Understanding this could put more money in your pocket when selling your home!
When considering moving house, one of the main questions that homeowners have is, "How much is my house worth?" But what factors can affect the value of your property, and is there anything you can do to maximise the value before you start to market?
Many factors are taken into account when estimating the value of a property, some positive and, of course, some that are negative. An experienced estate agent will consider all factors and, based on comparable properties sold recently in the local area, can estimate a value the market will tolerate and buyers will pay.
Of course, there is no guarantee of a value until you have an offer on the table from a buyer, so it is an estimate, and therefore there is more than likely a range that the property will sit within rather than an exact price.
The main things that help to decide on a value range for a property are location, size and condition, as well as the market condition and the appetite of potential buyers at the time.
Market: The housing market is entirely out of your control, and supply and demand and economic factors are unpredictable, so the general range of property values will be dictated by these factors to a large extent.
Location: You can't change or control the property's location, which is why it is such a critical consideration for buyers. Crime rates, proximity to amenities (shops etc.), transport links, and noise/air pollution are all factors that will affect the value of your property, so make sure that you highlight the positive aspects of the location to potential buyers.
Size: Usually, bigger is better for property, and adding square footage will always add value, but it is not guaranteed that the cost of adding that square footage will be recouped exactly. You may spend £50k on an extension that only increases the value by £30k, so it isn't advised to increase the size of the property just for the sake of a sale.
So can you do anything to improve the value of your home?
There isn't much that you can do about the location of a property or the size; although it is possible to extend a property, it is not always economical. These are factors you can't change and have no control over, but there are other factors you could change to increase the value of your property.
Style: Period properties filled with gorgeous period features are always popular, and if the property is well presented and styled, these features are sure to attract a higher price than a period property without original features. If you have a more modern property, ensure that the styling is in keeping with current trends to attract a wider audience of buyers.
Condition: If the property is in excellent condition and presented in a way that will be favourable to most potential buyers, it will likely achieve a higher sale price. Conversely, if there is lots of work, you may find that the possible sale price is reduced to accommodate the costs of renovating.
Potential: There is a strong market for properties that have potential, whether that is conversion, renovation or extension, so if this is some potential with your property, make sure that you highlight it in the marketing so a buyer can see clearly that your property has potential to improve and therefore ultimately increase the value.
Names/numbers of the house: Studies show that a named house is valued higher than one with simply a house number. Perhaps you could register your property with a name to increase that value before you try to sell?
Kerb appeal: You might have the most beautiful property internally, but if it looks terrible from the outside, you will have to work so much harder to get viewers across the threshold. Things looking a bit rough around the edges, a bit of a mess or painted a strange or garish colour could mean that the interest is lower and, therefore, the potential offers will be lower.
The value of a property, or at least the general range of the value, is mainly set by factors that you can't control, but with a few tweaks, you can make sure that your property sits at the top of that range.
Use the marketing of the property to highlight the main features to potential buyers, as well as the finer details that can add a few thousand here and there to really maximise your possible sale price.
If you're thinking about selling your home, why not chat with one of our experts to ensure that you can achieve the highest price possible for your property? They will give you an estimated valuation and advice about improving that figure before you take the plunge and put your home up for sale.