Thoughts on using estate agents rather than surveyor for IHT purposes?

[IHTProbate]

Siblings seem keen on using estate agent quotes for IHT purposes. I have concerns (especially as one of the agents is a chain well known for overvaluing). We are cash poor and wondering if that’s driving the decision. Thoughts? I feel quite strongly that need to have a surveyor - house likely to go above £1m. TIA. Solicitor pretty uncontactable.

One estate agent has come up with a 100k range and the bottom of that range starts at 150k above the lowest estate agent. It’s a huge upfront layout, plus the interest charged by hmrc and the interest rebated from hmrc are woefully different.

If there is a 250k difference between estate agent A point estimate and top of estate agent B range estimate, then clearly the house is likely to be worth £1 million or more.

At that price point, a redbook valuation could easily pay for itself through reduced taxes and interest on taxes.

"No, surveyors in the UK do not sell houses; they assess, survey, and value properties, acting as an independent expert. While estate agents sell, chartered surveyors (RICS) provide independent structural reports and valuations for buyers, or pre-sale advice to sellers. They do not handle marketing, viewings, or legal negotiations." [source: purple bricks]
"No, surveyors in the UK do not typically sell houses; that is the role of estate agents. Surveyors are independent professionals who assess a property's structural condition and value. While they don't list properties, sellers sometimes hire them for a pre-sale survey to fix issues and speed up the sale, or to get an independent valuation." [source: Scrivens & Co.]
So where can I buy a house from a surveyor please? Do they have offices on the high street, where I can see their properties for sale?

So where can I buy a house from a surveyor please? Do they have offices on the high street, where I can see their properties for sale?

LOL! OMG Of course they don't sell houses but THE ISSUE IS VALUATION.

You said:

"Surveyor's don't sell houses, so I don't think they'll be much help"

You clearly don't know what you are talking about because for an official valuation in a situation when HMRC (or any one is likely to dispute value) a RICS surveyor is exactly what you need.

The fact they don't sell houses is neither here nor there. It doesn't mean they won't be much help. The fact that you said that a surveyor "would not be much help because they don't sell houses" shows that you have no understanding of what a Red Book Valuation is.

Your further post confirms it.

If the estate is definitely going to be subject to IHT then there is no point at all in paying for a professional valuation.

The basic objective is to put as low a valuation of the house as you can get away with, thereby minimising the amount of IHT you have to pay.

For most ordinary houses an online valuation from Zoopla or similar will do - just knock, say, 10% off, and if asked you can always say you did so as it needs work doing.

When you submit the IHT405 giving details of the house and its value it will be sent to the District Valuer. The vast majority are accepted without query, provided the valuation doesn't appear to be seriously out of line. If the DV thinks it has been significantly undervalued they will say so, and you can then negotiate with them to agree a value.

Only if and when you get to that stage is it worth paying for a RICS surveyor, as they can hopefully save you more than the cost of employing them.

If the house is to be sold it doesn't really matter what value goes on the IHT405 as it will be adjusted following completion of the sale. Finally, it's always better to pay CGT than IHT as the rates are much lower.

Solicitor has told us to use a surveyor if estate is over threshold for IHT. It helps prevent issues with HMRC.

As I said above, it's almost certainly a waste of money. Solicitors often do this in order to line the pockets of a mate who's a surveyor at the estate's expense, in the hope that the surveyor will, in turn, refer clients back to them.

If this is for an inherited property then you ask 3 estate agents to value for probate, there's no charge.

If this is for an inherited property then you ask 3 estate agents to value for probate, there's no charge.

You get what you pay for.

Estate agents routinely overvalue to get in the business. This may not matter if you are under the IHT threshold but if you are not, it is worth spending money on getting a proper valuation.