What Is The Best Way To Value My Property?
When it comes to valuing a property the only true valuation that means anything is a RICS valuation
. RICS carry out valuations on bahalf of mortgage companies and give out the true value of a property. However if you are looking to get a rough estimate for free you can get an idea of what your home is worth by doing a little bit of internet research.
We have specific in house tools that we use to value a property, however using the below method should give you a figure that is similar to what RICS will come out with.
STEP 1. Sold Prices In Your Area
The first step to researching your property valuation is to look at what has sold in your area within the past 12 months. You can do this by heading over to nethouseprices.com
and entering your postcode in the sold prices section. This should bring up some statistics of what has sold recently in your area. If you live in a remote area there is a chance nothing will come up with your postcode alone, so you may need to expand the radius a little.
One thing to bare in mind is that sale history doesn’t account for the condition of a property or the amount of bedrooms. So you will need to account for this when you record the top 3 recent sales within your postcode region. A great way to account for the condition of the recent sales and the amount of bedrooms is to use Rightmove to your advantage.
Our team have access to additional data on Rightmove which we use as part of our valuation process – however there is free sale history information on Rightmove that you can use.
If you head over to this section of Rightmove
you can again search for your postcode. What this search will do is bring up properties that have sold on Rightmove in your area; however they will also include photographs (so you can check out the condition) and also the size of the property.
Again, make a note of the top 3 recent sales and also make a note of the condition of these particular properties and if they have any different features to yours.
STEP 2. Accounting For Differences In Sold Properties
If you take an average of the 3 properties you have recorded you should now have a starting point to what your home is worth. However, your property may be in better/worse condition than the ones you recorded – so you need to account for this. If you have a new extension, conservatory, double garage or any other feature that the other properties didn’t have you need to add this difference onto your average price. You can use this as a guide
for what price to add on for what feature.
Also remember if your sold house price list has any of these features and you don’t you need to discount this from your average.
STEP 3. Is Your Area A Buoyant Area For Sales?
The next thing you need to take into account is whether or not your area is on the up or down as far as property sales transactions go. To find out this information the best place to look is Zoopla
Zoopla does actually give it’s own valuation for property, however it won’t be as accurate as the information and research you are doing here – so please ignore this for now. The information what we need is the yearly price rise. So if you enter your postcode into the sold history page, you will be given a percentage figure stating “rise of xxx% since 12 months”. Take a note of this percentage and add it on to your accumulated sale price so far.
STEP 4. Predicting The Type Of Buyer
At this stage you have a fairly good idea of what your home is worth, and if your area is buoyant you should have no trouble requesting an estate agent to list your property at this price. However, what happens if you want to sell your house fast
and want to know what figure you will likely achieve? The answer to that is fairly simple and a basic calculation should give you an idea of what a cash buyer will pay.
The price you have so far we would call a traditional estate agent sale price. Minus your fees, and minus an average 6 month wait – this is the price you could achieve on the open market.
For a cash sale, in 7 – 10 days to a company like ours, you would be looking at a discount of around 25% of this figure. This may seem like a lot, however if you calculate in fees, waiting for 6 months and being stuck in a chain, it’s actually not too bad. However, it doesn’t suit everyone.
For a none traditional sale such as an assisted sale
, or online estate agent, realistically you need to discount around 10% of the estimated figure.