Ever wondered what the estate agent is thinking whilst they are walking around your home deciding its value? This list covers the aspects that come into play when you arrange a property valuation.
Supply and Demand
As we have seen throughout the last couple of years, supply and demand has a huge impact on the housing market
If demand increases and supply is fixed then the price of the property will rise, as there are more people competing to buy.
If demand drops the price of the property will drop as there are more available properties on the market. Buyers have more choice, so sellers must be more competitive on price.
Location, Location, Location
As Phil and Kirstie know, location is generally known to be the most influencing factor on house value. Two identical properties in two different areas will be worth hugely different amounts. Our estate agents often find house hunters will choose a smaller property than others they have viewed, so long as it is in a more desirable area.
What’s Your Type?
The type of house you own (detached, terraced, semi-detached etc) as well as the style (mock Tudor, Victorian, or Georgian for example) will hugely affect the property value. Some buyers want old houses with traditional features and character, other buyers want new builds with up-to-date fittings.
Size Matters
The size of the building, as well as the size of the plot of land it sits on, has a great impact on the value of your property. Houses are split into useable and liveable spaces. Liveable spaces have the greatest impact on value (these are bedrooms and bathrooms), but useable spaces also contribute (these are garages, attics, basements etc).
General Condition
Some flaws, scratched paintwork, or broken guttering for example, can be overlooked. Other flaws are going to be more costly. If an estate agent notices cracked brickwork or signs of subsidence then this is going to devalue the property, as they are expensive problems to fix, and so their presence must be reflected in the property valuation.