How a property is really valued

Every homeowner wants to know how much their property could sell for, and some have a very specific idea of what they believe it’s worth! But the reality is that any property is simply worth what someone is willing and able to pay, at the time you want to sell.

There are so many variables to take into account that can affect a property’s price:

• condition of the property
• the layout
• how many other similar homes are on the market
• how many buyers are currently looking for that kind of home
• the availability of mortgages
• the wider economic climate.

A lot of these things we can’t control, and it means that the value of a home can go up or down - sometimes within a matter of weeks - depending on external factors. 

So, when it comes to choosing an agent to sell your property, to get the most accurate valuation, you need to find one that knows the market well enough and, importantly, evidence of how they arrived at it.

How we reach a market price

The main guide for valuing a property is the price comparable homes have sold for recently in the area. We look at our own stock that’s under offer and also other local agents’ sales that have completed. Then we use our knowledge of the current supply and demand for your particular type, style and condition of home to arrive at our valuation. Often, there won’t be an exact value for a property, but a range, for example £325,000 to £350,000.

The amount your property is listed for can also depend on your own personal circumstances. If you aren’t in a rush to sell – and particularly if there are a lot of buyers looking in your price bracket and supply isn’t keeping up with demand – we might recommend a slightly higher valuation. When there’s not a lot of stock out there and buyers are competing for the properties that are available, that can quickly drive up prices, meaning properties achieve more than our initial valuation.

On the other hand, if you want or need to sell quickly, we’ll suggest a price that we believe should attract good interest right away and encourage early offers, even in a slow market.

So, once we’ve understood your position, we may give you two prices or price ranges: the amount we expect the property to ultimately sell for and the price at which we believe it should be advertised.

What if my home is one of a kind?

If your property is unique, there may simply not be any comparables. In that case, it’s even more important you choose an agent that’s experienced in selling unique homes like yours, who can explain how they arrived at their valuation. Often, with very individual homes, we will take a current average price per square foot as a guide and then combine that with our knowledge of the current market and the kind of price suitable buyers are willing and able to pay for your type of home.

I’ve had several valuations - how do I decide which agent to go with?

The three key questions to ask yourself are:

1. Am I happy that the valuation is realistic?

All agents should be happy to show you comparables that support their valuation. Some agents will quote a market price that they know is over-optimistic, simply to get your business, so if one of the valuations is significantly higher than the others, go back to them to find out more about how they arrived at that figure.

2. Is the agent a member of one of the industry’s self-regulating bodies: Propertymark, UKALA, RICS or Safeagent?

All members of these bodies have to work to a code of practice and comply with the legal requirements to belong to an Ombudsman and have client money protection. By choosing an agent that’s a member of Propertymark (as we are), you can also be confident they are properly trained and have legal support.

3. Do I like them?

You are relying on your agent to vet potential buyers, carry out viewings in your home – possibly when you’re not there – and negotiate the best sale price, and you may be dealing with them for several months, so it’s vital that you like and trust the people you’re dealing with. Trust your gut!

If you’re considering selling your property or would simply like an up-to-date market appraisal, simply get in touch with your local branch and they will be happy to arrange a free, no-obligation valuation.