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Value your Home in Five Easy Steps

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By : Andrew Potter    99 or more times read
Trying to work out how much your property is worth can appear to be a daunting task. However, valuing a property is not an exact science and you don't have to be an estate agent to know how to do it!

We've put together a guide to help you to value your property in five easy steps.

  1. Look at similar home in your area that have recently sold or are on the market

    There are two categories that these properties can be split into:

    • Properties that have sold recently where the sold price is in the public domain

    • Similar properties that are currently on the market and attracting interest from similar buyers

    When looking at properties for sale or sold properties in your local area, you should try to look at those that are most similar to yours. If you can find one on the same street as yours or on a neighbouring road then that will give you a great indication what your property is likely to be worth.

    Sold prices are normally available in the public domain and can be accessed by looking at the land registry or sites such as Zoopla which show this data in an easily searchable format. Be aware though, the property market is capable of changing quickly, so if sold prices 6 months ago are significantly higher or lower than present properties on the market, there is a good chance the market has moved.

  2. Use Adjustment Figures

    If there are no properties in your local area that are a good comparison to yours, you will need to use adjustment figures to bring your property in line with those properties that are for sale or have sold in the local area.

    Calculated in the correct way, adjustments figures can put a numerical value on improvements or extensions that have been added to properties that you are comparing against. The value you need to take into account is the ‘cost recovery’. The cost recovery is the increase to the value of the property as a percentage of the money spent on the extension or improvement.

    What will return 100% cost recovery:

    • Adding an extra bedroom that blends into the style of the house

    • An extension to the kitchen to make an open plan kitchen dinning area

    What will return 50% cost recovery:

    • A modern fitted kitchen

    • A conservatory

    • A newly tiled roof

    What will return 25% recovery:

    • A landscaped garden with water features

    It is also worth bearing in mind that some ‘improvements’ can actually reduce the value of a home. For example, a badly built or unattractive extension could make a property worth considerably less. Likewise, modern double glazing fitted to a period building may not actually add value to it.

  3. Location, Location, Location

    When placing a value on any property, location is crucial. To take one example, a house on a main road may be worth considerably less than the same house in a leafy culdesac. Important factors you should consider are:

    • How far away is your house from good transport links? Commuters who have to travel to work in the city on the train every day, will pay a premium to live in a property that is only moments from the station as opposed to one that is a couple of miles away.

    • Are you in the catchment area for the best schools in the borough? Education and sending children to the ‘right’ school is valued more, highly than ever before by parents today. If your property is in the catchment area for one of the better schools in the local area as opposed to being just outside, it could make all the difference.

  4. Unless your Property is a New Development than Don’t Compare it to one!

    There is plenty of evidence to suggest that lots of buyers are prepared to pay more to live in a brand new development than an older property. Unless you are selling a property in a new development then it is advisable not to compare it to one.

  5. Be Prepared to Justify your Property Price if asked by a Potential Buyer

    Some buyers may question your asking price and you should be prepared to defend it. Try to have answers ready to pre-empt any likely questions from interested parties. You should be able to easily real of the reasons for your asking price, such as extensions, a modern kitchen and sold prices of similar properties in your area to justify yourself. You can even go as far as logging on to sites such asZoopla where housing data is available so that if you need to show sold prices of similar properties in the area you have it ready to hand.
This article was written by Andrew Potter who runs UKonline estate agent, My Online Estate Agent.

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