How Do I Find the Value of My House?

If you are considering selling your house or remortgaging, you may be wondering how your property is valued. It can be difficult to determine the value of your house because you will undoubtedly have a financial and emotional attachment. For this reason, many people overvalue their property.

In most cases, people will consult estate agents to establish the value of their property. Using an estate agent can be a great way to get a rough value range. However, you will find the values given by estate agents may vary greatly.

This guide explains how to arrive at the most accurate value for your property, so you get the best sum when you come to sell. Let’s explore how to find the value of your house.

What Factors Influence My Home’s Market Value?

There are several factors that impact the value of your home. The most common are:

• Location
• Condition
• Décor
• Restrictions on your title deeds

Location

The age-old expression location, location, location is a truism. Your property location has a profound impact on your property value. If your property is situated in a desirable part of town compared to an undesirable neighbourhood you could find that the value difference is staggering.

Also, of importance is how close you are to transport links, schools, and local amenities. Even rural properties where buyers are seeking seclusion will be negatively affected if there is not easy access to shops and pharmacies etc.

Condition

The condition of your property is extremely important. If the property is in disrepair, you may find it difficult to sell as mortgage lenders favour properties in good condition and buyers who are able to afford the property without a mortgage are rare.

If you are considering selling your property you should ensure you complete all general repair works. Failing to do so can result in your property being down-valued and the cost of the down-value can far outweigh the cost of repairs.

Décor

Buyers favour properties they can move into and make their own without too much renovation work.

If your property has unusual décor or design choices it is probably a good idea to remove the decoration wherever possible and provide a neutral environment for prospective buyers to imagine how they will decorate.

Like repairs, niche décor choices can down-value your property.

Restrictions on Title Deeds

If your property is a leasehold and there are service charges applicable, you will find it more difficult to sell than if you held the freehold. This is becoming an increasing problem with government intervention on the horizon due to high service charges being more common.

Likewise, if your property has any unusual restrictions on the deeds such as public access or the property is listed, you should expect this to negatively impact the price. While there are some buyers who will desire listed properties, the reality of maintaining a listed property is costly and buyers tend to shy away.

You will notice online estate agencies like Zoopla and Rightmove have listed properties valued far below comparative properties of the same size for this reason.

How to Calculate the Value of My House

Your first step should be to consult a few local estate agents. They will visit the property and then compare it to other properties in the local area to arrive at a price.

Estate agents have limitations though. For example, some estate agents will overvalue the property to try and entice you to sign up with them. Once signed up they will market the property at the agreed price for a few months before requesting you drop the value. When you agree to list with an estate agent, they often tie you into a contract with a penalty for exiting early. Beware of this tactic.

You can also pay for a professional valuation. These valuations are more detailed and are far more accurate. They are not infallible though and at the end of the day, your property will only be worth as much as someone is willing to pay for it.

Can I Value My Own House?

Yes, there is nothing stopping you from valuing your own property.

In fact, if you are sensible and know your area well, you might arrive at a valuation that is more realistic than an estate agent’s valuation.

The key to valuing your own property is to be dispassionate. Look at the facts such as recently sold values. Assess the features and drawbacks of your property and find a value you are happy to sell at that is also realistic for a buyer to purchase at.

Mortgage Valuations

Most UK house purchases are made with some form of mortgage. Mortgage companies care about risk and profit margins. They do not care about whether an estate agent has inflated the property value, and a buyer has accepted that price.

Many sellers have fallen fowl of mortgage valuations, and the problem is you might be quite far into the sales process with solicitors’ fees being paid. A down-valuation from a mortgage lender can be disheartening and costly for sellers, so the best way to approach valuing your house is to be extremely conservative from the outset.

Why is Calculating Your Property Value Useful?

Valuing your house is useful if you want to sell and ensure the sale goes through smoothly. The best outcome is to have a price you are happy to sell at and a buyer is happy to buy at. Because of mortgage valuations you should err on the side of advertising slightly below what you might consider the market value of your property.

Do not overdo your minimum price though as you still want to ensure you maximise profit on your sale.

If you are remortgaging, it is excellent to know the up-to-date market value, especially if you want to use the equity you hold to borrow more money. Knowing the value will allow you to budget correctly and have realistic expectations about how much you can borrow.

Ready to Sell Your Home?

If you are ready to sell your house or are looking to remortgage, it is extremely useful to contact a mortgage broker. Mortgage brokers will be able to highlight any areas you might have missed when valuing your property and advise you on a range of mortgage products to best suit your circumstances.

Boon Brokers is a Whole of Market Mortgage, Insurance and Equity Release Broker. Boon Brokers provides fee free mortgage advice.

Book your initial no obligation consultation with Boon Brokers today.