How to Estimate the Value of Your Home
If you’re looking to sell your home, the first question you might have is, ‘how much is my home actually worth?’ Technically, the answer is whatever someone is willing to pay for it, but that answer may not be satisfactory, because you have to put a price on your property once it is listed for sale and you don’t want to undervalue it. The answer you’re probably looking for is what the value is, based on the market, or what an estate agent says. But why not also calculate it yourself to see if it compares? If you know the value of your own home, it puts you in a better position to sell, as well as refinance or tap into the equity of your home. It also helps you understand your financial health overall, and if you’re selling your home, it can determine the kind of new home you can purchase on your budget.
Here are some tips on how to find your home’s value.
Remember, It’s Not an Exact Science!
Managing your expectations for your home’s valuation is important so you can properly consider all the aspects surrounding the value. There are many factors that can affect the valuation, including:
- Freehold versus leasehold
- The size and layout of your home
- What kind of repairs or upgrades have been completed recently or are needed soon
- Neighbourhood
- What amenities are nearby, including transport
‘Hidden factors’ can also affect the value, like the home’s wiring, the state of the boiler, any plumbing issues, or any other problems that are not obvious right away. In general, the more improvements you make to your home, the more the value is likely to increase.
Research the Homes in Your Area
Use property portals to check out listings in your area, and if possible, specifically on your street, to see what the going rate is and to get an idea of what the houses in your area are selling for. You can also monitor these properties to see how fast they sell, and whether or not they sell at asking price or more. If a property on your street that is comparable to yours is listed at a certain price and sells within a week, and for more than the asking price, you can gather that the market is hot, and that particular property is in-demand. This gives you an idea of where to start for your own home.
If you want to take your research further, I’d usually suggest viewing similar properties in the area, however at the moment we would do not recommend unnecessary appointments so I would instead take a look at the properties video tour. That way you can compare the state of that property to your own, including if the layout is similar, if any upgrades or renovations have been made, and what kind of differences there are that may affect your home’s value against theirs. You might not be able to get everything from a video tour but any decent agent will spare 10 minutes to have a chat with you about it! This is a great way of getting first-hand information about where to start valuing your home.
Use Tools Online
A quick Google search of the term, ‘how much is my home worth?’ will give you pages of results of home value estimators that you can use online, as well as services you can hire to come to your home and get a third-party opinion. If you’re using an online home valuation tool, also called an automated valuation model or AVM, then you’ll need to part with information about the property and about yourself too so don’t be surprised if you get a call the next day from someone following it up! The valuation given to you is estimated based on information available from public land registry data, so keep in mind it’s only a very rough guide to help give you a starting point to get the right market value.
Get a Valuation from a Professional Estate Agent
The best way to determine the value of your property is to enlist the services of an estate agent who has excellent local knowledge. An estate agent will come to your home and conduct a market appraisal ensuring you get a thorough, accurate valuation.
When you instruct a market appraisal with us, we will evaluate the current market, your property and comparable properties to give you a good overall picture of where your valuation comes from and, depending on your circumstances, suggest an appropriate asking price.
Thanks for reading
Michael
Thinking of moving? Call the office on 01535 666031, call me direct on 07557 088460 or email me: michael@leightonsestateagency.co.uk for honest, expert and friendly advice.
