Market appraisal
A market appraisal is an estate agent's view of what a home could sell for. It is usually free and is not the same as a formal valuation.
A market appraisal is an estate agent's opinion of the price a home is likely to sell for on the open market. Agents carry one out before they are asked to sell a home, and they usually do it free of charge.
It is used to set the asking price. It is not a formal valuation by a surveyor.
How an agent carries it out
The agent visits the home and looks at its size, condition, layout, outside space and parking. They then compare it with recent sales of similar homes nearby, known as comparables, and with homes currently for sale.
The figure an agent gives should be given in good faith and backed by comparable evidence. Many sellers ask two or three agents for an appraisal before choosing one.
Market appraisal and valuation
A market appraisal is a sales opinion. A formal valuation is carried out by a RICS registered valuer and can be relied on for legal or lending purposes.
A mortgage valuation is done for the buyer's lender to check the home is worth the loan. A home survey looks at the condition of the home for the buyer. Neither is the same as an agent's market appraisal.
Why appraisals can differ
Different agents can give different figures for the same home. One may suggest a higher figure to win the instruction, while another may suggest a lower one to attract more buyers. A figure that is well above recent sales nearby may lead to a long time on the market and price reductions.
As an example, if three agents suggest £320,000, £335,000 and £350,000, and similar homes on the street have sold for between £315,000 and £330,000 in the last year, the sold prices are a useful check on the higher figures. These numbers are only for illustration.
Checking an appraisal against sold prices
Sold prices from HM Land Registry let you see the evidence for yourself. Our guide on estimating a home's value from sold prices explains how to choose similar sales and allow for time and condition. Typical sold prices for every postcode district are on the free postcode pages.
| Carried out by | An estate agent |
| Cost | Usually free |
| Based on | Recent comparable sales and current listings |
| Formal valuation | No. That is done by a RICS registered valuer |
Related terms
Asking price · Comparables · Mortgage valuation · Home survey · Guide price · Median price