Easy Free Home Valuation Guide For UK Property Sellers Needing Advice By Tyler James-Hall
Property Valuations Estate Agents Valuations The most common misconception about property valuations is that Estate Agents valuations count and are valid. Most people in the UK believe that what an estate agent sayâ€™s your property is worth is 100 percent true, and should be taken as gospel. In actual fact estate agents valuations are just a professional opinion and doing really display an accurate measure of what a property is worth.
Having said that because most estate agents are highly experienced they can usually get the value of a property right, to around 10 per cent margins either way. This does not always mean that they will list your property on the open market at the price they think it is worth. In fact, it is more likely that the estate agent will over value your home on purpose, and list your property at a much higher price in the first instance. The reason for this is that estate agents are generally paid on a commission basis; meaning the more they receive for your property, the higher the fee they can charge. So, they are willing to hold out as long as possible for the highest price they can achieve. Estate agents valuations should not be taken as a solid or accurate way of valuing your home, and you should always seek advice from at least 3 agents if you are planning on listing your property on the open market, especially if you are wanting a fast sale.
Online Valuation Tools Since the dawn of the internet there has been an increase in websites claiming to be able to value your property for free online. Tools like Zoopla dominate the market, however there are many more services whereby you can value your property. These types of services including Zoopla should not be taken serious and are generally for illustration purposes only. The way the work is purely based on a set of statistics and a computer algorithm which generates a valuation for you based on a set of criteria. For instance sake, if a property 3 doors down from you sold for £100,000 and it sold in the last 3 months, the likelihood is that these types of service would value your property at £100,000. They are not very advanced in terms of valuation; they have no idea if the property 3 doors down was a 7 bed, 1 bed, or 3 bed. They also have no idea of the condition of the property. Maybe it was a lot better than your property, which means your valuation would be much lower that £100,000; or maybe is was a complete wreck, in need of demolition. The fact is that these types of services are just for a bit of fun, and not to be taken serious in anyway.
RICS Valuations A RICS valuation is the only true way of valuing your home. RICS or Royal Institute of Chartered Surveyors are an independent organisation that work on behalf of the mortgage companies, and value property for lending purposes. RICS have no reason to artificially increase or decrease a property in value, and will give an accurate representation of what your home is worth. A RICS surveyor will generally visit your home, look around it to assess its condition as well as do research into other property sales. Because an actual human is doing the work for a RICS valuation they can assess sales in your area, and know if the property that sold recently is a like for like match to yours. They will also take into account that each street is different and can have a huge impact on valuation.
This is especially important in coastal areas, whereby a property that is on the seafront can be worth up to 5 times the amount of a property situated on a street or two behind.
Cash Sale Valuations The process of selling your property for cash is very straight forward. As a general rule most cash buying companies will go off a RICS survey, and make you an offer based on what that RICS survey comes in at. For example if a RICS surveyor thinks your property is worth £100,000 then a cash buying company may offer you in the region of £70,000. WePayTheMost work slightly differently. The way this service works is that they take 3 or 4 valuations from local estate agents that know the area, and then make an offer based on those valuations. The reason being is that estate agents are less conservative with pricing that RICS, giving the customer a fairer offer for a cash sale. So if an estate agent values a property at £110,000, WePayTheMost will pay around £91,000 for fast cash in 7 days. This is great for sellers wanting to offload a property quickly, and a lot faster than the open market.
Further Useful Links: http://www.moneysavingexpert.com/mortgages/free-house-prices http://www.rightmove.co.uk/house-value.html http://www.nationwide.co.uk/about/house-price-index/house-price-calculator
Published on Apr 1, 2014