What Does a House Valuation Take Into Account?
Selling your house is always a huge decision to make. However, if you’re ready to take the plunge, then it’ll probably come as no surprise that there are a lot of extra things you’ll need to take into account.
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A home evaluation is an essential part of the property selling process, telling you how much your property is worth and where you should set your price.
You might also need a house evaluation for reasons other than putting your property on the market, like for property insurance, investment analysis and taxation.
In this guide, we’ll tell you how to prepare for your valuation and what to expect, getting your home on the market in no time at all.
What is a house valuation and what does it entail?
The property valuation is a super important part of anyone’s selling process, as it helps to determine the worth of your house.
A house valuation takes several key factors into account, including the price of similar properties in the area, the conditions of your property and the current performance of the national housing market.
A house valuation is not the same thing as a viewing; it’ll be done by a professional estate agent, not the potential buyer.
What happens on the day?
On the day of the valuation, the agent will look over small jobs and quick fixes you might want to deal with before selling. Most agents won’t take any pictures.
It’s is a good opportunity to ask questions about the current state of your property. For example, you can ask if it’s worth re-carpeting or completing any small decorative jobs to boost the value of your home.
The agent will make notes on the rooms, take measurements and ask you some questions. These questions may include:
- When were your windows last replaced?
- What’s the age of your boiler?
- Is the property on leasehold? How long is left on it?
- What special features make your house unique?
- Is it a joint ownership?
- Are there any maintenance issues or structural problems?
Answer all the questions honestly and to the best of your knowledge; this will help both you and your agent come to an accurate valuation.
The agent will probably want to discuss their marketing strategy, as well as their fee. Remember that the cheapest option might not always be the best one – you should try to get to know your agent to see if they’ll do a good job and get you the best possible deal.
You can get to know your agent a bit better by asking questions about how many houses they’ve sold in the area, or how many houses they’ve sold like yours.
The agent should provide you with recent house prices that have been sold in the area, as well as the prices of current properties; this will help to inform how much your house should be marketed at.
The agent might also go through expected moving costs, timescales and tips to improve the marketability of your property.
What factors are taken into account?
During a valuation, your agent will take a number of key factors into account, including but not limited to:
- The age of your property
- The size of your property, including the number of rooms and the size of your outdoor space or garage if you have one
- Any wear and tear to the property
- Any necessary structural improvements
- Any extensions, loft conversions and renovations that would add value to your property
- The property’s fittings
- The room layout and dimensions
- The state of your electrics and heating
- Any extra features including double glazing, insulation and flooring
- The amount of storage space on offer
- The desirability and curb appeal of your property
- The location of the property, including the area’s local transport links, parks, schools, shops and restaurants.
- The level of demand for similar properties in your area.
How can I set up a valuation?
While you can get some valuation services online, it’s incredibly important to have an accurate one, so we strongly recommend having an agent visit your home.
What will it cost?
Some agents might charge a small fee to evaluate your house, but this will all depend on the agency you choose. A chartered surveyor valuation typically costs around £250, while a Home Buyer Report is about £400.
Your house might also undergo a mortgage valuation survey, the cost of which depends on the mortgage lender and size of the property; it will most likely cost you in the range of £150 to £1,500.
Getting value from your valuation
In general, as long as you work with a trusted and reliable estate agent that you can build a good relationship with, then your property valuation should run smoothly and successfully.
Just be ready to ask lots of questions, listen to what your agent has to say, and always ask for a second opinion if you’re unsure of their advice.