How do I Understand An Online House Valuation?

Online house valuation is a method of estimating the value of a house using an online tool. It’s an easy way to get an estimated value for a property instantly and from any location. All you need to have is an internet connection and an internet enabled device. You can perform online house valuation on your own without any professional assistance.

How much does online valuation cost?

Online valuation is free. The only costs you’re likely to incur are regular data charges from your internet service provider.

How do I use an online valuation tool?

When you open an online valuation tool, all you have to do is input your post code or address into the required field and send. Many online tools differ in layout and the spectrum of information they need from you. While some sites will take you to a second page to fill in the details of your property, others will let you fill all the required information on the first page. There are other sites that will offer you a tool for online sales valuation and a separate one for online lettings valuation.

Why use online valuation?

Online valuation is popular because it’s a fast and easy way to get an estimate for the value of your house and can be useful when you have no clue what your property is worth.

Is online house valuation the same as price comparison?

Yes. As far as online valuation is concerned, both terms may be used interchangeably. Some websites will call it house valuation and others will call it price comparison while they all offer essentially the same service.

Will a mortgage lender accept to work with the figures from an online valuation tool?

It’s not likely that a lender will want to work with figures estimated by an online valuation tool. Before a lender would offer a mortgage loan, they will have an expert they approve of visit the property and perform a proper valuation. While you might be charged for this if you’re applying for a mortgage loan, many lenders now waive this fee.

 

Does online valuation take into account modifications made to the property?

Online valuation tools don’t take into account whatever improvements or modifications you make to your property unless you specify what these are. Many online tools have options to let you select what extra features your house may have, otherwise the value of your house will be estimated taking into account its conditions when you purchased it.

This could be a useful tool for determining how much value certain improvements will add to your property. You can do a valuation for your property without specifying any modifications, and then perform the valuation a few more times adding one new modification at a time. This could help you avoid spending on improvements that will add little or no value to your house.

How does an online house valuation tool work?

An online valuation tool uses software that estimates the value of your property using data obtained from the Land Registry and property listing sites. The prices at which similar houses to yours have sold for and are being advertised for are analysed to provide an estimated value for your property. Different tools consider various features of your property including the number of bathrooms, bedrooms, whether there’s a garden, conservatory, or garage, and so on. Note that an online property valuation tool will not take into account wear and tear on a property.

How reliable are the figures generated by an online valuation tool?

Online valuation tools are as accurate as possible with the data they are able to obtain. The price a house sells for eventually will be determined by market forces. That is why online tools compare current data on prices houses in your area are being sold and offered for. Remember that any you figure you obtain from an online valuation tool is really an educated guess. To obtain a more reliable estimated value for your property, you should have a surveyor perform a proper valuation.

Where is the best place to get online valuation?

There may be no “best place” to get an estimated value for your property, as all online valuation tools use similar technology to estimate the value of your home.  Many people like to use multiple online valuation tools at a time.

What other options do I have to estimate the value of a property?

There are many ways you can obtain the estimated value of a house apart from using an online calculator, with the most reliable being having a chartered surveyor perform a valuation. Many people go to estate agents for a valuation, however, what an agent will give you is a price your property can sell for on the market. Such a figure cannot be relied upon during legal proceedings to settle divorces, estates, or taxation.

If you’re not ready for a professional valuation or don’t need one immediately, there are other ways to arrive at a rough estimate for the value of your property. You can find a local estate agent or broker in your area to visit. Find out what the asking prices for houses similar to yours are, as well as the prices such houses have sold for in the past.

Also, if your neighbourhood holds ‘property tax’ meetings, such gatherings could be a good opportunity to speak to your neighbours about prices of houses in the area. A combination of these efforts should give you an idea of what to expect from a professional valuation. Note, however, that the figures you come up with may be way off.

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Published on 31st May 2017

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