Your house’s value is very important.
It determines how much profit you’ll make when you sell it.
Keep reading if you’re wondering how to determine your house’s value.
How to find out your house’s value
You can find out the value of your house in a couple of different ways.
The most common option is to bring in an expert valuer. This could be an independent expert (like a surveyor) or an estate agent.
Surveyors will charge, but you often get this service free of charge from an estate agent. However, estate agents’ estimates will not be as objective as surveyors’.
It’s also possible to do your own research. This might involve desktop research, including checking recent selling prices in your area for similar houses on Zoopla.
Or maybe you’ll discover how much average UK house prices have changed since you first bought the property.
Is a house valuation always accurate?
No, not all house valuations are accurate. Some valuers are far more trustworthy and reliable than others.
You should consider who you bring in to complete this task.
It’s often worth getting a valuation from several different people. This allows you to compare the various prices you’re given and find an average.
Some people argue that estate agents exaggerate a house’s value.
This is because they’re keen to convince buyers to sell with them and not a competitor. Data shows that the average home in England and Wales now sells for 17.1% under its asking price.
You should always bring in a valuer with understanding of your local area.
Each town and city can have unique market conditions, which must also be considered.
The more research you do and the more independent opinions you get, the easier it is to find an accurate number.
Can I work out my house value by myself?
You can often make an accurate estimation of your house value by yourself.
However, most experts recommend that you cross-check this with a valuation by an independent party.
The selling prices of houses like yours are available online. Organisations such as Zoopla display this information.
You can also use websites to see a similar property’s asking price.
Just remember that even though the owner is asking for this amount, it doesn’t mean they’ll get it.
You can check overall price trends for your area, as well. The UK House Price Index and HM Land Registry are helpful.
What impacts the value of my house?
Your house value is not always static.
It can change from year to year or even within a few months. This makes it worthwhile to know what causes these changes.
Type of property
There are many types of houses in the UK. The easiest way to categorise them is by their basic structure with regards to neighbouring houses:
- Detached
- Semi-detached
- Terraced
- End of terrace
Etc.
This is usually used with the number of bedrooms in a property.
Of course, these two points don’t always tell the full picture, but they give a good initial description for connecting sellers with potential buyers.
Type of ownership
There are a few different main types of property ownership in the UK. The two most common are:
- Freehold: The most common type of property ownership. Owners have no lease and are solely responsible for their property and land. They can live there indefinitely
- Leasehold: Owners have a lease from a freeholder, who they often must pay ground rent and a service charge to.
Property condition
Your property’s condition has a significant impact on its value. Buyers will reduce their offer if they need to do lots of repair and maintenance work.
Not only does this involve time and hassle, but there’s also a cost associated with it.
Unlike with many other purchases, the condition of houses is often considered separate from age.
Listed buildings often sell for more, for example. And new builds aren’t always the most popular type of house.
Market conditions
Your house value isn’t only impacted by factors relating to the property. External influences in the market have a significant effect, as well.
Whether it’s a ‘buyers’ or ‘sellers’ market influences how many people are interested.
And interest rates will influence the affordability of mortgages. This all translates into how much a buyer will pay.
Local amenities
Homeowners want to be in a convenient location. This includes local amenities such as:
- Schools
- Hospital
- Library
- Supermarket
- High street
- Parks
- Garages.
It can often save the owner money to be close to these things.
On the other hand, you’ll find some people who want to be far away in the countryside – and thus not close to any amenities.
This latter scenario is more common for people in the later years of their life.
Square footage
Square footage refers to the floor space in your house.
The larger your property’s square footage, the more people that can typically fit inside.
This makes it convenient for larger families who need multiple bedrooms and bathrooms. A house with a higher square footage usually sells for more.
Decoration and add-ons
Your property’s aesthetic is equally important for buyers.
This includes details such as:
- Lamps
- Curtains
- Furniture
- Paintings
- Carpets
- Wall colours.
Which of these components is included in the sale of the flat is especially crucial. Negotiation will often occur around this subject.
Documentation
There will be documents relating to your property that impact its value. Examples might include:
- The Energy Performance Certificate (EPC) rating
- How long is the lease on a flat
- Whether an extension was made without permission
- Any ongoing disputes with a neighbour.
All these details can make life much more complicated for your new owners if they’re not adequately in order.
Outdoor space
Outdoor space dramatically impacts how much area you can enjoy while living in a house.
If you’ve got several young children, for example, giving them a space to run around in can be crucial.
The larger your outdoor space, the more your property will likely be worth.
How to increase my house value
Adding value to your home is often possible with some work and investment.
For example, increasing your garden size or getting closer to local amenities can be difficult. But there are still steps you can take to improve its worth.
Stage it well
You should stage your house well before viewing day. This might involve repainting walls or fixing broken appliances.
Clean your carpet and the bricks outside your house, as well. These cosmetic details can make a big difference.
Get an extension
Consider making a more significant, more permanent change.
This could be an extension on your home that increases square footage. Or perhaps you’re going to put it in a garage so you can store a car.
Gather all documents
Improving the documentation around your house is critical.
Gather a gas safety certificate, Energy Performance Certificate, proof of planning permission for changes you made, and so on.
Time it well
Your timing on the market is also critical.
Your house value increases when supply is low, but buyer demand is high. But in the opposite scenario, you’ll need to reduce your price.
These external factors can make a difference even if it’s the same house.
