How an estate agent values your home
Are you thinking of selling your home? While it’s possible to get a rough guide on what your home could be worth online, the best way by far to get an accurate valuation is to ask a local estate agent.
Firstly, here’s how a property’s value is worked out:
There are, of course, the most obvious – and probably most important – factors:
- Local prices
Then there are the factors that are unique to your home and situation – these are slightly more intricate and almost impossible to take into account without viewing the property. Things like:
- The condition the house is in
- Any extensions or changes you’ve done to the property, and the quality of the work
- Internal elements – things like flooring, double-glazing, insulation, finishing, etc.
According to Martin Coombs, a specialist in home-valuing for Bridges Estate Agents, many other things can also dictate the value of a home: “Understanding the scope for improvement or seeing the quality of updates and the finish can both change the value of a property and the volume of interest a home will attract.”
Ultimately, the asking price of the home will be determined by a combination of all these factors together with the knowledge of how the local market is behaving at the moment.
What’s the current demand for this type of property? How much have they sold for recently? How long is it taking to find a buyer? Knowing the answers to all these questions is crucial to getting the price right.
An online valuation could do a decent job at calculating those first, bigger aspects of the appraisal. By drawing on available data such as sold prices, it is possible to get a fairly good idea of what the property may be worth.
But because homes are as unique as the people who own them, there will always be variables that even all the data in the world would not pick up on.
The key questions you’ll be asked at a property valuation
Rob Sabin, director at Miles & Barr, says “An in-person valuation will allow the estate agent to see the property’s condition, and get a feel for the space and size of the rooms.
You should also expect to be asked what attracted you to buy your home, and why you love living there. Though these points may be overlooked by some, they’re significant because they help to bring out your property’s selling points, and could affect the asking price.
Rob goes on to explain that there are other important components that help set the price, and which go beyond the scope of the physical property itself.
“At a valuation, a key question we need you to consider is whether you would like a quick sale, or do you want the highest price possible for your home?” A seller that requires an urgent, speedy sale, for example, will require a different strategy than one who hopes to sell within the next six months.
And a last – but very relevant – point is that an experienced estate agent with strong knowledge of the local market will also be able to advise you on what you might be able to do to your home to increase its value. Would adding an extension, a conservatory, or an extra bathroom be a worthwhile investment? This varies hugely from property to property, so it might be a good idea to get someone in and talk this through.
If you are thinking of selling soon why not call one of our property consultants for advice and a valuation? We would be delighted to help.
Modified article taken in part from an article from:
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All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.