Are you hoping to put your home on the market this year? Having a clear grasp of what your property is worth will help you identify a suitable selling price and how much you can afford to put towards a new house.
Predicting the value based on how much you paid is unlikely to be accurate, even taking into account inflation. The UK property market is strong with prices typically rising faster than inflation year on year, with the exact percentage varying significantly from region to region.
Explore the basics of property valuations in this handy guide to discover how to accurately price your home and what you can do to increase the value before selling.
Factors influencing property value
Several factors play a crucial role in determining the value of a property.
Location is the most significant factor. This ranges from the wider region to neighbourhood safety and accessibility to schools, amenities, and public transport. Property features are also important: the size and number of bedrooms and bathrooms make the biggest difference, but additional benefits such as a garden and off-street parking can add considerable value too.
The condition and age of the property also matter. Well-maintained or recently renovated properties typically hold higher values, and buyers are willing to pay more for homes with a low EPC rating garnered by excellent insulation and efficient heating systems.
General market conditions and broader economic challenges can influence property values too, but these are outside your control.
How value is calculated
Various methods are employed to ascertain an accurate property valuation. Comparative Market Analysis (CMA) analyses recent sales of similar properties in the same area to estimate a property’s value. These systems also use algorithms to track online interest in houses in different areas to establish the most popular places to live and adjust value estimates accordingly.
Property valuations can be done in person as well, with a certified appraiser in your area. They can provide advice based on their expertise and recent trends in the local market.
How can I find out what my home is worth?
Homeowners have several options to determine their property’s current value. Online valuation tools are most convenient, offering instant insights based on extensive market data.
However, these insights are limited to the location, property features and general market trends. A physical assessment is more accurate as it also includes the condition of your home and unique features attractive to certain buyers such as historical features. You can book a free valuation of your home with a reputable real estate firm to determine a precise price.
Enhancing the value of your home
Maximising your property’s value can be costly, but the investment usually pays off. Modernising key areas like kitchens and bathrooms and overhauling your heating system with a focus on sustainability can make your home much more attractive to buyers.
Simple changes such as tidying the garden, repainting rooms, and cleaning the exterior for enhanced curb appeal create a strong first impression, supporting the property price.
