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How Estate Agents Value Your Home

Written by Posted On Friday, 07 December 2018 01:16

When it comes to selling your home, it goes without saying that you want to achieve the maximum price. While it can be tempting to go with the company who give you the highest value, overpricing your home can be off putting for buyers and therefore, it could take longer to sell.

But how do estate agents reach their valuations? How do you know which one is accurate? And which should you go for? To help you answer these questions, we’ve put together a brief guide containing the main factors an estate agent will use to value your home.

The Local Area

You may know that some postcodes carry a higher or lower price than others, but are you aware that the local area can also factor into your home valuation in other ways?

In addition to school catchment areas and proximity to transport links, the type of shops and facilities nearby can have an impact, too. For example, if there are lots of quaint cafes and upmarket shops, this could indicate a more desirable location and therefore push up prices.

Features and Improvements

When assessing the value of your property, estate agents look at more than just location and size. For example, the standard and condition of a home can increase or decrease the price.

This can include anything from an extension or top-of-the-range kitchen, to a well landscaped garden or maintained period features. All of these have the potential to make a property more desirable and therefore positively influence the value an estate agent will give.

Potential for Improvement

As well as the existing layout and features, estate agents will also take into consideration any potential for improvement. An example of this would be the scope for a loft conversation or space to accommodate a ground floor extension.

In particular, this is something that can be of major interest if you are considering the auction house route. A popular method of buying property with investors, those buying at auction are often looking for properties with the biggest potential for profit and as such, will consider scope for improvement.

Checking Valuation Accuracy

In addition to the factors considered by an estate agent, you can also carry out your own research to help you decide which is most accurate. For example, the HM Land Registry website allows you to look at the price paid for other homes in your area, so you can see how much buyers have paid for similar sized (and standard) properties.

While the overall finish of a home plays an important role when deciding on a selling price, estate agents look into a variety of additional factors when carrying out a valuation. As such, make sure you carefully assess each price you are given, before selecting your selling value.

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