Three valuations for house price for probate

[dominoman]

We received 3 valuations for my deceased father's house, from 3 seperate estate agents
1. Market Value 750, probate value 675
2. Market value 700, probate value 600-650
3. List value 700, expect to sell for 675.

Can we use the lowest (600) for probate? Or what would you use in this case.

There will be IHT to pay as he is over the IHT free allowance and RNRB

[pawncob]

You could use an average of the three or the middle valuation. HMRC will either accept it or (more likely) instruct the DV to value it. You then negotiate a value with him which he sends to HMRC.

[AGoodman]

Probate value IS market value so if they are expressly giving you a different value, I would not know where to start. I can only think they interpret "probate" as "the lowest valuation you might get away with". It doesn't help that they are mixed up with market appraisals which are not necessarily an independent view of the value.

Also, if HMRC challenged your valuation and you used these letters in support, they would clearly be looking at the 750/700/675 figures.

It sounds to me as though, at best, you could go for £675 - the value you could expect to obtain on the market.

[dominoman]

Thanks. Yes, you're right of course. And now that I read my question again it does sound a bit odd. If we use the lowest of the valuations we would only keep that letter in support so wouldn't be showing the higher ones to HMRC.

There are no directly comparable houses nearby (it's on a very unusual plot) so HMRC presumably leaves a bit of leeway before challenging.

[AGoodman]

If in doubt, you could ask for a proper (probably paid for) valuation, which gives you a single figure that the valuer will stand behind and defend if the District Valuer (HMRC) queries it.

[maths]

As AG points out probate value is market value. Either the valuers don't quite understand what they were doing or why, or perhaps more likely, they were saying to you if you sell we can get you £X but if it's probate then we suggest you could probably get away with the lower figure £Y. Differences between probate and market of £75k, £50/100k and £25K are all, apart from the last, extremely significant representing rom HMRC's perspective extra IHT of £30k, £20/40k and £10k.

At theses levels HMRC may well, as pawncob mentions, appoint the DV to provide then with a figure.

I would be inclined to approach them and ask for a quote for a formal probate valuation and that should HMRC "attack" their figure you will expect them to defend it on your behalf for "free".