RICS Homebuyer Survey and Valuation What the Valuation Adds

When you book a RICS homebuyer survey and valuation, you are really buying two things in one report: an inspection of the home’s condition, and an independent opinion of what it is worth. Most surveyors offer the Level 2 survey with or without that valuation, so the question many buyers ask is simple. Is the valuation worth adding?

The answer depends on how confident you are in the price you have agreed, how you are funding the purchase, and what you plan to do with the information. For some buyers it is the most useful page in the report. For others it adds little to what their lender already provides.

This guide from ASG Consulting explains exactly what the valuation section contains, how it differs from a mortgage valuation, when it is worth paying for, and what to do if the figure comes in below your offer.

What Is a RICS Homebuyer Survey and Valuation?

The RICS homebuyer survey and valuation is now officially called the RICS Home Survey Level 2 (survey and valuation). Many people still know it by its old name, the HomeBuyer Report.

It combines three parts:

1. A physical inspection of the inside and outside of the home and its permanent outbuildings.
2. A written report with traffic-light condition ratings for each main part of the property, advice on repairs and maintenance, and points for your solicitor to check.
3. A valuation, which forms part of the same report.

RICS describes the aim as helping you decide whether to go ahead with the purchase and what is a reasonable price to pay. That second point is what the valuation adds.

Who Can Carry It Out?

The survey must be carried out by an AssocRICS, MRICS or FRICS member of RICS. Because this version includes a valuation, the surveyor must also be a member of the RICS Valuer Registration scheme. It is worth checking both when you book.

If you are still deciding between survey levels, our guide to the homebuyer survey vs full building survey explains when a Level 3 is the better choice.

What the Valuation Section Includes

The valuation section gives you two figures, both based on the date of the inspection. RICS sets out the details in its official description of the Level 2 survey and valuation service.

Market Value

This is the surveyor’s opinion of the price the home should sell for between a willing buyer and a willing seller, after proper marketing, with both sides acting knowledgeably and without pressure. It is an independent figure: the surveyor works for you, not the seller or the lender.

The Assumptions Behind the Figure

Every market value rests on assumptions, and the report lists them. The main ones are that:

• Parts of the property that could not be inspected have no significant hidden defects.
• No dangerous materials or contaminated ground affect the property.
• The home is sold with vacant possession and connected to mains services.
• All planning permissions and building regulations approvals are in place.
• Furniture, removable fittings and sales incentives are not included in the figure.

If any of these turns out to be wrong, for example an extension has no building regulations sign-off, the value may need revisiting. That is one reason to share the report with your solicitor.

Reinstatement Cost

The second figure is the reinstatement cost: an estimate of what it would cost to rebuild a typical home of the same type to its current standard, using modern methods and meeting current regulations. It includes garages, boundary walls, site clearance and professional fees, but not VAT except on fees.

This is not the same as market value. It is the figure you use to set your buildings insurance cover, so you are neither underinsured nor paying for cover you do not need.

Level 2 With Valuation vs Without vs Mortgage Valuation

It is easy to confuse these three. Here is how they compare:

The key difference is who the valuation serves. A mortgage valuation answers one question for the lender: is the home good security for the loan? A Level 2 valuation answers your question: am I paying a fair price for this home in this condition?

When Is the Valuation Worth Adding?

Add the Valuation If

• You are a cash buyer. With no lender, there is no mortgage valuation at all. Your Level 2 valuation may be the only independent check on the price.
• You think you may be overpaying. In a competitive market, or after a bidding war, an independent figure tells you whether your offer is in line with comparable sales.
• The survey is likely to find defects. A valuation that reflects the home’s actual condition strengthens your hand if you need to renegotiate.
• You want a reliable insurance figure. The reinstatement cost helps you set buildings cover accurately from day one.
• You are buying an unusual property. Fewer comparable sales make prices harder to judge, so an independent opinion is more valuable.

You May Not Need It If

• You are buying a typical home on an estate with plenty of recent, similar sales.
• You are comfortable that the price is fair and do not intend to negotiate.
• You are buying with a large mortgage and are relying on the lender’s valuation as a broad sense check, while accepting it is not addressed to you.

If you are unsure, ask your surveyor when you book. A good surveyor will tell you honestly whether the valuation is likely to add anything for your particular purchase.

If you already own your home and just want to know what it is worth, a homebuyer survey is not the right tool. Our guide to instant house valuations in Liverpool covers the quicker options.

What If the Valuation Comes in Below Your Offer?

It can happen, especially in a rising market where offers creep above recent sales. If your surveyor values the home below the price you agreed:

1. Read the reasoning. Check which defects or market factors the surveyor took into account, and ask them to explain any you do not understand.
2. Check the comparables. Ask which recent sales they relied on and how they compare with the home you are buying.
3. Separate value from condition. A low figure driven by serious defects is a strong negotiating point. A small gap in a busy market may simply reflect strong demand.
4. Get quotes for any serious repairs so you can put a cost on the shortfall.
5. Decide your next step. You can ask for a reduction, ask the seller to carry out repairs, proceed at the agreed price, or withdraw before exchange.

An independent valuation will not force a seller to drop the price. It does, however, give you a professional, written reason for asking.

Changes Coming to RICS Home Surveys

RICS is updating the Home Survey Standard that governs these reports. It consulted on a draft second edition between August and October 2025, and its latest update says it intends to publish the final version in the first quarter of 2027.

The draft proposals included:

• Clearer descriptions of what each survey level covers, after RICS research found many buyers did not understand the differences.
• The option to include a valuation at any survey level, not just Level 2.
• Proposed new names for the levels, such as basic, intermediate and advanced.

These are proposals, not final rules, and RICS has said the timing may be affected by wider reforms to the home buying and selling process. For now, surveyors continue to work to the current edition, so a Level 2 survey and valuation booked today follows the rules described in this guide.

RICS Homebuyer Survey and Valuation: Frequently Asked Questions

Book a RICS Homebuyer Survey and Valuation

The valuation turns a condition report into a price check. For cash buyers, competitive purchases and homes likely to need work, it is often the part of the report that pays for itself.

ASG Consulting is a RICS-regulated building surveying consultancy serving homebuyers across Liverpool, Merseyside and the North West. Our homebuyer survey in Liverpool is available with or without a market valuation. Contact ASG Consulting for a quote on both, and we will help you decide which suits your purchase.