How to make sure that your property valuation is accurate before putting it on the market
When considering selling your home, the first question is usually, "How much is my home worth?" So, how is the value of your home calculated and can you do anything to improve that figure? Read this article to find out.
Valuing a property is a skill that considers many factors to estimate a likely price that the property could sell for. Almost every seller hopes to sell their property for the highest possible price. So, as estate agents, we are gathering evidence to establish where a property would sit within the market and what the highest possible selling price might be. We take into account how your property will compare with other similar properties, the appetite of buyers within the property market, and how likely it is that a buyer would be willing to pay that price for that property to suggest a potential price range to you.
There are other things to consider, broader issues that, unfortunately, we have no control over, such as the availability of mortgage funding and the economy when you come to the market. These concerns will impact the wider market as a whole but will still need to be taken into account when valuing a property.
When an estate agent initially researches for a valuation appointment, they gather evidence and information about other sales within that postcode or street before they have seen the property. Land registry information about the prices achieved for sales in your area and how quickly those properties found a buyer.
The economic information that impacts property values is relevant because the agents can only really use up-to-date comparable evidence. Any evidence older than 6 months loses its potency because economic factors will have altered the market overall during that time. Any evidence or valuation estimate must be adjusted for today's marketplace.
Then, once the agent has physically seen the property and taken in all of the selling features and USPs that the property has to offer, they will be able to properly assess how the property compares to the rest of the market. Perhaps a house on the street sold, but yours has a new kitchen, or you may have put on an extension. Maybe there is a garage where you have a driveway. Perhaps there is an extra bedroom or some other differences. With all of this information, there will be adjustments to the price to accommodate those differences, both positively and possibly negatively, to come up with the estimated valuation.
One of the main reasons that some sellers are sadly left with their property on the market without a sale is that, at the point of valuation, the evidence used was inaccurate and outdated. Because the market last year was inflated, data from this time or earlier will be outdated and show a higher figure than is accurate.
Of course, a property valuation is nothing more than an opinion, but it is an educated opinion and is based on evidence. If the agent is gathering data from a year or two ago, those figures would be inaccurate considering the economic changes from last year to now; it would actually over-value your home.
Unfortunately, as the market has steadied, some agents may be trying to gain more business by suggesting an inflated price to try and encourage you to choose sellers to use them to market their home, but that is a whole other can of worms that we can save for another blog post.
I'm sure we don't need to go into too much detail about the danger of over-valuing your property here, but the crux is that if you over-value your home, you will not receive many enquiries or viewings. Over time, this lack of demand in your property will result in reducing your price or, at the very least, accepting lower offers.
So, how can you be sure that your valuation is accurate?
- It has been based on up-to-date figures and data.
- You have been shown evidence of comparable properties that have sold recently in your area.
- The estimate is adjusted accordingly so that your home sits within the price bracket accurately and is targeted towards the most ideal buyers for a home like yours.
Before you launch your property to the market, ensure that your valuations have been estimated based on current data and up-to-date figures so that you can be confident that your pricing strategy is just right.
If you would like your home valued accurately so that you can get ready for selling, get in touch with our team of property experts without delay.