If you’re looking to sell your home, you will be very interested to know one number.
The value.
You may have an idea of what this will be, or you may not have a clue, and that’s why enlisting a trusted estate agent to work out the value is essential.
But just how do estate agents work out the value of a property?
And what can you do to add a few extra pounds to the value of your home?
Let’s find out.
Look at the Location
Before an agent even steps foot in your home, he will have an idea of a roughly how much the house will be worth.
This is down to the location.
Where a house is located is one of the most important aspects of deciding a property value. If it is in a sought-after area that is close to local amenities and things such as schools, then the house price will reflect this.
If an area is in high demand, then house prices have been known to soar, and if your home is close to convenient transport routes and in a popular town or city you can expect to be offered a high value price.
Alternatively, if you have a lovely, secluded location with a large garden and no noisy neighbours nearby, this will also reflect on the price.
All of these characteristics will be looked at before the agent visits your property and are sure to influence their decision massively.
How Big is the Property?
If you’ve ever been searching for a property, you have probably paid a lot of interest in the floorplan. This is a 2D image showing the sizes of every room, often to the nearest centimetre or inch.
When an estate agent is looking around your home, they will measure each and every room and use this information to work out a value.
Can your bedrooms all fit a double bed in? Is there space for a table in what could be the dining room? How much space is available for cooking in the kitchen?
If you have a one-bed house in London and were thinking of turning a spare room into a second bedroom, then this can be very beneficial. In fact, if another room is big enough to turn into a second bedroom, your value can see a whopping 50% rise.
When it comes to valuing a property, size certainly matters, so this is something that is sure to have a big effect on how much your property goes on the market for.
Impressive Interior
As an estate agent walks around your house, their mind is constantly performing calculations.
Do you need a kitchen renovation? If so, you can expect the price to drop to reflect this.
A new kitchen or bathroom can add up to 10% on a property’s value, so if an estate agent sees a modern interior that looks and feels brand new, the figure in their head will certainly begin to rise.
When people look round a house, they envision themselves sitting in the living room having a cosy night watching television or cooking a nice family meal in their new kitchen. If these things have been neglected and now look tired and old, the price will have to be dropped to reflect this.
An estate agent wants to sell your home, and if it contains freshly painted walls, a nice log burner or fireplace and lovely new doors and windows for example, it makes it a lot easier to sell at a higher price.
Prices on the Street
One of the key indicators of what your property will be valued at, is the price of similar houses in your area that have recently been sold.
If you own a three-bed semi-detached property, which is almost identical to your next-door neighbours house which sold for £250,000 a few months ago, you can expect to see a similar price.
Of course, there are variables, such as the state of the house and how modern it is, but looking at recently sold homes near you is a good idea of how to gain a rough idea of the value.
When explaining a value decision, an estate agent will often run you through the recent sales nearby and show how this has influenced their decision. If you are interested in this, don’t be afraid to ask.
An estate agent will have a set price for a three-bed in the location of your home before they view your property. It is then up to your property to change their mind and show why it should be valued higher.
Another thing to take note of is how many houses are up for sale in your area. If there is a lot going up for sale? If so, then it’s important to work out why this is. Has something changed in the neighbourhood such as a school closure?
If you want a quick sell, you may need to make your price lower in order to attract more views over the abundance of similar houses that are on the market.
Finally, the state of the market is also hugely important. If houses are lingering on the market for months, it may not be a good time to come in at a high price.
If houses are being snapped up in days, then you can afford to go in with a higher price.
What do You Want?
There are many reasons people want to sell a house, and the estate agent will ask you yours.
The reason for this?
Well, some reasons for selling are reasons that may put people off buying.
If the house needs a lot of work doing to it, or you believe the location of the house has gotten worse, you can expect the price to reflect this.
Also, you must remember that the estate agent will want to know how quickly you want to sell.
If you have seen the house of your dreams but need to sell before you can buy it, you may be looking for something to go through as soon as possible.
Let your estate agent know this and they can work with you on what value the house will go on the market for.
The lower the price, the more interest you will receive and the quicker you can sell your home.
What is the State of the Essentials?
Most estate agents will have a list in their mind of essential things that they need to know the condition of before deciding on a house value.
Is there signs the roof is leaking? Has this caused mould to form on some of the walls and ceilings?
Does the boiler look like it will soon need replacing? Or is there some damaged pipework that is stopping the central heating working?
Making sure the structure and appliances of a house are all up to scratch means that new buyers won’t have a huge outlay on repairs when they move in.
If a house needs a new roof this can be a huge expense, so you can be sure the price will reflect this.
The estate agent will ask these questions, and it is definitely worthwhile to be honest as any issues will be found further down the line during the survey and you may lose some fees already paid out.
Quirky Features
Another thing an estate agent will take note of is the unusual features that your house has.
If you have an open-plan kitchen and living room, or maybe have built a seating area in your garden or an outside home-office, these will all be taken into account when a value is being calculated.
Have you applied for planning permission for an extension which has been accepted? Have you lowered the kerb to provide off-street parking? Could your loft easily be converted into another bedroom?
These are all things your estate agent will pick up on when looking around your home.
When people buy a house, they are looking for potential. If you can provide some great features in the present, and some features that could easily come to fruition in the future, then this will be reflected in the value of your home.
Summary
Estate agents do a lot more than take a look at a house and decide on a number. Research goes into the location, the state of the market, the kerb appeal, and the structure of a property.
There is a long list of characteristics that combine to create a property value, and each one has to be carefully considered before deciding on the perfect price to maximise money made, and the potential for a sale.
If you want a house valuation today, then visit our super online tool for a quick figure.
Want something more in depth? One of our team will be happy to come and visit and speak with you regarding the price of your property.