Guides · Estate agents
Preparing a market appraisal from sold prices
A market appraisal is your professional opinion of the price a home is likely to achieve on the open market. Vendors often compare appraisals from two or three agents before choosing one, so a clear written appraisal matters.
This guide covers how to build an appraisal from sold prices, how to set out your figures, what to put in writing and what to keep on file.
Market appraisal and formal valuation
A market appraisal is a sales opinion used to set the asking price and plan the marketing. A formal valuation for lending, tax or legal purposes is carried out by a RICS registered valuer under RICS valuation standards, known as the Red Book.
Make the purpose clear in the appraisal itself. A vendor should not mistake it for a mortgage valuation or a figure they can use for probate or a divorce.
Gather the evidence
Start with sold prices from HM Land Registry: every sale on the street in the last 12 months, and same-type sales in the postcode sector in the last six months. Our guide to choosing comparable sales covers which sales to use.
Add the trend for that property type in the postcode district, recent sales from your own office that are not yet registered, and homes now for sale or under offer nearby. Then add what you saw at the visit: size, layout, condition, outside space and parking.
Checklist
- State that the appraisal is not a formal valuation
- Use street sales from the last 12 months and sector sales from the last six
- Add the district trend and your own unregistered sales
- Give an asking price and an expected selling price
- List each comparable with its address, date and price
- Keep your evidence and adjustments on file
- Confirm your advice in writing if the vendor chooses a higher price
Set out the figures
Give the vendor two figures: a recommended asking price and the price you expect the home to sell for. They are often different, and explaining both avoids disappointment later.
Show a range rather than a single number, and explain where the home sits within it. For example, if similar semi-detached houses in the sector sold for between £310,000 and £335,000 in the past six months, and this home has a newer kitchen but a smaller garden, you might expect a sale towards the middle of that range. These figures are only an example.
What to include in the written appraisal
Keep it short and easy to check. A useful appraisal sets out the recommended asking price and expected selling price, the comparables with their addresses, dates and prices, and why each one is relevant.
Put the closest matches first. A vendor reading the appraisal at home should be able to see, without your help, why you chose each sale and how it compares with their home. Note any comparable your office sold, as you can speak to its condition and how it sold.
Add a short note on the local trend and any features that move the home up or down the range. Use plain language. If you quote a typical price for the area, say whether it is a median and which months it covers.
Keep a record of your reasoning
The Property Ombudsman Code of Practice requires any figure you advise to be given in good faith, to reflect what is known about the property and current market conditions, and to be supported by comparable evidence. Overvaluing to win an instruction does not meet that standard.
Keep the comparables you used, the adjustments you made and the date of the appraisal on file. If the vendor chooses a higher asking price against your advice, confirm your advice to them in writing. A clear record shows how you reached your figure if it is questioned later.
Review the price once the home is on the market. The Code also requires agents to keep their marketing strategy under review with the vendor. New sales registered after your appraisal, the number of viewings and the feedback from buyers all show whether the price is right. Our guide to monthly market updates for vendors covers how to report this.
Accuracy and material information
Agents must not mislead consumers, and that includes the price evidence they present. The duty sits under the Digital Markets, Competition and Consumers Act 2024 and is enforced by the Competition and Markets Authority. Trading standards withdrew its material information guidance on 8 May 2025, but the legal duty still applies.
Quote sold prices accurately, with their dates. Do not present an asking price as a sold price, and do not leave out recent sales that would lower the range.
Using House Price Monitor
The professional plan costs £15 a month for up to five postcode districts. It includes a monthly report for each postcode and valuation packs, both as PDFs with your logo, firm name, phone and website.
A valuation pack lists every sale on the street in the last 12 months, same-type sales in the postcode sector in the last six months and the postcode's quarterly trend for that type, with a short written summary. It reports completed sales. The price you recommend is your own judgement. Your first report is free when you sign up.
Other guides
Using sold prices in a valuation appointment
Monthly market updates for vendors and landlords