An accurate and realistic valuation of your home is key to selling your property fast. If the asking price is too high, a potential buyer will not be interested. On the other hand, a low valuation may attract many offers and result in a quick sale, but you won’t sell your home for the price you want. By choosing the right estate agency, you can be sure that your home’s valuation is accurate and that it sells for the right price.
If you are considering moving home, it’s crucial to find an experienced estate agent. The best estate agents in your area have a working knowledge of the local market. They will consider all relevant factors to come up with a realistic property valuation report. In addition, they will give expert advice to make your home more appealing to a prospective buyer.
How can you be sure that an estate agent’s valuation of your home is realistic? This helpful guide will help you understand how estate agents come up with a suggested selling price. Armed with this information, you will be in a better position to choose a professional to help sell your home.
What estate agents look at when valuing property
Estate agents consider several factors in pricing a property. One of the most crucial factors is the average house price of similar properties in your area. However, a house valuation also depends on market conditions, property location, size of rooms, the kitchen and bathroom and the potential for remodelling.
However, a professional estate agent will also use their personal experience. This is a vital factor to consider when selling your home. In addition to location and property size, a property valuation will also be based on the following factors:
- Proximity to schools and amenities
- Any extensions or remodelling work already carried out
- Quality of work in the property
- Size of the garden and outdoor space
- Kerb appeal
- Access to public transport and main roads
- The reputation of the neighbourhood
- Noise levels and potential disruptions from roads, airports, or railways
- Does the home have a garage, driveway, or on-street parking
An estate agent will gather as many facts as possible about your home and neighbourhood to put together a realistic valuation. Because no two homes are similar, a valuation of your home may differ from a similar one in a nearby street.
Your estate agent will also consider market conditions when valuing a property. For example, selling a home in a buyer’s market is more challenging for homeowners. If supply exceeds demand in the current housing market, you may struggle to sell your home for the maximum price you hoped for.
Are estate agent valuations accurate?
An accurate valuation is vital if you want a quick sale on your home. However, the speed of sale is not always the most critical factor. Selling your home for the highest possible price is usually foremost in a home seller’s mind.
The best way to understand if the estate agent’s initial valuation is accurate is to conduct some market research. Thankfully, this is not as challenging as it seems.
For example, you can look at the average price of homes sold in your area during the past six months. You could also check out online valuation tools such as a house price calculator to get a rough idea of your home’s value. However, never base a decision solely only on online valuations.
One reason why a home seller may question the estate agent’s home valuation is if a chartered surveyor’s valuation differs significantly. For example, the surveyor’s appraisal may be lower because they are working to a stricter set of guidelines.
Of course, there could be a situation where an estate agent overprices a property to get a higher commission fee. However, the valuation could be higher than the surveyor’s because the agent uses local knowledge and experience to provide a realistic valuation.
Do estate agents overvalue properties?
How can you know if an estate agent has inflated the valuation? In some cases, it’s tricky to tell if your house is overvalued. But it’s rarely in an estate agent’s interest to overestimate a property’s value. Instead, a respected estate agent works in the client’s interest and helps sell the house as quick as possible.
Here are two tell-tale signs that a property is overvalued:
- There is no interest in the property for sale
- Prospective house buyers put in low offers
Because they work on a commission rate, some estate agents, unfortunately, overvalue properties in the hope of getting more clients.
What a realistic market price will be
Estate agents should have a good idea of what is going on in the market. They use their experience to provide a realistic valuation representing the property’s value in current market conditions. However, if you are selling your home, it makes sense to know what your house is worth.
Suppose you want to know what a realistic asking price will be. In that case, look at what similar homes have sold for in your area. Usually, an online estate agent’s website allows you to filter results based on sale status, location, and the number of bedrooms. Then, if the average price matches your agent’s valuation estimate, you can be sure the valuation is accurate.
Or, you can get data from the HM Land Registry to see the actual selling price of homes in your area. This information will help you get an accurate idea of how much your home could fetch.
Estate agent valuation and surveyor valuation
Most of the time, the estate agent’s valuation and surveyor’s valuation match. However, a chartered surveyor works in line with regulations that the Royal Institute of Chartered Surveyors (RICS) set out. So, their valuation could be different.
The surveyor’s valuation is based on the actual condition of the property and current market conditions. The mortgage lender also uses the valuation to approve any mortgage. The surveyor doesn’t create the valuation on experience, gut feelings, or what they think a buyer would be willing to pay.
If you are selling your home, getting an RCIS surveyor to provide a report is worthwhile. This can provide you with crucial information on potential repair issues. You can address these before putting your home on the market and ensure that your property sells for the top end of the valuation.
How to Choose an Estate Agent
The success of your house sale usually depends on the abilities and expertise of your estate agent. Here are some helpful tips on finding a suitable estate agent in your area:
- Get recommendations from family and friends
- Ask the estate agent detailed questions about how they will arrive at the valuation
- Find out the estate agent’s track record of selling property in your area
- Ask if the agent has experience in selling the type of property you have
- Learn how the estate agent plans to market your home
- Avoid getting tied into lengthy contracts
At Hastings International, we have a team of expert estate agents to help you sell your property. We can give you a free, no-obligation valuation that matches the actual value of your house in the current market conditions. Please get in contact today to learn how we can assist in selling your home.
