How Much Is My House Worth? The Ultimate Guide [Updated Apr, 2024]

The Significance of Accurate House Valuation

Determining the value of your house is a fundamental step whether you’re considering selling, refinancing, or simply assessing your financial health. In the UK, where the property market is as diverse as it is dynamic, understanding the factors that influence a house’s worth is essential for homeowners.

 

A. The Importance of Knowing Your House’s Value

Gaining insight into your house’s value is more than a mere figure on paper; it’s about making informed decisions rooted in the current property landscape. This knowledge can guide you in setting the right asking price, ensuring you don’t undersell or overprice, which can lead to prolonged market presence or missed opportunities.

 

B. Factors Influencing Property Valuation

From location and property condition to market trends and economic indicators, various elements impact the valuation of your home. We’ll explore how these factors come into play and the degree to which they can sway your property’s valuation.

 

C. Preview of What the Guide Will Cover

This guide is your compass to navigate the complexities of house valuation in the UK. We will dissect the valuation process, introduce you to methods trusted by industry professionals, and offer actionable tips to enhance your property’s appeal to prospective buyers or valuers. Join me, Lisa Hayes, as we embark on this enlightening journey to demystify the art and science of property valuation.

 

1. Understanding the Basics of Property Valuation

When you’re considering the potential sale of your property or simply assessing your asset portfolio, understanding property valuation is essential. In the UK, valuations can vary based on several factors, but knowing the fundamentals can empower you as a homeowner.

 

A. Market Value vs. Appraised Value

Market Value: Reflects what buyers are currently willing to pay for properties like yours. It’s influenced by demand, economic conditions, and other market trends.

Appraised Value: This is a more technical assessment, often required by mortgage lenders to understand the worth of the property as collateral against the loan offered.

Valuation Type	Purpose	Typically Used By
Market Value	Sale of property	Homeowners, Estate Agents
Appraised Value	Mortgage lending, insurance, taxation	Lenders, Surveyors

B. The Role of a Property Appraiser

A property appraiser in the UK, typically a RICS-registered chartered surveyor, provides an objective valuation based on meticulous inspection and industry standards.

Key Fact: According to RICS, less than 20% of homeowners obtain a professional valuation before selling their property, potentially affecting their pricing strategy.

C. Quick Overview of Valuation Methods

Comparative Market Analysis (CMA): Involves comparing your property with similar recently sold properties in the area.

Cost Approach: Suitable for unique or new properties, where comparable sales may not be available.

Income Approach: Ideal for investment properties, this method is based on the potential revenue generation.

 

Valuation Method	Best Used For	Consideration
CMA	Residential properties	Local market trends
Cost Approach	New constructions	Replacement costs
Income Approach	Rental properties	Revenue potential

Lisa’s Tips for Property Valuation:

• Get Multiple Opinions: Before settling on a price, consult with more than one professional to get a comprehensive view of your property’s worth.
• Stay Informed: Keep an eye on local market trends and recent property sales in your area for a better understanding of your property’s potential market value.
• Understand the Methods: Familiarize yourself with different valuation methods to better comprehend the valuation reports you receive.

 

Statistics: The Land Registry reports that UK house prices have seen an annual price increase of 10.2%, which underlines the importance of understanding current market values.

 

2. Key Factors That Affect Your Home’s Value

Determining the worth of your home is more complex than just a number on a page; it’s an intricate dance between various influential factors. As an established property consultant in the UK, I’ve navigated these waters time and again, and I’m here to share the nuances that can add or subtract from your property’s valuation.

A. Location, Location, Location: The Impact of Geographical Factors

The old adage ‘location, location, location’ holds unwavering truth in property valuation. A home’s proximity to top-rated schools, transport links, and amenities can significantly buoy its worth.

Factor	Potential Value Increase	Consideration
Schools	Up to 10% (Ofsted report)	Quality & Ofsted rating
Transport	5-10% (RICS)	Accessibility & frequency

Lisa’s Insight: Always assess the potential for future development in the area, as this can be a double-edged sword—promising improved amenities while potentially impacting the current tranquility.

B. Size and Usable Space: How Square Footage and Layout Affect Pricing

The size of your home and how that space is laid out can significantly influence its value. A well-designed layout that maximizes usable space can be just as impactful as the overall square footage.

Key Statistic: According to Nationwide, each additional bedroom can add about 11% to the property’s value.

C. Age and Condition: The Influence of Property Age and Maintenance on Value

The age of your property can be a testament to its character, but it can also reflect the need for potential updates. A well-maintained older home can compete fiercely in the market with newer builds.

Lisa’s Tip: Regular maintenance is key. Address issues promptly to avoid compounding problems that can detract from your property’s value.

D. Upgrades and Renovations: Determining the Worth of Home Improvements

Renovations can make a world of difference, but not all improvements yield a high return on investment. For instance, converting a loft into a bedroom can offer a potential return of up to 50% on the investment.

Improvement	Average Cost	Value Increase
Loft Conversion	£20,000 – £60,000	Up to 15% of home value

E. Market Trends and Economic Indicators: How They Shape Property Value

The broader economic environment, from interest rates to housing demand, can sway property valuations. It’s essential to understand the current economic landscape and property market trends.

Economic Indicator	Impact on Property Value
Interest Rates	High rates may lower values
Employment Rates	Higher employment can increase demand and value

 

Lisa’s Tip: Keep abreast of the latest market analyses and economic forecasts—they can be pivotal in timing your decision to sell or refinance.

In summary, a multitude of factors intersect to determine your home’s value. By understanding and monitoring these variables, you can better position your home in the market, ensuring that when the time comes to sell or leverage your property’s value, you’re making an informed and strategic move.

3. Do-It-Yourself: How to Estimate Your Home’s Value

Embarking on a do-it-yourself valuation of your home can be a rewarding exercise, providing you with a deeper understanding of your property’s standing in the current UK housing market. With my guidance, let’s navigate through the tools and techniques that can empower you as a homeowner to approximate your home’s worth.

A. How to Conduct a Comparative Market Analysis on Your Own

A Comparative Market Analysis (CMA) involves comparing your home to similar properties in your area that have recently sold or are currently on the market. Here’s how to get started:

1. Gather Data on Comparable Sales: Use property websites like Rightmove or Zoopla to find recent sale prices of homes in your vicinity that share similar features to yours.
2. Adjust for Differences: If the comparable homes have features yours doesn’t, or vice versa, make adjustments to their sale prices to estimate what they would have sold for if they were more like your home.
3. Average Your Findings: After adjusting several comparable sales, average these figures to arrive at a rough estimate for your home.

B. Online Valuation Tools and Their Reliability

Online valuation tools offer a quick and easy way to get an estimated value of your home, but it’s crucial to understand their limitations.

Tool	Reliability	Reason
Zoopla Estimate	Moderate	Based on historical data and trends, not current market nuances
Nationwide House Price Calculator	Moderate	Uses broad market trends, may not reflect local desirability

 

Lisa’s Tip: Always cross-reference multiple valuation tools to get a more comprehensive picture of your home’s potential value.

C. Tips for an Effective Walk-Through Evaluation of Your Property

1. Be Objective: Try to view your property through the eyes of a potential buyer, focusing on both its strengths and imperfections.
2. Take Note of Key Features: Document the condition of your home’s key features like the roof, windows, and boiler—these can heavily influence a home’s valuation.
3. Consider Curb Appeal: The exterior of your home is the first impression potential buyers will have, so assess its impact.
4. Understand the Layout’s Appeal: A good flow and smart use of space can add to a home’s desirability and value.
5. Account for Any Recent Upgrades: If you’ve made significant improvements, ensure they are reflected in your evaluation.
6. Check for Structural Issues: Any signs of structural problems should be addressed as they can drastically affect a property’s value.

 

By combining these do-it-yourself methods, you can gain a well-rounded view of your home’s worth. This self-conducted valuation can serve as a preliminary step before engaging with professionals, allowing you to enter the market with confidence and realistic expectations. Remember, while DIY methods provide a snapshot, a professional valuation will always offer the most accurate reflection of your home’s true value on the market.

4. Professional Valuation Services

As we delve into professional valuation services, remember that while DIY methods are a good start, they can’t replace the precision of a seasoned expert. Professional valuations provide the accuracy and credibility needed when making significant decisions such as selling your home, refinancing, or securing a loan against your property.

 

A. Hiring a Certified Appraiser: Process and Benefits

Process:

1. Selection: Choose a certified appraiser with a strong track record in your local UK housing market.
2. Instruction: Engage their services, ensuring they’re informed about any unique aspects of your property.
3. Evaluation: The appraiser will conduct a thorough inspection, analyzing market data, property specifics, and other relevant factors.

Benefits:

• Accuracy: Gain a detailed and accurate estimate of your home’s worth.
• Credibility: A certified appraisal holds weight in financial and legal situations.
• Negotiation Power: Armed with an official valuation, you can negotiate sales or loans with authority.

Lisa’s Tip: Always verify the appraiser’s credentials and ensure they’re registered with a recognized UK body such as the Royal Institution of Chartered Surveyors (RICS).

B. Working with Estate Agents: Comparative Market Analysis Services

Estate agents offer Comparative Market Analysis (CMA) as part of their service when you’re considering listing your property for sale. They use their knowledge of the local market to provide a valuation that reflects current buyer trends.

What to Expect:

• Market Insight: Agents draw on sales data and their own experiences.
• Marketing Advice: Alongside valuation, they can offer advice on selling strategies.
• Sales Support: Should you choose to sell, they can guide you through the process.

Lisa’s Insight: Select an agent with a proven record in your area to ensure a CMA that’s both insightful and reflective of the local market.

C. Understanding the Valuation Report: What to Look For and How to Read It

When you receive a valuation report, it’s important to understand its components.

Section	Details	Importance
Executive Summary	The appraiser’s conclusion on property value	A quick overview of the property’s worth
Approach to Value	Which valuation methods were used (market, cost, income)	Explains the rationale behind the valuation
Comparable Sales	Details of similar properties and their sale prices	Provides context for how your valuation was reached
Property Analysis	The appraiser’s notes on the condition and features of your property	Specific factors that influenced the valuation
Market Trends	Data on local market conditions	Shows how the broader market impacts your home’s value

 

Lisa’s Tips for Reading Your Valuation Report:

• Look for Consistency: Ensure that the comparables used are truly similar to your property.
• Understand Adjustments: If the appraiser has made adjustments to comparables, they should be logical and well-explained.
• Assess the Market Analysis: Check if the report reflects the current state of the local housing market and recent trends.

In essence, professional valuation services offer a level of detail and authority that cannot be matched by self-evaluation. Whether you opt for an independent appraiser or a property agent’s CMA, understanding the valuation report is key to using it effectively for your property’s sale, purchase, or for financial planning.

5. When to Get a Professional Valuation

Understanding when to invest in a professional valuation can save you time, money, and provide clarity in various financial situations. As a property consultant, I’ve advised numerous UK homeowners on the strategic timing and benefits of professional valuations.

A. Selling Your Home: Timing for Market Analysis

Timing:

1. Pre-listing: Before you list your home on the market, a valuation can set a realistic price, attracting the right buyers.
2. Offer Consideration: When you receive an offer, a recent valuation helps you decide if it’s competitive.
3. Market Fluctuations: If your home has been on the market for a while, a new valuation can adjust to current market conditions.

Lisa’s Tip: Schedule a valuation when the market is on an upswing to capitalize on higher potential prices.

 

B. Refinancing Your Mortgage: Why an Appraisal is Necessary

Necessity:

• Loan-to-Value Ratio: Lenders use property value to determine the loan amount they will offer for refinancing.
• Interest Rates: A higher valuation can secure lower interest rates, reducing your monthly repayments.

Lisa’s Insight: Aim for a valuation when property prices in your area are rising to improve refinancing terms.

C. Property Taxes and Insurance: The Need for Accurate Valuations

Accuracy:

• Tax Assessments: Council tax bands may be influenced by property value, so an accurate valuation ensures you’re not overpaying.
• Insurance Coverage: To avoid being underinsured, the valuation ensures your coverage matches the rebuild cost of your home.

Lisa’s Advice: Regular valuations can keep tax and insurance payments aligned with true property value.

D. Estate Planning and Divorce Proceedings: The Role of Property Value

Role:

• Estate Settlement: For wills and inheritance, a valuation establishes the property’s worth for equitable distribution.
• Divorce Assets: During divorce, property value is key in dividing assets fairly between parties.

Lisa’s Tip: In these sensitive situations, a professional valuation provides an impartial and authoritative property value for legal proceedings.

In conclusion, a professional valuation is crucial in many life events beyond just selling your home. It’s about timing the valuation to your advantage and using it to make informed decisions that impact your finances and legal matters. As a UK homeowner, consider the context of your situation and seek a professional valuation when it can serve you best.

6. Common Misconceptions About Property Valuation

As an expert in the UK property market, I often encounter various myths surrounding property valuation. It’s essential to address these misconceptions to provide homeowners with a clearer understanding of their property’s value.

A. Debunking Myths About Home Value Increases

Myths vs. Reality

Myth	Reality	Lisa’s Insight
All Renovations Increase Value	Only specific upgrades add significant value	Focus on renovations with high ROI, like kitchen and bathroom remodels.
Property Value Always Increases	Market conditions and local factors can lead to fluctuations	Stay informed about current market trends and economic factors impacting property values.

Key Statistic: According to UK market analysis, kitchen renovations can yield up to 60% ROI, while luxury upgrades like swimming pools often have a lower return.

B. The Misunderstood Influence of Neighbourhood Sales

Fact Check:

• Comparable sales in your neighbourhood are a starting point, not the sole determinants of your home’s value.
• Your home’s condition, upgrades, and specific features play a crucial role in its valuation.

Lisa’s Tip: Use neighbourhood sales data as a benchmark, but consult with a professional to assess your home’s unique value proposition.

C. Overestimating the Value of High-End Upgrades

Expectation vs. Reality:

• Luxury upgrades, while appealing, may not always align with buyer priorities or the average standards of your locality.
• A balanced approach to upgrades is key for a worthwhile investment.

Lisa’s Advice: Consider potential buyers’ preferences and the common standards in your area before investing in high-end upgrades.

Key Statistic: Research indicates that over 50% of homebuyers in the UK do not prioritize luxury features as a deciding factor in their purchase.

In summary, understanding the true impact of various factors on property valuation is crucial. As a homeowner, it’s important to navigate these misconceptions with knowledge and insight. Always remember, the value of your property is unique, and it’s beneficial to consult with professionals to get an accurate assessment.

7. Preparing for a Valuation: Tips to Ensure the Best Outcome

As a property expert, I, Lisa Hayes, understand the importance of preparation for a valuation. A well-prepared property not only presents better but can significantly impact the final valuation. Here are essential tips to help ensure the best possible outcome.

 

A. Home Presentation: Preparing Your House for an Appraisal

The First Impression Counts:

• Cleanliness: Ensure your property is clean and clutter-free. A tidy house can make a substantial difference.
• Staging: Consider staging your home to highlight its best features. This doesn’t necessarily mean a complete overhaul – sometimes, simple rearrangements can do wonders.
• Garden and Exterior: Don’t forget the exterior. A well-maintained garden and a fresh coat of paint on the fence can enhance curb appeal.

Lisa’s Tip: Focus on creating an inviting atmosphere. This can be achieved by maximizing natural light, ensuring rooms are well-lit, and adding a few decorative touches like fresh flowers.

 

Pre-Valuation Checklist

Area	Action	Impact
Interior	Declutter and clean	Improves perceived space and cleanliness
Exterior	Garden tidy-up, minor repairs	Enhances first impressions
Ambiance	Proper lighting, fresh air	Creates a welcoming environment

B. Documentation: What to Have Ready for an Appraiser or Agent

Essential Documents:

• Proof of Ownership: Have your deeds or proof of ownership documents at hand.
• Building Regulations and Planning Permissions: Any documentation related to extensions, conversions, or major renovations should be available.
• Energy Performance Certificate (EPC): An up-to-date EPC is often required.

Lisa’s Advice: Organize your documents in a folder for easy access. This not only helps the valuation process but also demonstrates your diligence as a homeowner.

C. Addressing Repairs: Small Fixes That Can Affect Valuation

 

Impactful Minor Repairs:

• Cosmetic Fixes: Simple tasks like patching up holes, repainting chipped areas, and fixing leaky taps can make a big difference.
• Electrical and Plumbing: Ensure all electrical sockets, switches, and plumbing are in good working order.
• Safety Features: Check that smoke detectors and other safety features are functional.

Lisa’s Insight: Addressing these small issues can significantly influence the appraiser’s perception of your home’s condition and maintenance.

 

Impact of Repairs on Valuation

Repair Type	Potential Increase in Valuation
Cosmetic Fixes	Up to 5% increase
Functional Repairs (Electrical, Plumbing)	3-10% increase, depending on the issue
Safety Features Update	Can impact valuation positively, especially in family homes

 

In summary, preparing your home for valuation is a crucial step that shouldn’t be overlooked. By presenting your property in the best possible light, organizing necessary documents, and addressing essential repairs, you can significantly influence the outcome of the valuation. Remember, small efforts can lead to significant gains in your property’s value.

Frequently Asked Questions & Answers

Why is it So Important to Get an Accurate Valuation?

• Simply put, overpricing your property will undoubtedly lead to underselling. The problem with underselling, is that the longer a property has been on the market, the less likely people are to buy it. In fact, one of the first questions that a prospective buyer is likely to ask, is “how long has the property been on the market?”. This is because they’ll either think there is something wrong with the property and that’s why it isn’t selling, or it’s been put up at an unfair price. On the other side of the coin, if you under-price your property, although it’s great for potential buyers to get a bargain, it’s not going to help you with any financial gain.
• The first mistake people make is setting the price above market value, hoping that it attracts a high offer. Unfortunately, as mentioned this often ends up resulting in nobody making an offer, so you’re sat waiting.
• While you’re sitting idly by waiting for someone to make the offer, chances are that potential buyers are seeing similar houses for a lesser price. In fact, rather than helping yourself to sell your home, you’re helping your competitors to sell theirs – and that’s the last thing you want!
• Inevitably, you then have to reduce the price. When no one bites, you reduce it again. Eventually you end up putting the property up at the correct market value, and although you might expect a prospective buyer to be more interested in making a purchase then, chances are they still might not.
• The reason behind this, is because your home might now be considered as a “stale property”. It’s become so overexposed with it being on the market for so long, that now people are starting to wonder WHY the property isn’t selling, and whether there’s actually something wrong with it. It’s a shame, because even if this isn’t the case people will begin to assume that it is.
• Now your property has some negative stigma attached to it, chances are if you want someone to put in an offer, you’ll have to list the property below market value. It might seem crazy, but those properties that are initially listed as above the market value will actually end up selling for less than their original prices. In this case, the sellers can end up losing thousands and thousands of pounds.

So the moral of that story is – always make sure you get an accurate property valuation and market it at this price.

 

Can I Just Use an Online House Price Calculator – or What About that Zoopla Valuation Estimate Tool?

Now let’s take a look at the DIY methods of house valuations, what’s good about them, and what is maybe not so good:

• In the trade, these tools are known as AVMs, which literally just means a free online house valuation tool.
• These tools make it seem possible that you can easily go online for free to determine the accurate value of a property, whether you’re in the trade and have experience or not. In fact, you don’t even have to speak to an estate agent to do this.
• The most frequently used one of these is without a doubt, Zoopla.
• Because they’re a well known company, the figures on Zoopla are often held in high regard by internet users. The figures are actually more often than not a lot higher than expected, which in a seller’s eyes is an ideal situation. However this does not make it accurate, and it also doesn’t look great in the eyes of a buyer.

Accuracy wise, if you were to ask someone in the business whether or not Zoopla was reliable, they’d likely give you a firm no. In fact, here is an example:

On 14^th November 2017, Zoopla estimated a particular property at £1,049,000. The property in question had in fact been failing to sell since January the previous year, and was valued at £740,000.

That’s quite the drop in price. In fact, when researching the same case and others similar further, it was immediately shown that Zoopla and comparable companies were more than likely to overcharge for a property. Here are some conclusions that were drawn:

• If you were to base your asking price on what many of these free online tools say, you’d end up asking for more than the market value – and we’ve seen what tends to happen when this is done. Your property is likely to sit on the market, go stale, you reduce to under the market value, and lose money in the long run.
• To reiterate, it’s likely that the property in question would end up sitting on the market way longer than necessary, and you’d end up having to drop the price in the long run, ultimately losing money.
• Basically, it’s not advisable to make big scale decisions entirely reliant upon what a free online tool says – whether they’re a well-known company, or not. A free valuation tool is not an accurate representation of what real life buyers would be likely to pay for your home, however appealing those big numbers might look.
• Remember when you’re selling your home, that in reality there’s nothing more important than what buyers are willing to pay for a property.

 

How DO I Find Out How Much My Home Would be Worth Today, Then?

Okay, so that might seem like a huge overload of information about how not to find out what your property is worth. Therefore, we should now probably look at what really determines the true value of your property:

• Regardless of what you’ve been told in the past, let’s reiterate: there is nothing that determines the value of a property more accurately or important, than how much a buyer would be willing to pay for it. Your home will never be worth more or less than someone is able to pay for it, and it’s crucial you remember that.
• Buyers will come to a conclusion about the value of your property in their eyes, by comparing it to those of a similar size and stature that are for sale on the market right now. Your home is only as valuable as your competition appears to be.
• Thinking about it literally, only houses for sale can then be sold. These properties are your ultimate competition. The market changes all the time, so there’s not a lot of point in comparing your property to those that have already been sold.

Try and Remember: What Did You Look for When You Were a Buyer?

Think about it logically – what did you look for and what were your requirements when you were last out there as a buyer looking at properties?

• Without a doubt, you would have had a budget. We all wish we didn’t have to think about money, but the vast majority of us have to.
• You’d probably have had an idea of the kind of property you needed for your lifestyle. For example, if you have a family you may have been looking for a semi-detached, three bedroomed house in the suburbs. As a young singleton, a one bedroomed flat in the centre of town may have been more your style.
• You might have even known where you wanted to live – whether that be defined by where your career is, or where your family live.
• Because of this, you’re likely to have viewed an assortment of properties in your price range that met your particular needs within the vicinity of the area that you were looking to live in.
• You’ll have, either on purpose or not, compared all of the properties you viewed against each other. In the end you’re likely to have gone for the property that both met your needs the most, and was the highest value for money.

If this was the case – which hopefully it was – then you actually understand buyers on the market a lot better than you think you do, and that’s because you were once one of them. This being said, here are the key things you should remember:

• Property buying, is pretty much an exercise in comparison price shopping.
• Property, fundamentally, is not valued by what an estate agent thinks it’s worth, what you’d ideally like for it, or what it would cost to rebuild it. It’s instead valued by how buyers compare it to other properties on the market at the given time – and the market changes all of the time.
• Buyers visualise the value of one property in comparison to another that’s available to buy at that moment. The features of each home compared with the price that’s being asked are often sized up against each other.
• One thing buyers don’t care about, is how much a seller things their home is worth. Realistically, all sellers would like to get as much as they can for their homes, so their biased opinions are often unrealistic.
• Properties change in value, dependant on the judgement of each buyer too. Remember, each person will be attracted to and like different things, so a lot of it is subjective too.
• The bottom line is that your property’s value is not always depicted by the professionals, but rather what buyers think it should be worth. Often people will complain about the price of property directly in relation to estate agents, but a lot of the time it’s not actually their fault.

So If Asking the Market Value is the Best Way Forward, How Do I Know What that is?

So we’ve established that asking the market value of a property is the best way forwards. But how do we always know what the market value actually is?

• Unfortunately, market value is not remotely static. Once you understand that the competition surrounding the property that you’re selling determines its value, you’ll come to realise this.
• The market itself is in a constant state of fluidity. Every single time that a competing property is put on the market or is bought, the market changes.
• If you’re selling, and want to do so wisely, then you should ensure that you’re staying up to date with the state of the market throughout the selling process. Likewise, you should be flexible in going with the fluidity of the market itself, and be willing to change the strategy of your pricing in order to keep up with your competitors.
• However, it’s important to remember that housing prices aren’t fixed like when you go to the supermarket. Housing prices can be negotiated – like at a car boot sale! This can actually work to your advantage, in that because prices aren’t fixed, a good estate agent can talk a buyer into paying more.
• These selling techniques include effective negotiation, as well as generating a sort of buzz of excitement surrounding the property itself – and furthermore a fear of missing out on it.
• A great way of doing this, is by ensuring that you get as many serious potential buyers through the doors and viewing the property as possible. Producing a feeling of healthy competition between buyers will encourage them to not only put in an offer more quickly, but to put in a higher offer in order to cut down the competition.

As Long as I go through an Estate Agent, Am I Guaranteed a Good Price?

It is important to remember however, that not all estate agents are the same:

• Yes, it’s true that estate agents tend to do all of the same things, like building buyer relationships, negotiating and marketing. But some estate agents do these things a lot better than others – so it’s worth taking the time to find a good one.
• Statistics and experienced people in the business show that there can be a 10% margin either way when it comes to where your price is going to end up.
• How far above or below the price can go depends upon several features. These are your choice of estate agent, the skills of the said estate agent and the suitability of an estate agent for selling the property in question. Remember different estate agents will have different specialities, and more experience with certain types of properties than others.
• Yes, remember that your house is only worth as much as a buyer is willing to pay…but what the buyer is willing to pay is not fixed. This means the right estate agent could encourage and persuade a buyer to pay more – so get yourself a good one, and use the fluidity of the market to your advantage.

So if These Things DO Affect the Value of My Home, What Doesn’t?

We’ve looked fairly in depth at the main things that do affect the value of a property, and that is what a buyer would be able and willing to pay. These are some of the popular myths that people believe also affect the value of your property, however, they do not:

• What you need.
• What you want to get for the property.
• How much you personally paid for the property in the first place.
• What your neighbours and friends think the house should be valued at.
• Even what estate agents think you SHOULD get for it.
• Any costs of improvements, or potential rebuilds that you’ve spent. If you think about it logically, and you were the one buying a house, would you even give a second thought as to how much the seller had spent making improvements? The answer is most likely no, because you wouldn’t care.
• Realistically, all buyers do care about is how much sellers are asking for similar properties in the area, in comparison to the one they may be interested in.
• If they do look into getting a mortgage, they will care somewhat about what their lender’s surveyor decides the property is worth.
• A lot of people will even check against the Zoopla valuation of the property to see how much it is, and if it’s low they could use it against you in order to get a lower offer. It’s all about playing the game.

Okay so we’ve talked a lot about the value of properties and what they might cost – but are these two actually the same thing or not? The answer is NO. Lets take a look at some of the commonly mistaken terms mentioned in the property market:

Cost

• Cost is the amount you would have paid for the property.
• This would also include any capital improvements you may have made in the time that you’ve owned that particular property.

Price

• Price is the amount of money you would actually ask for when selling a property.
• Unfortunately for the seller however, you might not actually get your asking price.
• If you put forward the correct asking price, it can actually act as a bait and encourage buyers to put an offer down on the property in question.

Value

• In its most simple sense, value is what your property would be worth to one individual person.
• Whoever this person is, however, knows that they only have to pay the market value, which as previously mentioned is fluid. This means although they could value your property highly, if it’s lower on the market, that’s therefore all they’ll have to pay.

Market Value

• The difference here, is that market value is an amount that would appeal to many buyers and therefore help you to sell the property in a reasonable amount of time – which means it could be less than you’d personally value your own house.
• There isn’t actually a relationship between cost and market value, because of the fluidity of the market value itself.
• Unfortunately, no matter how much you paid for or later put into improving your home, it’s worth whatever the market value deems it to be worth.
• Therefore it could easily be said that value is not determined by what you put into a home, but what you can get out of it.

So if I Improve my Home will it Help it to Sell, or am I Just Wasting my Time?

With all of that in mind, it would make sense to take a look at what the value of home improvement actually is:

• So yes, a lot of people say that making improvements will “add value to your home”. However it’s questionable whether, in fact it just adds value from your perception because it adds to your own enjoyment of your home.
• This means that to the buyers on the marker at present, it may not even add value at all. Of course, it’s all very subjective.
• A lot of the time when people make home improvements, their sole intention isn’t to help sell the property in a shorter time frame. Mostly, it’s something they want done so that they can enjoy it whilst they’re living there.
• In fact, if you ask a lot of people who’ve made home improvements previously whether or not they’d have still made them if they’d known they’d be moving on soon, the answer would likely be no. People like to know they’ll get the money they spent back, and if that can’t be guaranteed (which it can’t in this scenario) then they’ll be reluctant to part with it.
• Think about it like this: if you reversed the improvement and a buyer was interested in your home, do you really think they’d go out of their way to make the improvement themselves and spend the amount you did on it? It’s highly doubtful that the answer would be yes.

Will the Condition of My Property Affect its Overall Value?

With all of that in mind, it would make sense to take a look at what the value of home improvement actually is:

• So yes, a lot of people say that making improvements will “add value to your home”. However it’s questionable whether, in fact it just adds value from your perception because it adds to your own enjoyment of your home.
• This means that to the buyers on the marker at present, it may not even add value at all. Of course, it’s all very subjective.
• A lot of the time when people make home improvements, their sole intention isn’t to help sell the property in a shorter time frame. Mostly, it’s something they want done so that they can enjoy it whilst they’re living there.
• In fact, if you ask a lot of people who’ve made home improvements previously whether or not they’d have still made them if they’d known they’d be moving on soon, the answer would likely be no. People like to know they’ll get the money they spent back, and if that can’t be guaranteed (which it can’t in this scenario) then they’ll be reluctant to part with it.
• Think about it like this: if you reversed the improvement and a buyer was interested in your home, do you really think they’d go out of their way to make the improvement themselves and spend the amount you did on it? It’s highly doubtful that the answer would be yes.

What About Repairs?

There is a difference between repairs and general condition:

• Repairs might protect the investment you’ve made and stop you losing money, but they’re still not going to up the value of your investment.
• However, buyers do look for reasons (unfortunately) that could put them off the property they’re viewing. A few of these include the condition of the roof, the integrity of the structure of the building, plumbing and electrical systems, and any water damage that may have previously occurred.
• Regrettably even if the property you’re selling only has one of these faults, then it’s likely to make the buyer wary and have them looking for more.
• The best way of eliminating a sale falling through because of this, is by assessing each individual thing in your home, and deciding a course of action to take on any repairs that may need to take place. You should either make sure that they’re repaired professionally, or you can give an estimate for how much the repair may end up costing.
• When buyers do estimate time, materials and the cost of a repair, they tend to be slightly pessimistic and end up overestimating all of these things – by as much as two or four times.
• The way that buyers will reflect this, will be by making an extremely low offer on the property itself. You can eliminate this by making sure you provide them with the correct estimate, and putting their minds at rest.
• If you think about it logically, it makes sense that buyers will quite literally be looking for reasons that you could reduce the property for them – after all everyone wants a bargain. It just makes sense for you financially to nip these excuses in the bud upfront and early on in the process.

Are There Any Other Factors that will Affect the Value of my Home?

There are in fact a few other factors you should consider, as they will affect the value of your home:

• If you’re a homeowner, you’ll know yourself how attached you are to your home – and how much value you’d be likely to put on things that aren’t all that valuable. Well, nobody is different, and often people overestimate by quite a margin how much their property should be worth.
• This can include things such as the condition of the home and the way it’s decorated.
• However, the major factors that actually do determine how much a property may be valued could be condition, size, location and facilities.
• Location and size are accountable for the majority of deciding how much a property will be worth, followed by condition and facilities which contribute to value far less than the first two. Yet, these do make an impact on how sellable the house is, and how quickly it might be taken off the market, so they’re still not to be ignored.

All of that Considered, is there a Way I can Research the Open Market Value Successfully?

All of the above information is a fair bit – or even a LOT to take in. But being successful in researching the open market value before selling is a pretty safe place to start:

• The most important thing to remember, is to see the market through the eyes of the buyer. Doing this is the most successful way of getting an accurate valuation.
• Facts are the best thing to rely upon, because they are the things that will give you the most accurate insight into what buyers are thinking, and also seeing. Facts include things such as what similar homes are historically sold for, what similar homes have recently been sold for, what similar homes you may be competing against and what similar homes are going to sell for.
• If you’re in a market where prices are rising, buyers will likely be willing to pay above what similar homes may recently have sold for, but below what similar homes may be failing to sell for.
• If you’re in a situation where prices are falling, buyers will be willing to pay is likely to be below what similar homes have recently sold for, but above what they may have historically sold for.
• Most of these facts can be found easily on either Zoopla or Rightmove, but some of these critical facts are unfortunately not on the public record, and only certain estate agents are likely to have them.

How Can I Find Out What Similar Homes were Historically Sold for?

If you want to find out how much similar homes were sold for historically, then here’s how:

• Data collected by HM Land Registry will include the actual price which someone will have paid for a residential property that’s been sold in England and Wales since the year 2000.
• There are several websites out there where you can access this information for free. Both Zoopla and Rightmove are likely to have access to this information.

How Can I Find Out what Similar Homes have Recently Sold For?

If you want to find out how much similar homes have sold for more recently, then here’s how:

• Searching on sites such as Zoopla and Rightmove will give you a close indication of how much similar homes may have recently sold for.
• Although you will be able to see the latest advertised asking price, unfortunately you won’t be able to see the agreed price the property actually sold for.
• Only the estate agent who negotiated the price will know much the property actually sold for.
• Despite all of the available information on the internet, it’s still clear to see that local estate agents have the monopoly on accurate valuation advice.
• All estate agents will have different levels of direct contact with the buyers who are interested in the particular price bracket in question.
• Of course, it goes without saying that agents who have the most direct contact with potential buyers are likely to have the most relevant and up to date information regarding the property.
• Look at what an agent is currently selling, or has recently sold. This will give you an indication with how knowledgeable they are regarding the current facts in the market which determine how interested buyers might be in your property.

How Can I Find the Properties that I’ll be Competing Against?

Of course, you’ll want to size up the competition yourself too, and here’s how:

• You can search on both Rightmove and Zoopla in the “for sale” section.
• Look at houses that are close in location and similar to yours – so similar size and number of bedrooms etc.
• These will be the houses that you’re in direct competition with if your own home is on the market.
• However do remember this – asking prices are NOT getting prices. As previously stipulated, no one is guaranteed to get the asking price for their home – it’s all dependant on the buyers that are looking and the state of the market.

Can I Find Out What Similar Homes Aren’t Selling For?

In a lot of ways, it would actually make sense looking at what similar homes are not selling for:

• You can, again use Rightmove and Zoopla. Similarly to before, look at the cost of houses that are currently your market competition, but then pay close attention to when those properties were actually added onto the market.
• In a market that’s not doing so well, anything that’s on the market as long as 90-120 days and has gone unsold is likely overpriced.

Furthermore, when the market is booming, anything that’s on longer than 40-60 days is likely overpriced.

What’s the Best Way to Compare my Property with Those I’m Competing Against?

Now, let’s take a look at what is the best method of comparing your property against its competition:

• Again, get yourself on Rightmove or Zoopla! Then, have a look at all of the properties you’d have been interested in if you went back to when you were buying your property.
• There is an industry phrase for this – it’s searching for “comps”.
• Print out the details of these properties, and study them closely. Keep a hold of them too – they’ll come in handy.
• All of these “comps” should really fall into a neat and tidy price range together.
• There is likely to be a couple of properties however that look like competition, but are priced a lot higher or lower than the rest. Remember that this is never without reason. It’s usually because the seller is either asking too much money, or that there’s a problem with the property itself.
• These houses should be put to one side – they give you a false sense of how much your property is actually worth. If you feel unsure at all, just ask the estate agents when they come to view the property at a later date.

What if Someone Has Paid More for a Property that Looks Similar to Mine?

If you’ve either seen or heard of someone buying a property that seems similar to yours for a lot more than you’ve put it on the market for, there might be a reason for that:

• It might be in a better location. This could mean it’s closer to the shops, or in a school catchment area, even if it seems close.
• Off street parking and garages are another reason people will pay more for a property.
• They may have an en-suite bathroom, or double bedrooms.
• Perhaps they have an outdoor area or garden – or maybe even a more spacious one.
• Maybe they have a conservatory that blends well with the building that’s already there.
• It could have larger square footage.
• Their kitchens or bathrooms may have been newly fitted recently.
• The kitchen might be large enough to eat in, or have features like a breakfast bar.
• Maybe it’s newly decorated throughout, and extremely well maintained.
• Period features are another reason why someone might have paid more.
• Double glazing that compliments the style of the house is another reason.
• They could have a built in alarm system.
• The property might be freehold – or at least a share of freehold, and has a long time left on the lease, such as sixty years for example.
• They might have superior views – people pay for views.
• Of course, you don’t need to know how much value these things might add – it tends to be subjective anyway.
• Be critical and realistic – and try not to look at your own property through rose tinted spectacles. Try and see from a buyers perspective why the other properties may be more appealing, and why they’d be willing to pay more.
• At the end of the day – property valuation is pretty much just glorified guessing!
• Remember that as long as you’ve taken the time to look at information resources that are reliable, then you should trust your own opinion. Provided you’ve done your research, you’ll have a great base of knowledge which will only be helped further by the accompaniment of a good estate agent.

Are There Any Other Research Tools I Can Use?

If you’re wanting to do your research thoroughly – then good on you! Here are a few of the best research tools you can use aside from Zoopla and Rightmove:

• PropCast is the UK’s first house selling forecast website. It will tell you how hot or cold (or flourishing/stale) the market you’re currently looking at is. This is a good way of being able to tell whether the market is simply slow, or whether a property is actually overpriced.
• PropertyBee is another useful tool. It is an easily installed browser plug-in that acts as an interrogator for Rightmove properties. It will give you the complete history of when a property was actually put on the market, whether the price of the property has gone up or down since it’s been placed on the market, and whether there has been any changes made to the details of the property since it’s been put on the market.
• PropertyDetective will provide you with facts about any property throughout England and Wales. This can include information on things such as noise pollution, schools, crime, any amenities, flight paths and more.

All of these act as great additional tools alongside your search on Zoopla or Rightmove – it just helps you to get down to the finer details.

Are the Historic Sold Prices on HM Land Registry Data Fully Accurate?

Let’s have a look at how useful the historic sold prices on HM Land Registry Data really are:

• Just to reiterate, this is the place where the selling prices of UK property transactions are recorded.
• There is access to their database, meaning the data can be put just about anywhere.
• Yes, it is credible, and it’s there set in stone – so this is what the average member of the public would believe. However, so be one step ahead of the game, it’s important that you’re anything but average!
• Remember that house prices are what buyers are going to be willing to pay in the current market – not what they’re recorded as on here! The market is fluid, remember that.
• That being said, buyers can’t buy what is already sold. The market that is represented in this data, is a market that no longer exists. Just because a house sold for a high price three years ago, doesn’t guarantee it would go for the same price today!
• Think about it – you don’t know the circumstances behind the sale! This person could have overpriced their home in the first place, meaning it was sat on the market going stale, and therefore they had to decrease their price and accept an offer below market value.
• The market could even have fallen! Or it could even have been the case the market was flooded with properties at a better price.
• You could “what if” until the cows came home and every property on the market was sold, and nothing would change.
• That being said, the HM Land Registry can only really be seen as a rough guideline, and not an accurate sum.
• The biggest problem with the registry itself, is the fact that it’s old. When a transaction reaches completion legally and HM Land Registry have the data, it can take as long as three months to make its way into the public domain.
• The price itself is actually usually agreed between the buyer and seller three months before it’s recorded, and people often forget this. If you think about it in terms of literal time, a sale made on February 1^st wouldn’t be available on the public domain until May 1^st. On top of that, the price was probably agreed even earlier than this. The market is constantly fluid, so it’ll have already changed by the time this information reaches the public domain.
• It’s fine to have a look at a historic price of a similar property, and then guess today’s market value by multiplying the amount by the rate of house price inflation.
• Remember that if you are selling, pricing against your current competition accordingly is the best way to stay ahead in the market.

Can You Use the Square Feet of a Property to Determine its Value?

It’s an interesting concept to use the square feet of a property in order to figure out its overall value. Let’s see whether it works or not:

• It’s actually an incredibly flawed method. This is because homebuyers tend to evaluate property by the number of bedrooms it has available – and not by the measurement of its square footage. This means the majority buyers would value a three bedroomed property more than a two bedroomed property, and so on.
• However, it’s not all a waste of time. If you’re comparing the value of your property compared to those recently sold and still for sale, then looking at the price vs the square foot of the properties in question can help you to build a rough approximation of the value of your home. It can also be a useful way to provide yourself with some context when comparing different places in the country, or areas in a city.
• Don’t make the mistake of thinking this is the be all and end all – there’s more to it than that. Remember that not all square feet are actually created to be equal.
• For example, square footage that is uninhabited is less valuable than square footage that can be inhabited. So for example, a bedroom’s square footage is worth more than that of the square footage on the landing.
• Similarly, square footage with a ceiling height that’s restricted would be worth less than that with unrestricted ceilings. Modernised square footage is also seen as more valuable than square footage that might be in need of updating or renovating.
• It’s not all about the square footage, however. The actual generosity of the room sizes and the way they’re formed will also contribute to the value of the overall property.
• In conclusion, don’t assume that all floor plans are perfectly accurate, because they’re not. They also may not all be measuring the same thing. Some will measure external gross area, some gross internal area, and some net internal area.
• So yes, square foot is a useful valuation tool, but it doesn’t have the final say. In some places like London, estate agents use it extensively to measure the value of a property – but this doesn’t mean it’s the most accurate way of doing it – some people may even think this makes them lazy. Square foot should, therefore, only be used as a guide – NOT an exact science.

 

Is It Fool-Proof to get a Free Valuation from an Estate Agent Then?

Although it’s always advisable to take advice from the professionals, unfortunately getting a free valuation from an estate agent isn’t always without its problems:

• So fair enough, a competent estate agent is likely to be your greatest ally when it comes to figuring out how much potential buyers are likely to be willing to pay for your property.
• However, one of the biggest issues of property not selling is deliberate overvaluation, and overestimating how much people would be willing to pay for your property in today’s market.
• In the UK, in fact, it’s actually estimated that around fifty percent of all homes that go on the market won’t sell, or will indeed fail to sell in the first twelve months.
• A lot of this unfortunately does seem to stem from free valuations from estate agencies. This creates an overall environment that tends to encourage home owners to list their properties at an overpriced figure with a less competent estate agent.
• One of the biggest challenges that estate agents face when working with people wanting to sell their homes, is trying to present the seller’s opinion of value, and trying to balance that with what price is actually going to be achievable.
• A lot of the time, people who are selling will ask two or three estate agents the same question – “how much do you think my house is worth?”. Unfortunately, that’s a far more complex question than most seem to realise.
• After asking this, they’re likely to compare the figure that each estate agent has given them. Then the decision they’re going to make tends to be based on who has given them the highest figure.
• It makes sense really, when you consider that to the average person in society, all estate agents look very much the same, and as if they all do the same things.
• But there are things you should be looking at other than price when it comes to choosing the right estate agent for you. In fact, the most common mistake that people make is ending up using the least competent estate agent, just because they valued their property at the highest figure.
• Think about it. Millions of home sellers before you will have asked estate agents how much they think their home is worth, and chosen the one who has given them the highest and most appealing figure. Now, this means those working in the industry themselves are now extremely aware that giving an honest opinion of value is not the most likely way of getting themselves business. In fact, telling the seller something that’s more flattering and appeals to them more is far more likely to get them the business. Telling the truth doesn’t always get you the job, unfortunately.
• It is a universal problem too. In a recent survey where estate agents working across 2000 different post code areas were asked whether deliberately overpricing properties to win business was a problem amongst one or more of their competitors, 100% of them answered yes.
• It’s not just exclusive to the traditional estate agent either. Make no mistake, that valuation-bidding wars appear to be happening in every single market in the UK, regardless of price bracket or type of estate agency. This includes hybrid, offline, online, independent, corporate, franchise, high street, no sale no fee, fixed fee, upfront fee and deferred fee.
• When you really think about it, estate agents have no power whatsoever over the real value of your home! They can no more accurately determine the market value of a property today than a weatherman can tell you what the weather is going to be like. Yes, it’s an educated guess, but it’s not an exact science. The market is unpredictable, and ever fluid.
• You are at the mercy of the market, and the market alone, when it comes to determining the value of your property.
• And yet, overpricing wins business. It’s a dog eat dog world.

Is There Anything that Can be Done to Stop this Technique Being Used?

It’s not always easy, but there are things you can do to stop this technique being used on you:

• You can commit to being the most savvy home seller on the market. Knowledge is power, so do your research and always remember that facts and figures are more reliable than empty promises and “expert opinions”. In fact, estate agents actually wish that more people were like this.
• If you do your research and commit to being more savvy, you’re actually likely to gain not only the respect of your respective estate agent, but also, they’re likely to be able to give you a better service. After all, that’s what’s going to get you the best possible result from your house sale.
• If you don’t do this, then unfortunately you’re likely to end up right in the middle of the valuation bidding war all over again…
• If you want to get the truth out of your estate agent, what they need more than anything is the go ahead to be as brutally honest with you as possible. This is the only way you’re going to get the truth, the whole truth, and nothing but the truth.
• It’s always handy to have a discussion with them before you jump into asking what they think your property is worth. For example, be sure to let them know you don’t want to be flattered, above everything else you want to be told the truth. It doesn’t mean you have to agree with them, and you should let them know that, but be very blunt in informing them that you will not be basing your choice of estate agent on who offers the highest price. This way you both know where you stand.
• Think about what questions you’re going to ask them in advance, and BEFORE you ask them how much they think that your property is going to be worth. Try something like “what are the properties on the market right now that my likely buyers will be seriously considering investing in?” and “how does my property compare to these other properties?” and “where should my property be situated in relation to the value of these properties to ensure potential buyers see it as being the best value for money?”.
• If you feel as if you’re not getting there with these, you should ask how far below your property should be priced in order to generate offers.
• Again, it’s important to remember that although it’s the industry they work in and know a lot about, estate agents actually have no control over the value of your home, and that’s the bottom line.
• If an estate agent is competent and worth your time and money, they’ll know that they’re not there in order to tell you what they think your property is worth. They should know that their opinion matters little to not at all, and that only the opinions of potential buyers and facts and figures count.
• Their real job, above everything else, is to show you the facts there in front of them in the market right now. This means that together as a team, you can estimate value and come to an agreement on an asking price that’s likely to attract potential buyers.
• If you want to know which estate agents really are truthful and doing their jobs properly, it’s the ones that are selling property for the price close to the asking price.

In Conclusion

Okay, so all of that is a lot to take on board. But let’s try and sum it up a little:

• EVERYONE is going to have an opinion on how much your home is worth. Whether it’s an estate agent, yourself, a neighbour, or even just a passer-by. But remember, that it is what it is – an OPINION.
• You’ll only truly know whose opinion was the most accurate, on the day that the papers are signed and sealed, and you exchange the said contracts with a buyer who is committed to your property.
• Speaking generally, it’s buyers who tend to think the value is lower, and sellers who tend to think the value is higher. You could almost call this, wishful thinking.
• A surveyor should be able to give you a perfectly accurate reading, or slightly below.
• An estate agent who is both honest and experienced, is likely to be at the top end of what is realistically achievable for your property. They will know the price that similar homes and how much they’ve actually ended up being sold for, as well as how much buyers have been willing to negotiate for them.
• Depending on their desperation and lack of integrity, a bad estate agent will be likely to put your property well above the market value.
• If you’re going to pay close attention to the opinions of anyone, it should really be the opinions of the potential buyers, and perhaps their surveyors if they are buying it with a mortgage.
• After that, it’s the job of your estate agent to raise the opinions of the potential buyer as much as they possibly can. This is possible through negotiation and good marketing skills, which are the attributes of any estate agent who is good at their job. With surveyors, they’ll need to produce supporting market data about the competition too.
• Remember – offers from buyers are NOT direct proof of market value. Even if you get an offer at a certain price and you’re happy with it, don’t jump to the conclusion that this is what your property is indeed worth.
• It’s only over when the contracts are signed and exchanged.

What Are the Most Important things to Remember if I’m a Home Seller Wanting to Know How Much My Property is Truly Worth?

We’re now going to list some of the most important things you need to remember if you’re selling property in the near future, and want to know the true value of your home in order to get the best possible price for it:

• Remember that if you’re wanting to research the value of your home and do it well there are four different levels of information that you should be working your way through.
• Start with Zoopla valuation estimates, and see if they need changing at all.
• Then you should be looking at the historic sold prices of properties similar to yours – but remember that some of this information can be outdated.
• Then look at properties you can compare to your own that are on the market right now, and have a look at the prices those you are going to be in direct competition with are asking for. Look a little further too, at what some of these properties are perhaps failing to sell at and may even be going under offer at.
• Identify and communicate with local estate agents. Make sure to speak with the ones who have the most up to date knowledge about the buyers that are trawling the market right now, and are looking for their dream home in your particular price bracket. Also remember to ask them about the price of recent sales, and NOT to rely exclusively on the HM Land Registry records. These are outdated very, very quickly, so it’s best to find this out before it’s even been recorded on there.

What Should I Always Keep in Mind?

Here are some final thoughts on the things you should always be keeping in mind:

• Never make important decisions based solely on figures provided by a free online estimation tool, or a house price calculator.
• Never take an estate agent’s opinion at face value – there is almost always a motive. Remember that opinions are completely irrelevant unless they’re backed up with FACTS and FIGURES. Facts include what similar homes have been sold for historically, what they have been sold for recently, what similar homes are on the market that you’ll ultimately be competing against, and what similar homes may be failing to sell for.
• Always remember that RECENT sales prices are likely to be far more accurate than HISTORIC sales prices when you are assessing what the buyers on the market right now are likely to be willing to pay for your own property.
• Estate agents in your area will all have different levels of contact with the home buyers looking at properties within your price bracket. Those with direct contact are likely to have the most relevant and up to date market experience that they can therefore share with you. You can determine how in touch an estate agent is with the market by what they have recently sold, or are currently selling. This is the best informant of how buyers are likely to react to your home too.
• It’s as simple as this: the property of your value today will be determined by the competition on the market today. The market is fluid, so this is ever changing. Something as simple as a property either being put on or taken off the market, makes it change immediately. A buyer can now select the new property that’s been added to the market, and the one that’s been sold no longer matters. It’s as easy as that.