When valuing your home, it is important to remember that the figure you arrive at will only ever be an estimate. Whether you use online calculators or a local professional, even well-informed guesses are only a snapshot of a particular moment in time.
While the coronavirus pandemic, and its effect on the market, has shown how quickly valuations can change, that doesn’t mean that you shouldn’t strive to make them as accurate as possible.
There might be any number of reasons why you would want to find out your home’s value. Whether you are looking to sell, considering home improvements or just want to understand the value of your estate, either over or undervaluing your property’s true value could lead to significant problems.
Here are five simple ways to help you find your home’s value.
1. Understand what affects your home’s worth
Many factors affect the price of your house. To find out how much your home is worth, you’ll need to compare it to equivalent properties on the market. Begin by thinking about the answers to the following questions:
- How many bedrooms does your property have?
- Are the rooms a decent size?
- How old is your house?
- Does it have a garden? If so, how big is it and is it private?
- Is there a garage or room for off-road parking?
- Are there any outbuildings, such as a shed that’s been converted into an office?
The pandemic has demonstrated how buyers’ tastes can change.
Figures published in This is Money in July 2020, show that more than 80% of those in the property sector felt that demand for homes with gardens would increase over the next two years. Lockdown is also predicted to lead to the breakup of communal areas in favour of privacy and personal space.
2. Local factors that could make an enormous difference
It isn’t just the bricks and mortar that make a difference to the value of your house. Its location is a huge contributing factor too.
You’ll need to think about:
- The local schools whose catchment area your home is in
- Your home’s proximity to amenities like a GP’s surgery, or shops and restaurants
- Whether the area is undergoing regeneration or is likely to in the future
- The proximity and quality of transport links
- Local crime rates.
But don’t stop there. Look into the performance of local schools and think about the travel times to each, and also look at local GP waiting times. The more information you have, the more accurate you can be when setting a value.
3. Check house prices locally
Once you have all the information you need about your house and its local area, check local prices for comparable properties and see how your home measures up. What are similar types of houses going for in your area?
National averages might give you an overview of the market generally but it’s important to check local prices to ensure you get the most accurate comparison.
Check the HM Land Registry as well as doing your own local research. Sites such as Zoopla offer online calculators and you can also arrange for a local estate agent to give you an accurate valuation.
4. And check for trends over time
It is also a good idea to check prices over recent years to see whether they are rising or falling.
The effect of the coronavirus pandemic on the property market might make this task more difficult but remember that you are only looking for trends. Check prices pre-pandemic and up to between three and five years before.
Rising prices might mean you can afford to increase an asking price slightly while decreasing prices might mean you put off a potential move or alter plans for home improvements.
5. If you’re setting a price, make it realistic
As already mentioned, there are many reasons to find out the value of your home. The most obvious, though, is because you are looking to sell.
Setting a realistic asking price gives you the best chance of receiving positive interest from potential buyers, especially during the important few weeks after your house first goes onto the market. The more potential buyers you attract, the better chance you’ll have of negotiating upwards.
Setting too high an asking price, on the other hand, might put off potential buyers, leaving you having to settle on an inferior offer.
Use online tools and conduct thorough research to help you arrive at a realistic figure and then speak to the experts.
Get in touch for independent advice
At Fingerprint Financial Planning, our team of dedicated and fully independent mortgage advisers can advise you on each step of your homebuying journey. You can read how Fingerprint’s independent status benefits you when searching for a new property, or in any aspect of your finances.
If you would like to discuss any aspect of your current property from selling up to making home improvements or unlocking equity, get in touch by emailing hello@fingerprintfp.co.uk or call 03452 100 100.
Please note
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. Think carefully before securing other debts against your home.
