One of the biggest eye-openers? Just how common it is for probate properties to be wildly overvalued. Not by accident, but by design.
Why the agent’s “valuation” isn’t really a valuation
Let’s clear something up: most estate agents don’t provide formal valuations, they give market appraisals, designed to win business. That’s not cynicism; that’s the business model.
When an agent provides a probate valuation, there’s no charge, but there is a catch: they want the instruction. And the easiest way to win that instruction is to dangle the highest number in front of the family or executor. It sounds good on paper… until the price starts falling.
It’s called “vendor management” and it usually goes like this:
– List it high;
– Blame the market;
– Chip away at the price over several months;
– Eventually sell near where it should have been priced all along;
– And all that lost time can cost the estate more than just patience.
The HMRC problem
Here’s where it gets serious: HMRC requires probate valuations to reflect “open market value” as of the date of death. Not “hopeful future value” or “what it might get with new windows and a lick of paint.”
According to HMRC’s Inheritance Tax manual (IHTM), the value must be “the price which the property might reasonably be expected to fetch if sold in the open market at that time.”
So when agents over-inflate values just to win listings, it can result in:
– Higher inheritance tax liability (based on inflated estate value);
– Delays due to HMRC enquiries if they suspect the value is off;
– Frustrated beneficiaries wondering why the sale is dragging on;
– A lengthy and painful sales process.
One property, two very different outcomes
A case in point: we recently helped with a probate property valued by a local agent at £65,000. After six months of no serious interest, two price drops, and some bruised egos, it finally sold at auction for £48,000 – which, by the way, was the real market value all along.
Had the auction been used from day one, the estate would have:
– Avoided months of wasted time,
– Achieved the same (if not better) sale price,
– Not had a 6 month headache possibly incurring numerous additional costs.
Why surveyors should be doing the valuations
Ideally, probate valuations should be carried out by an RICS-qualified surveyor, who is independent, paid for their valuation (not the sale), and bound by strict guidelines. Their job is to assess the property dispassionately. No upselling, no agendas.
But often, executors default to estate agents because it’s free and familiar. And let’s not ignore the elephant in the room: many solicitors have cosy relationships with local agents, where probate instructions and referrals bounce back and forth like tennis balls at Wimbledon.
In these cases, the estate isn’t the priority, the relationship is.
Why auction is the smarter choice (especially for probate)
Let’s be blunt: if a property is tired, unmodernised, or just needs a clean break, auction should be the first option, not the last resort.
– It’s fast,
– It’s transparent,
– It’s unconditional (no chains, no back-and-forth),
– It often attracts cash buyers who are ready to complete quickly.
At Probate.Auction, we specialise in exactly these kinds of sales. No fluffed-up valuations. No mysterious “investors” who somehow always find their way back to the agent. Just a realistic price, honest advice, and a sale that actually happens.
Final thoughts
I’ve been in estate agency long enough to know how the game is played, and now that I’m out of it, I can finally say what many executors wish they’d known sooner:
Not all valuations are created equal.
If you’re dealing with a probate property, get the facts. Get a proper valuation. And above all, ask yourself: is the person valuing this property doing so with your best interests in mind, or theirs? If you want a fair, fast, and fuss-free way to sell a probate property, we’d be glad to help. Visit us at www.probate.auction to find out more and get in .
