Selling a house is a complicated and often time-consuming process. However, valuing your property correctly for its market is perhaps the single most important factor involved in securing the best possible sale price. Find your property’s value with the help of our short guide.
Set the asking price of your home too high, and you risk alienating potential buyers before they even view your property. Set the price too low, and you run the risk of devaluing it in the eyes of customers.
Estate agents with detailed knowledge of your local area – and a track record in selling houses similar to yours – will be best placed to deliver an accurate valuation based on some factors. Whether you choose to enlist the help of an agent or go it alone, having a full understanding of the factors that influence house prices will allow you to set an asking price that will culminate in the highest sale price achievable.
Factors That Dictate Property Valuations
The market dictates house prices – what people are willing to pay for them. The process of estimating a home’s value is involved, and it can never be an exact science. However, it is usually possible to predict a selling price within a limited range based on some criteria used by the Royal Institution of Chartered Surveyors.
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The number of bedrooms
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The fixtures and features of the home
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The age and style of the property
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The level of workmanship involved in the property’s construction
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The property’s exact location and the surrounding amenities
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Any liabilities and tenancies associated with the property
Predicting house prices is notoriously difficult in some areas, but an estate agent or surveyor with specific knowledge of your area can make an educated estimate based on recent sales and the current houses for sale in the neighbourhood.
Valuing Your Property by Comparing House Sales in Your Area
Although there is more than one method of valuing your property, the most commonly used method involves researching historical sold house prices and comparing sales of similar properties, in the locality. Check via a local estate agent and research using some of the online portals like Rightmove, or pay for a surveyor who will perform a detailed survey to find property for sale in the area. Some detailed information gathered on the properties found will then be applied to your home to formulate an initial valuation and the asking price.
How to value your property, the main factors taken into consideration:
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When the property transactions took place.
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The property’s size.
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The condition.
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The location.
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Local building regulations.
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Final sale prices.
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How quickly properties are selling currently.
Location, Location, Location
Buying a home involves an emotional connection for many people, and this can lead to some strange fluctuations in house prices around the UK. Regardless of how big, well-appointed and reliable a property happens to be, it is only worth what someone is willing to pay for it. For instance, a highly sought-after area with a low supply of property but exceptional demand might attract offers that far exceed the marketed price. For some people, a home is not just an investment; it is a permanent refuge – something that transcends monetary value. Some people would rather find a property to rent rather than buying a home that is anything less than perfect in every way.
