There may be no such thing as a real or genuine value for your property, but you can get a good or fair estimate. The value of your property will actually be determined by the free market, which can hardly be predicted and cannot be controlled. A property valuation is essentially a guideline to what a property will sell for.
Many people go to estate agents to perform a valuation for their property, however, an estate agent can only provide guidance on an asking price. While it is entirely possible for you to estimate the value of your property yourself, proper valuation can only be done by a chartered surveyor.
Property surveyors use three methods to estimate the value of a property:
The value of a property may be estimated by any number of factors including location, the condition of the property, local and national market conditions including at what price similar properties are selling and being advertised for. Other factors include:
No. Many buyers wrongly believe that the price they paid for their property will be a determining factor during property valuation when this in fact has nothing to do with the current value of the property. It also doesn’t matter how much has been spent on the house for repairs and improvements, or how much the owner would like to sell for.
The location of your property is an important consideration when determining its estimated value. Properties located in areas where there are desirable local amenities are expected to be valued higher than those located in areas with fewer or less impressive amenities. Specifically, properties that have good schools, parks, and transport links, as well as a good number of upmarket stores and restaurants around them, normally have great appeal and would naturally command a higher price.
It is not uncommon to find home owners embarking on expensive projects to improve or expand their houses in hopes that it will be estimated at a higher value. Improving or expanding a house does put it in a good position to be valued higher than similar properties without the same modifications. That being said, property owners should be careful not to spend on costly improvements that won’t make much of a difference on the estimated value of the property.
Since there’s not much a home owner can do about the location of their property and it’s impossible to directly influence market forces, the only way to ensure a house is estimated at a higher value is to make desirable improvements to the property. Some of the more common improvements include:
Taking the time to prepare for the arrival of a property surveyor may not lead to much of a difference in the estimated value of your property, but it might make a little difference. Here are a few steps you can take as a final effort to get a reasonable estimated value on your property:
It is possible to obtain the estimated value of your property on the spot, however, it may be beneficial to let the surveyor perform further research before returning with a figure for you.