Valuing property – an Estate Agent can do it, So why can’t you?
After all, when it comes to valuing property, an Estate Agent is, in fact, giving their opinion on how much they think your property is worth and, let’s be honest, will probably keep their opinion in line with how they can gain the most from the sale of your property.
Ultimately, there is the possibility of an Estate Agent undervaluing your property for a quick sale, or overvaluing it to win you over as a customer.
Although most reputable Estate Agents will, of course, give a well-researched, informed valuation of your property, so you can really be sure of your property’s value, here’s a guide to valuing your property from Quick Move Now.
The value of your property is down to your buyer and their mortgage lender:
When it comes down to it, the value of your property depends on what your buyer will pay for it.
Unfortunately, the value of your property does not depend on how much you paid for it, nor how much you have spent on it, and is neither based on what you would like to receive for it.
In fact, the value of your property relies on what your buyer will pay for it. Overvaluing a property will actual deter potential buyers. In fact, homeowners in England and Wales over-estimated the value of their property on average by 6.8 percent in 2016.
In addition to what your buyer will pay for your property, the value of your property is based on what the buyer’s mortgage lender thinks it is worth.
The price decided upon by the buyer’s mortgage lender will be based upon recent sales of similar properties and what price these properties are advertised at. The valuation of the property will also be confirmed by a survey later in the process.
When valuing property, Look at what has sold recently in your area:
The value of your property will be similar to what surrounding properties near to you have sold for recently. Therefore, it can be beneficial to do some research, perhaps referring to the Land Registry, as to how much similar properties around your house are selling for.
It should be noted, however, the Land Registry releases house prices 3 months after the sale, and therefore it is best to only refer to properties sold in the last 6 months for your most accurate valuation on your own property.
Look at what similar properties are selling at:
Have a look at similar properties to yours in your area and see what they are being advertised at, that will give you an idea as to how much you could put your property on the market for.
Some factors to consider when thinking about your property’s value:
What can your property offer over and above other properties? Or what ‘luxuries’ does it feature?
Perhaps you have three or four double bedrooms? An en-suite? A large garden, a garage and off-street parking? All of these additional features will add value to your property.
Ultimately, when deciding on the value of your property, you should compare other property prices sold within the last six months in your area, and compare your property with them.
For example, you may have seen a property similar to yours, on sale for £220,000, however, your property is in a better location, further from the road with better views. Therefore, you could value your property at a higher price.
Don’t tell your Estate Agent how much your property is worth:
Never declare to an estate agent how much you think your property is worth or how quickly you need to move. Simply take their valuation, and make your decision based on a few opinions. There is no harm in having a visit from multiple estate agents. After all, you don’t want to be put under unnecessary pressure from pushy estate agents. Moving house is life-changing enough, without any added stresses and strains!