What is my House Worth? 5 Methods to Work out the Value of your Home
Working out the value of a house isn’t easy.
Fluctuating prices, different interiors and location are all huge factors that are sure to have an effect on the price of a home.
In fact, if in the years between 1971 and 2011, if the price of eggs rose at the same rate as houses, you’d be paying nearly a pound per egg!
If you bought a house in this period, how do you know the rate the house has changed value?
For many people who are thinking of selling, they will have a budget in mind that they can afford for the next house, but this number depends on what they can sell their house for.
With that in mind, how can a regular homeowner get a good idea of the price of their home?
Here are five top methods of finding out just that.
1. Take a Look at What has Sold Nearby
Nearby house prices are a good indication of what the state of the market is like in your area.
We’ve all heard a neighbour in shock that ‘number 10 sold for over 300 grand’, and if you are starting to hear that a lot, now may be a good time to sell.
Areas rise and fall (and vice versa) in popularity over time, and this is always reflected in house prices.
There are many easy ways to find out the sold prices of properties near you, and a quick search online often does the trick.
Alternatively, another good indication of house value is checking what is for sale right now. If you live in the Letchworth, Baldock or Hitchin area for example, then having a quick browse of our houses for sale will show what our experts think is a good price.
A word of warning though. Not every house is the same, although they may look it from the outside.
A modern kitchen can add up to 10% value onto a home, and you can keep added if you also can offer a renovated bathroom, or a well-maintained garden.
Comparing your recently refurbished house to one that is in desperate need of a renovation may lead to you undervaluing your home, so be sure to factor this in when comparing prices.
2. Speak to the Experts
One sure-fire way of getting a price that is fair, and reasonable to a buyer, is speaking to an expert.
Valuing a house isn’t done in the five minutes it may take to look around a property. It is done in the research into the recently sold houses in your area. It’s done by focusing on whether the market is hot or cold at that moment. And it is also done to the needs of the seller.
Are you looking for a quick sell? Or are you not in a rush and can wait for the perfect bidder?
All of these will affect what value you want to sell your house at.
But what is that value?
Well, an estate agent knows what to look for in a property to calculate the value.
With in-depth knowledge of the housing market, a value can be quickly figured out, and the best thing, it’s often free.
Unless you’re an expert in valuing properties, there’s nothing to lose in getting an estate agent in, and your home value may be much different to what you initially thought.
3. Use a Value Estimation Tool
Don’t want to wait for an estate agent to come over? Why not use an online valuation tool which can give you an estimate of your home value in minutes?
Simply fill in the details of your home, and these clever tools will do all the hard work for you.
So how do they work?
Well, most tools are backed with data on recent trends in the market, the prices of every postcode, and how different levels of amenities can alter the price.
As you put in your home address as well as information such as the number of bedrooms and bathrooms, for example, the tool will work its magic, taking seconds to give you a valuation.
While this isn’t as in-depth as having an estate agent look around the property, it is a great way of getting a quick and easy idea of the rough value of your home.
Want to have a go?
Try our Leysbrook valuation tool here for a price estimate in minutes.
4. Tally up the Pros and Cons
When deciding to sell, most people will have a rough idea of price in their head.
Maybe they haven’t owned the house for too long, so the price won’t have swayed too far from their original buying price.
Maybe you’ve done your research and worked out the average price for a similar home in your area.
Either way, the price will fluctuate depending on the state of your home.
If you bought recently, but have recently spent £10,000 on a new kitchen, this will have an effect on the price.
On the flip side, if you have noticed an issue with the roof, and a professional has recommended you need a whole new one, this costs over £5000 on average, and this will be reflected in the price.
Tally up what you have spent on the home, the difference in the home since renovating, any structural issues, and added extra such as a loft extension or off-street parking, and you will soon find you are adding (or taking away) a few pounds on your valuation.
5. Ask Yourself What You Would Pay
If you’re looking to sell your home, more often than not, you have one eye on the market.
This will give you a good insight into what house prices really are at, and the state of the market.
A great bit of advice when deciding on a house value, is to think what you would pay.
A house is only worth what people will pay for it, so imagine yourself as a buyer.
What would catch your eye and force you to dig a bit deeper into the pennies?
Are there things that you know would be an immediate turn-off and that would see the price in your head plummeting?
In a nutshell, when answering the question of what is my home worth, it is always worthwhile to ask what would I be willing to pay.
Placing a value on your home is a huge decision.
Go too low, and you will be losing out on a big chunk of cash. Go too high and you risk being stuck on the market with no willing buyers.
There are ways of getting an estimated figure in your head for the value of your home, but in our opinion, it is always best practice to consult a professional.
Through an online valuation tool, or inviting an estate agent to take a look, expert advice is vital in figuring out the perfect number to get a sale that you are pleased with.
And if this position sounds similar to one you’re in now, our team at Leysbrook would be glad to help.
Get in touch today for advice on how to sell your home.