What happens during a property valuation, and how does an estate agent value a property?
In simple terms, property valuation is the process of determining the value of a property at the moment of valuation. A property valuation is crucial for both buyers and sellers, and it works in both directions. For example, if you want to sell a house, a valuation will help you find out how much is your house worth and will assist you to figure out what a reasonable asking price is before you put it on the market. Similarly, if you want to get into the buy-to-let market, having a property appraisal from a reputable real estate firm may help you figure out what the market-related rent would be, and thus what kind of yield you can expect.
The valuation also provides you with an estimate of the amount of money you’ll need to buy a new property. Suppose you’re looking at properties for sale. In that case, a valuation helps ensure that the price being requested for the new home you want to buy is reasonable, and most lenders will require a valuation before approving a loan and deciding on the final amount.
A property’s value is influenced by a number of characteristics, including its size, location, and condition. That is why having the appraisal done by an experienced estate agent or an independent appraiser is crucial. Several distinct valuations are frequently recommended in order to arrive at the most accurate market value for the property.
Above all, you’ll want to reduce the stress and paperwork that comes with selling or buying a home, so it’s a good idea to contact a property expert to walk you through and handle all of the processes, from the property valuation to the sale of your home and finally the purchase of your new home. Let’s start by answering a few basic questions concerning the appraisal process that you could have.
How is a property valuation carried out?
First things to consider
A good agent starts their valuation even before they visit your home. Your estate agent will spend time learning about your neighbourhood and the surrounding area, so they assess your house based on the neighbourhood. The appraiser will investigate the price and sale time of similar and recently sold properties in your region to learn more about your home and its estimated value. The agent will then collect information about nearby schools and attractions. All of the useful items that you use on a daily basis can have an impact on the price of your home. Is there a bus stop just up the street? Great, the transportation connections may increase the value of your home! Is the supermarket a 20-minute drive away? Perhaps that will have an impact as well. The general guideline is that everything that appeals to purchasers will increase the value of your home.
Once the agent visits your home, they will begin the property walkthrough. They’ll take copious notes, take measurements, and search for all the selling factors that make your property unique during the walkthrough. Because each property is unique, no two appraisals will ever be the same. They’ll check for amenities that might appeal to purchasers in addition to room sizes. Your home’s worth could be boosted by anything from an original fireplace to a newly built bathroom suite. They’ll also look for ways to show purchasers that this house is a good fit for them at this point. For example, working individuals may prefer to utilise that extra bedroom as a home office, whilst growing a family may prefer to have a separate playroom.
Tips to increase your home’s worth
Your agent may also be able to offer quick, easy modifications that will increase the appeal of your house to potential buyers that will help you earn the best price when it goes on the market. This could be anything from a fresh coat of paint in your kitchen to pressure-washing your driveway to make it look new. Buyers are influenced by first impressions, and most house sellers will be able to make simple improvements that will increase the buyer’s initial interest.
Some questions that will help agents make an accurate valuation
- When was the last time you had your windows replaced?
- Tell me how old your boiler is.
- Is the house a leasehold property? Who owns it, and how long do they have it?
- What distinguishes your home from others?
- Is it a sole proprietorship or a partnership?
- Is there anything wrong with the house, such as structural or maintenance issues?
When your agent has obtained all of the information they require, they will combine it with their research to determine the value of your home. Keep in mind that your viewpoint is also equally important. If you already have a number in mind, tell your agent about it; they’ll be pleased to talk about it and explain the differences. Everyone’s selling plan is unique and tailored to their own requirements. A good agent will always consider your needs, whatever they are, and will work with you until you are completely satisfied.