Property valuation is an art and not a science. Valuation is based on experience, research, comparisons and gut feel too.
We use various websites to assist with our property valuation including:
- Right Move house prices
- Zoopla house prices (note that some agent's only advertise on either Right Move or Zoopla - therefore you need to check both.
- Right move current advertised properties as the market prices could have changed from the sale prices which would have been agreed months ago by the time that the land registry disclose the sale details
- Google Street view
- Promap ordanance survey maps
- Essential information group auction data from sales which have taken place by way of auction
- Aerial view: This provides a view from above so that we can identify any risks and the aspect. Ie the property could back on to a river, motorway, cemetery, warehousing or something noisy, dangerous or unsightly.
- Local news for the area ie regeneration, crime etc
- Are there any know issues with the property or locality?
Research of properties is essential
- What type of property do you own?
- What features does you property have?
- Do you have a garage, off street parking, extension, loft conversion or a basement?
- Is your property double glazed?
- Do you have gas central heating?
- What size plot/gardens do you have?
- What age is your property?
- How would you describe the condition if rated 1-5, 1 being the best and 5 being the worst?
- How is the local housing market now?
- Do you have a view over a park/open field/farmland?
Answers to the above questions will help you find the best comparison properties.
Compare the property to others similar and you need to find the most relevant match
Start by comparing the most similar properties within 1/4 of a mile. You should make a spreadsheet to compare the 3 most comparable properties within the shortest distance to your property. You should add a column to advise the strengths and weaknesses between comparable properties which have been used in your valuation.
Here is a case study:
Your property is a 2 bedroom mid terrace house with double glazing and gas central heating. The property benefits from a single story rear extension.
You estimate that the property is late victorian built before 1900 and you estimate that the condition is 3 based on the aforesaid scale.
You have an average sized garden and no parking.
You live at number 1 Data street.
You start by researching properties which have sold on Data street within the last 6 months.
Another similar property sold which you've rated in 5 condition
The sale completed within the last 6 months at a price of £100,000
Your property is in slightly better condition than 1 data street
You estimate that you would need to spend £10,000 on the other property to make this most comparable to number 1
Therefore your property should be worth £110,000-120,000 assuming that there have been no market fluctuations. You can find out the answer to this question by speaking to local estate agents and asking how they consider the property market now compared to 6 months ago.
Is the market:
- The same
What if you can't find any comparables on your road?
Look further. Are there any properties on the surrounding roads which you consider similar. Usually with terrace houses many of the immediate roads which are parallel or perpendicular, have similar average house prices.
Ensure that you are comparing your properties to the most closest match
Finally call local estate agents and enquire with them over the phone about what they have sold similar properties for within the last 3 months which should hopefully be a comparable market unless there have been any significant changes in the economy during this time ie a recession.
Watch the video below which explains more about selling your property fast or click here to continue reading this article