What’s your house worth when selling or raising finance? How are property valuations worked out; what factors affect the value of a property?
Wondering how much your house is worth but don’t want to go through expensive surveyors or estate agents to find out? Why not take a look at Flying Home’s free home valuation tool, the handy calculator lets you quickly check the estimated market value of your home in just a few clicks, simply enter your postcode for an estimated property value.
You can also use the assessment tool for more than just one property to compile a house price comparison report.
How much is a house actually worth?
A house is worth what someone is prepared to pay given a reasonable marketing time scale and sufficient exposure to the market (usually by advertising on a National property portal, i.e., Rightmove or Zoopla for three months or more).
To estimate a value just find houses similar to yours, look at the advertised selling price and then compare with the sold prices of similar homes.
How do you assess the value of your home when putting it on the market?
Home valuations from professionals are simply a guide therefore if you want to sell your house quickly, then you may need to accept less money as there will be little time to market your home properly to prospective buyers. If you have a reasonable time-scale to sell, then more competing buyers can be found who will bid the house price up, and you’ll get a higher price when selling. A reasonable marketing period is 6 to 9 months to get the most value for selling your home. Pricing is important at the outset, price too low and you’ll get an instant buyer but you’ll be left wondering if you could have got more. Price too high and no one will even look at your property on Rightmove or Zoopla. The more exposure your property gets, the more chance you have of finding a buyer.
How will mortgage or finance companies work out my house valuation when I’m raising money for it?
Mortgage companies will arrive at a lower value for your home, perhaps using a three-month selling period because they don’t want to hang on to your home if they need to repossess it. Mortgage companies repossessing homes want a quick sale and will look for buyers in a position to purchase fast. The mortgage company may even consider auctioning the property, and therefore a lower sale price would be expected.
How can Flying Homes help me?
Flying Homes buy houses fast for cash. We’ll give you a free estimate to buy your house today. We’ve added the house valuation calculator in response to customers asking, ‘how much is my home worth, what’s the value of my property?’ We base our offers on historical house price data, sold house prices, home price increases and many other factors.
What are the benefits of a free house valuation – a price comparison report of your house?
- You will be able to sell your property through an agent knowing its real value.
- We check home prices for homes with Zoopla’s current estimated values, so you don’t have to!
- Every house or property valuation is cost-free and without obligation.
- Negotiate favourably with quick sale firms, as you’ll know your home’s worth.
How is a property valuation worked out?
We’ve put together a few of the key stages of how we work out a property’s value.
It includes three critical Stages:
Compare the house prices of similar properties for sale
We compare current advertised house prices of properties for sale that are similar to yours on the Rightmove ‘homes for sale’ section, or Zoopla, to estimate the value of your property which gives a good indication of how much your house is worth.
Check the sold price of properties using the Land Registry or Zoopla websites
We check sold house prices, they vary enormously from town to town, but by looking at how much a house sold for using the Land Registry or Zoopla websites, then we can estimate property values better. House valuation calculators help to do just that, checking sold house prices and factor in past house price increases.
Are there any special features or amenities impacting on a property’s value
Of course, all homes are different to others; some have larger plots, have garages, extensions, construction defects, in low crime areas or have an upgraded décor.
These factors can all affect property values. This point is critical, as it depends on who is looking to buy a home like yours at that point in time. Also RICS valuers professional opinions’ will always arrive at different valuation figures for the same property. Therefore, special amenities or features can impact on house values depending on who is giving the opinion.
A quicker sale usually means a drop in price. Ultimately what determines how much a house is worth is ‘supply and demand.’ If demand is greater than supply, then this will push up house prices. More desirable larger properties in better areas with good schools and transport links will attract a premium over similar properties in less desirable areas.
Is there any formal guide to assessing the value of a property?
To set standards for valuing property, the Royal Institution of Chartered Surveyors (RICS) definition is that the market value of a property is:
‘The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.’ Source: RICS.
What factors affect the value of my property, what can I do to increase the value when selling?
Many factors can increase or reduce the value of your home. Some of these are outside your control, such as living in a crime-ridden area or next to electric pylons or a wind farm. Other negative factors can turn positive. A messy, unkempt garden given a makeover. An untidy house spruced up, decluttered, small maintenance jobs carried out, and your home can be transformed making it much more appealing to buyers who’ll pay more. These are factors which potentially increase home values.
What percent of full market value can I get when selling my house to companies like Flying Homes?
When you sell your home fast to Flying Homes, you can expect to receive in the region of 75% to 95% of your property’s current market value. Every fast house buyer has their way of evaluating a property and making an offer. Generally speaking, you will be able to cash in on more of your home’s value if you wait a few weeks. If you need a sale within days, you should expect to receive nearer 75% of market value. Selling fast to a property buyer can be useful if you need a quick sale as a result of ill health or job loss, etc.
|Selling timescale||Percentage of market value||Type of buyer||Guaranteed sae|
|Seven days||75% to 80%||Property Buyer||Yes|
|six to eight weeks||80% to 85%||Property Buyer||Yes|
|Eight weeks||75% to 85%||Auction||No|
|Thirteen weeks to six months||80% to 95%||Estate Agent||No|
What is meant by a percentage of market value?
In many cases, the real value of a property is what someone is prepared to pay for it. For example, take the value of a house advertised with a ‘High Street’ estate agent, the asking price is usually structured with the intention of the property being on the market for many months, or even longer.
The advertised value is not necessarily what the property is worth in today’s market. The vendor may have waited several months to attract a purchaser prepared to make an offer near to the advertised price.
Then the Estate Agent will recommend a series of reductions until buyers show interest. ‘High Street’ estate agents often inflate property prices to secure the vendor’s listing instruction, knowing they face competition from other agencies in the area. Sometimes the successful firm also like to leave a margin to be able to discount later.
At Flying Homes, we calculate the accurate, current market value of a property, using real-time data of comparable sales activity achieved locally and recently. Plus, of course, we use our very sophisticated valuation software.
Are there fees or costs to pay, or any long contracts if selling to a property buyer?
There are no costs or upfront fees involved in the sale of a home with Flying Homes. We make our money from buying your home at less than its full value and reselling it to other quick property buyers or on the open market at a higher price.
If you sell your house fast to Flying Homes, then we’ll account for all conveyancing and legal costs, even if you need to sell quickly to stop your home from being repossessed, etc.
There are no long contracts; some companies that buy houses quickly operate using option agreements, but we don’t work this way if you sell your property to us.
Do other property buying companies charge upfront fees which I’ll lose if I don’t proceed with a sale?
Yes, some home buyers will charge you a valuation fee at the very start of the process, often with the promise that it’s refundable or knocked off the price they offer you. However, other, less reputable firms will renege on this promise so get everything in writing if you agree on a quick sale.