Property Valuations – Understanding Their Purpose & The Process

When you have a valuation with an estate agent, our role is to provide you with an accurate value of your property.

Discussing your property value can feel like a big moment. Whether you’re happy with the result or surprised by the valuation, understanding the key components of how an agent reached the valuation figure will help you make informed decisions about selling your home.

This valuation is an assessment of your property’s value, based on the location, condition and multiple other factors.

Selecting the right estate agent to undertake the property valuation is extremely important. In the Bolton area the most appealing agents will be a Bolton estate agent, as opposed to an agent based in a different town or based online only. Whilst any agent can value a property using online comparable information only, only a Bolton estate agent will be able to attend your property and have the time and local market knowledge to sit with you and discuss the best way forward to sell your house.

Process

• An estate agent will visit your property and inspect both the interior and exterior.
• The agent will ask question about the property.
• The agent will consider the property’s location, size and the local property market.

Most Common Reasons for a Property Valuation

• Selling: An estate agent will use a valuation to help homeowners decide on an asking price for their property.
• Probate: A valuation of a property will also be required to determine the value of a deceased person’s estate.
• Family Matters: A valuation may be required as part of a process regarding the start or end of a relationship, or for inheritance purposes.
• Re-mortgaging.

What is an Agent Looking For?

• Condition of the property: The condition of the property, including the roof, windows, flooring, double glazing etc.

• Extensions: Any extensions or changes to the property and the quality of the work.

• Location: Where the property is located and how sought after that area is.

• Kerb Appeal: How the property looks from a buyer’s perspective. Such as the presentation of the front garden, pathways, fences and windows etc

• Local property market: The agent will review comparable properties in the same area, including recent sales prices and how in demand these properties were.

• Recent improvements and unique selling points: Recent work on the property, such as a new kitchen or bathroom or whether the property has a larger garden compared to similar properties.

• Potential: The potential for adding value to the property, such as by adding a new extension or loft.

If the value of the property is what you were expecting, or in some cases even higher, then that is great news.

However, it may be the case that your property valuation is lower than you expected it to be and we understand how disappointing this can be.

The main reasons that will down value a property are:

1. Poor workmanship – doing maintenance jobs ‘on the cheap’ very often backfires. It is really important to know where you should spend money and where you can save money. With major renovation / construction work, you get what you pay for and if the work is poor, it will soon show. In addition, issues such as poor plasterwork or badly fitted kitchen units – usually a result of DIY work, will give a potential buyer reason to try and negotiate a lower price sale.

2. An increase in crime levels – it is really easy for a buyer to check the crime statistics in the area they are looking to buy and even a quick Google search is all that is required these days. If crime levels are high or have increased, this may work against you when it comes to selling your property. Whist there is nothing you can do about this, you can try to compensate by making the property more secure.

3. A substandard kitchen – An impressive kitchen will usually help to sell a house, but a second-rate, shoddy-looking kitchen will not help you sell it. The kitchen is the ‘heart of the home’, as we’re so often told. A kitchen is the most expensive room to have redesigned and refitted, which is why a potential buyer may be put off if they realise they’ll have to do a lot of work on the kitchen.

4. Noise pollution – If you live in a noisy area then consider if this would put a buyer of purchasing. Can the buyer reconcile themselves to the noise? Installing double glazing can go some way to keeping the noise out, but you’ll still be aware that you’re living in a busy area where ambulance sirens, police sirens, car horns, buses, and pavement chatter are a permanent fixture, with each seemingly trying to drown out the other. If the property is on a main road or the area is a busy one, you can’t do much other than investing in some form of sound-proofing.

5. Not efficient enough – It’s not only renters who want to see energy efficient properties, buyers will also want to save as much money as they can on their energy bills. Energy performance has become increasingly important, so if your home needs an energy efficiency boost, take steps to make it happen.
As of April 2018, it is illegal for landlords to rent a property to new or renewal tenants if that property has an Energy Performance Certificate rating of less than E. This won’t immediately impact someone looking to buy a home, but it will affect things if you plan at any time to let the property to tenants. Generally, buyers will find an energy efficient property appealing, while an inefficient rating will likely devalue the property.

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