You can't use water for checking valve sealing. Water is too "thick" and any carbon or oil will prevent it from flowing through a fair sized gap, unless you put it under pressure, even then it wouldn't be a good test medium.
You need something like brake or carburetor cleaner or lacquer thinner. Gasoline will work but not recommended due to flammability.
Other than that, I agree with what Kevin said. It's a lot of work to install a set of heads and then remove them if anything turns out wrong with them. A good machinist will also check for cracks.
Make sure the cylinders, rings and pistons are in good condition. Removing heads is a big percentage of an overhaul, now would be a good time to go through the engine.