Your home may be invaluable to you and
your loved ones, but it’s also got a market value.
But how is a property valued? Is there
a magic formula? How does an agent decide its worth? And why might your
property be valued less than the house two doors down?
In this quick read, we look at
different factors that affect the value of your property.
The important thing to remember is
that estate agents live and breathe house prices. You might think they’ve
plucked a number out of thin air (especially if you don’t agree with their
figure) but there’s a lot they consider before pricing your home.
Facts and figures
Before valuing a property, it’s
important to consider what other sales have achieved in the surrounding area
(that’s sold prices, not listing prices). Agents will look at similar
properties to yours and what they have sold for. To avoid overvaluing your
home, they will also take into account similar properties that haven’t sold at
all or have sold for considerably less than they were priced at.
Another factor in valuing a home is
the price per square foot. This amount varies from area to area.
Unsurprisingly, city locations such as Central London boast the highest price
per square foot, while many rural areas can come in at considerably less.
The property
When valuing a property, an agent will
look at its general condition. Does it need lots of repairs? Has it been
renovated recently? Is there potential to extend? In addition, things like the
heating system and boiler, electrics and plumbing will play a part in
determining the overall value.
The way the property is presented will
also influence the selling price because a cluttered, messy home is harder to
market (regardless of the décor) making it more difficult to attract potential
buyers. (That’s why an agent will always advise sellers to have a clear-out
before pictures are taken.)
Since the pandemic, the outside area
of a property has had a huge impact on its value. Gardens now play a much
bigger role in the sale of a home and factors such as size, whether it’s
overlooked, if it’s steep and/or potential for improvement could affect the
overall value of a property.
Other factors that an agent will
consider when valuing a property include:
–
Number of bedrooms
–
Size and layout of the property
–
Potential to extend
–
On or off-street parking
–
Location and proximity to schools and amenities
–
Type of road (e.g. a cul-de-sac location or busy high
street).
The seller
A good agent will know and understand
a seller’s position before valuing a property. There’s a difference between
sellers who need to sell ASAP and those that can wait a while for the right
offer to come along. So, if a seller needs a quick sale, it might be worth
valuing the property at a slightly lower price to attract more viewings.
If
you’re looking to sell your property, contact Ridgewater Sales and Lettimgs – we’ll value your property
accurately and get you on the move.