in an estate have frequently been occupied by an elderly owner for many years and may need modernisation, or may have deferred repairs. The valuation has to reflect the property as it actually stands at the date of death, not as it would be after work. That judgement is exactly what professional experience is for, and it is closely related to the defect assessment work we do on surveys for buyers.
How does the process run?
1 Establish the valuation date
The date of death fixes the market conditions to be applied. If you instruct months later, the valuer works retrospectively to that date using evidence available around it.
2 Inspect the property
An internal and external inspection records accommodation, construction, condition, alterations and anything affecting value such as structural movement, damp or non standard construction.
3 Gather and weigh comparables
Completed sales around the valuation date are analysed and adjusted. Where the property is unusual and direct comparables are thin, the reasoning behind the adjustments matters more than ever.
4 Issue the written report
You receive a formal report stating the valuation date, the basis of value, the evidence relied on and the valuer’s professional details. That document is what supports the figure in your return.
Is an estate agent appraisal enough?
Sometimes, for a modest and straightforward estate well below the tax thresholds, a couple of written agent appraisals may be accepted. But understand what you are relying on. An agent appraisal is a marketing opinion, usually free, usually given with an eye to winning the instruction, and not prepared to a professional valuation standard. It typically carries no formal statement of the basis of value and no professional indemnity behind the figure.
A RICS valuation is a regulated professional product. It states the basis of value explicitly, sets out the comparable evidence, and comes from a valuer who is registered, insured and accountable to a professional body. Where inheritance tax is in play, where there are multiple beneficiaries who may not agree, where the property is unusual, or where a dispute is even faintly possible, that difference is the whole point. You can read more about what registration involves on our RICS registered page.
What if beneficiaries disagree with the figure?
This is common and it is one of the strongest arguments for an independent professional valuation from the outset. When the figure comes from a registered valuer with no interest in the outcome, supported by stated evidence, it is far harder for any party to characterise it as convenient to somebody. If one beneficiary wants to buy out the others, the same independent figure gives a defensible basis for that transaction too. Where relationships are already strained, having a neutral document in the room helps more than most people expect.
Documents worth gathering before the inspection
Title deeds or the Land Registry title, confirming tenure, boundaries and any rights or restrictions.
Lease documents and service charge information if the property is leasehold.
Any building regulations approvals or completion certificates for past alterations.
Guarantees for damp proofing, timber treatment, roofing or structural repairs.
Details of any tenancy in place, since an occupied property is valued differently to a vacant one.
The formal requirements for reporting an estate to HMRC are set out in the official guidance on valuing the estate of someone who has died, and the professional standards valuers work to are published by the Royal Institution of Chartered Surveyors.
Frequently asked questions
Can I get a probate valuation months after the death?
Yes. Retrospective valuation is routine work. The valuer applies market conditions and comparable evidence from around the date of death rather than from today, so the figure reflects that earlier point in time. The property is inspected in its current state, and the valuer accounts for any change since. Delay is not a problem, though it helps to mention any work carried out in the meantime.
What if the property sells for more than the probate value?
A modest difference is normal, because markets move and a sale reflects a specific buyer on a specific day. A very large gap invites questions about whether the original figure was properly evidenced. If the sale happens soon after death and at a materially higher price, HMRC may ask why. A properly reasoned valuation with stated comparables is what allows you to answer.
Does a property in poor condition get valued as if repaired?
No. The valuation reflects the property as it stood at the date of death, including deferred maintenance, dated fittings and any defects present. Buyers price condition in, and so does the valuer. This is often to the estate’s benefit, because a realistic condition adjusted figure is both lower and more defensible than an optimistic one based on the property’s potential.
How is a share of a property valued?
If the deceased held a part share, that share is valued rather than the whole. A part share is usually worth less proportionately than an outright interest, because a buyer of a fraction has limited control and limited marketability. The extent of any discount depends on the type of co ownership and the circumstances, and it is an area where professional judgement clearly matters.
Is a valuation needed if the estate pays no inheritance tax?
Often still worth having. Even where no tax is due you must report accurate figures, and the probate value sets the capital gains base cost for any beneficiary who later sells. A soundly evidenced figure protects the executor from criticism and protects beneficiaries from a larger gain than necessary. For a very simple low value estate, agent appraisals may suffice.
Who should instruct the valuer?
The executor or administrator, or the solicitor acting for the estate. Instructing directly keeps the reporting line clear and confirms the valuer is acting for the estate rather than for any individual beneficiary. If beneficiaries are in disagreement, that independence becomes important, so it is worth being explicit about who the instructing party is from the start.
Getting the figure right first time
Acting as executor is demanding enough without carrying doubt about the largest number in the estate accounts. A properly evidenced valuation removes that doubt and gives you something solid to rely on.
If you are administering an estate that includes property in Liverpool or the wider North West, contact Trust Surveyors and we will explain exactly what the valuation will cover.