When it comes to selling your property, determining its value is a pivotal question. Setting the price too high can deter potential buyers, leading to delayed sales and potential price reductions. Conversely, you want to maximise the return on your most valuable asset. Assessing your house’s value is a delicate balance, and while you can get a rough estimate through online tools or personal research, obtaining an accurate guide price requires the expertise of a local estate agent, as opposed to relying solely on free online valuation tools.
1. Online Valuation Tools: A Starting Point
To get a preliminary idea of your house’s value, begin by exploring online resources. Check property portals like Zoopla for a free estimate and examine sold prices of neighbouring properties. You can conduct your calculations by looking at nearby sales, determining a price per square foot, and applying it to your home. The Land Registry offers an in-depth tool for researching sold house prices.
For a more comprehensive estimate, consider using an online valuation tool such as Hometrack‘s Property Valuation Report. By providing your postcode and basic property information, such as the number of bedrooms, bathrooms, square footage, and the home’s age, you can receive a valuation report via email within minutes for a fee of £19.95. Keep in mind that these online valuation methods rely on data from nearby properties and may not provide pinpoint accuracy, with your property’s true value possibly varying by up to 15%.
These online tools are most accurate when applied to areas with numerous similar properties. Valuing a standard three-bedroom Victorian terrace in London is more straightforward using this method than evaluating a unique rural house.
2. Seek Local Estate Agent Expertise for Accuracy
It’s advisable to consult with at least three local estate agents to assess your property’s value. Local agents possess a deeper understanding of house prices in your specific neighbourhood, where even within the same postcode, different streets or ends of the same street can command varying prices. They can also consider factors like garden size, proximity to local schools, and the property’s overall condition, factors often overlooked by online valuation tools.
When selecting an agent to work with, don’t base your decision solely on the highest estimated value. To narrow down your choices, consult our guide on how to choose the most suitable estate agent.
3. Buyer Influence on Property Value
Keep in mind that the ultimate value of your house is influenced by the type of buyer interested in it. While an estate agent may suggest an asking price, the true worth of your property is determined by what a buyer is willing to pay. This may seem self-evident, but the price you receive is significantly influenced by the buyer’s intentions.
Buyers who seek a personal residence are typically willing to pay more, driven by emotions and their desire for a home. In contrast, buy-to-let investors might pay around 10% less than owner-occupiers. Professional landlords adopt a more detached approach, buying properties with confidence in their potential rental yield. Quick sale companies offer the lowest prices, promising fast transactions, but at a substantial discount, possibly as much as 25% below market value.
4. Enhance Your Property’s Value
Before requesting valuations from estate agents, invest time and resources in improving your property’s condition. While we will delve into strategies for increasing your home’s value in a future blog, start by ensuring it is clean, well-organised, and aesthetically appealing. Remove grime, clutter, and vivid colour schemes, as these can discourage potential buyers and subsequently reduce your estimated value.
Other tips to enhance your property’s value without major expenses include:
- Maximising the number of bedrooms. The bedroom count significantly influences property valuation, so consider converting a former bedroom used as a study or playroom back into a bedroom.
- Avoiding empty rooms. Furnishing a vacant room can help buyers visualise its potential and size.
- Improving the curb appeal by replacing the front door and maintaining the garden. First impressions matter.
5. Inform Agents About Property Enhancements
If you’ve recently upgraded the boiler, enhanced insulation, or integrated smart home automation features, be sure to inform the estate agents. These features can make your property more appealing to potential buyers. Additionally, heed the advice of estate agents—they are experts, and if they recommend repainting a room in a neutral colour, it’s worth considering.
6. Thoughtful Pricing Strategy
An estate agent can provide a realistic idea of the potential sale price for your house. The initial asking price significantly affects the level of interest your property generates. Setting the price too high may result in minimal viewings, while setting it too low may raise questions among buyers. Striking a balance by listing at an attractive yet realistic level, considering the local market, can lead to more viewings and potentially ignite a bidding war.
Alternatively, let Conveyo handle the work for you! Conveyo will arrange and coordinate valuations with your best local agents, those most likely to have a buyer for your home. The result? A quicker sale at a higher price. Get started today, for free.