06 tips on how to get an idea on the value of your property

6 tips on how to get an idea on the value of your property

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02 / perry power / 6 tips on how to get an idea on the value of your property

how to get an idea on how much your house is worth yourself…Before contacting any estate agents, my advice is to do your research so you have a good idea as to how much your house is worth before you speak to any professionals. The figure you have in mind for your property should be realistic and supported by market evidence.

Let’s go through a few tips on how you can arrive at a realistic valuation of your home.

There is no science to this but before you can make the decision as to whether it is actually feasible to sell, you first need to have an idea of your property’s value.

“happily, i’m here to offer impartial advice, suggestions and tips”

Base the figure on factual evidence, not desire

One of the most common mistakes I come across is that people (including estate agents) base their valuation on the asking prices of similar houses in the local area which, believe it or not, can sometimes be wildly inaccurate. As an example, say there is a house for sale in your road which is similar to yours and is currently being marketed at £400,000. You may have a larger garden and newer kitchen so the natural assumption would be that your property must then be worth at least £430,000, right? Wrong.

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Don’t fall into the trap of being confused between the marketed price of a property and what it’s actually worth. The other house may only have a true value of £370,000, which would then make yours £400,000. Consider that the other property may have sat on the market for a long time or perhaps the owners were advised to market it at £30,000 over its true value. This causes a vicious circle and leaves many properties stagnating on the market.

The key to valuating a house accurately is to look at the recorded selling prices of similar houses in your area, and then adjust the approximate value of your property accordingly. The Land Registry is a great place to start.

You may also be able to find full details of most houses recently sold in your area, by searching the rightmove archive. This helps to see what condition the properties were in, so you can compare the prices more accurately to that of your house.

I offer FREE desktop valuations on properties using this same method, which help by giving you a rough guide to what sort of price you should attach to your home.

http://houseprices.landregistry.gov.uk/

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additional power tip

Where possible, try and work off square footage. Most houses recently sold or for sale will have a floor plan showing the total square footage.

Here’s how to work out the price per square foot:Work out the square footage of your house and divide the selling/asking price by the total square footage.

Multiply the square footage figure by the price per square foot in your comparable house.

NOTE: It’s more accurate if your house is in a similar location to the one you are comparing against.

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For example, you have discovered that a 1300 sq foot house a few doors down, sold for £400,000 four months ago.

400,000 / 1300 = approx £307 per square foot.

You have worked out that your house is only 1000 sq ft so 1000 x 307 = £307,000

The comparable house sold four months ago and you know from The Land Registry that market prices have increased by about 4% in that time so £307,000 + 4% = approximately £320,000

Your house was in slightly better condition than the other, so it would normally be safe to presume that you could add another 10% onto the price, which would make the value of your house approximately £352,000.

This figure may not be the exact value of your house but it provides a good platform for calculations and is certainly better than plucking a figure out of thin air.

look at your house oBjectively from a Buyer’s point of viewSelling a house can be an emotional process. You may still love your home but don’t be tempted into viewing it through rose tinted glasses. Instead, put yourself in the buyer’s shoes and be aware of anything which a buyer might view in a negative light.

“happily, i’m here to offer impartial advice, suggestions and tips”

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get an idea for how much demand there is for your type of propertyRightmove.co.uk has a very useful tool for estate agents, called the ‘demand report’. This report enables them to see how many property searches have been carried out on the site for a particular area, property and price within a specified time frame.

This information gives sellers an indication of how many potential buyers will see the property, when it is launched on the market at a certain price. I have seen 10% differences in price result in a 25% difference in demand. This all matters when deciding which marketing price to adopt.

If you would like me to carry out a FREE demand report on your property, simply contact me.

https://www.rightmove.co.uk

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make sure you know what Zoopla.co.uk says your property is worthZoopla.co.uk is a huge source of information for property sellers and buyers. The website estimates the current value of many individual properties in the UK, based purely on their last sale date and any market changes since that time. Often, buyers will look at this information and use it to negotiate on price, so it is important you are aware of it.

Unfortunately, the site is of course unable to tell if you have extended or improved the property since you bought it, so its estimated value of your home may be wrong. If you have made drastic improvements, it is important that you make this clear at the beginning of the marketing literature, so buyers understand quickly why you are asking for more than the Zoopla estimate.

http://www.zoopla.co.uk/home-values/

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look at similar properties currently for sale in your local areaAlthough it is important not to get too hung up on the marketing prices of other properties in the local area, it is important to look and see which properties you would be competing against, should you place your property on the market today.

If your house were the only one on the market, there wouldn’t be any problem. If there are four houses very similar to yours up for sale however, clearly you are going to have to do something to attract the buyers to your house so assessing the competition would be useful.

and finally...Did you know: On average, 60% of property owners end up having to change estate agents before eventually selling their property with the average property selling for 21% below the original asking price.

I have helped hundreds of home owners successfully navigate the challenges of selling. With over 11 years experience in the industry, I am now using that experience to help you avoid the common pitfalls via eGuides, my website forum, Podcasts and Webinars. It’s all FREE!

need more help?No problem, get in touch and I would be happy to help.

Speak soon


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