In the last decade, the average property price in the UK has increased. But how do we arrive at these house values? Demand pushes the market forward, but estate agents are the ones who set a sales price for our homes, which is often referred to as a ‘valuation’. But what happens at an estate agent valuation? Lets take a look.
How does an estate agent value my property?
Although often referred to as an estate agent valuation what an estate agent is gauging is a sale or asking price, to advertise your home for sale.
When an estate agent estimates a sales valuation, they use a mix of available data. As well as their own experience and knowledge of the local housing market. They’ll consider factors such as the type of property, number of bedrooms, proximity to transport, local area amenities, the location. And what similar properties have sold for recently in the local area.
The use of data for similar sold properties is referred to as comparable sales data. They also factor in the nuances of your property. This may include the central heating system’s age, standout features and the general quality of the home. For example; has it recently been refurbished, does it need work, and has it been extended.
Once they have all the necessary information. They’ll advice you how much they believe your home is worth and suggest a sales price to list it on the property market. At this point, you decide if you’d like to instruct the agent to sell your home.
Choosing an estate agent can feel daunting as this is your most valuable asset. You want to ensure you instruct the right estate agent to sell it for you. Next to this, you also want to feel comfortable with setting the right asking price. It’s important to ask yourself if they are qualified. If you like them and if you feel you can you work with them?
Do estate agents charge for an estate agent valuation?
Estate agents don’t charge to value your home. If you decide to instruct them to sell the property, they will take a percentage of the sale price. That means there’s no commitment from your side when an estate agent performs an estate agent valuation (property valuation) on your home, and you don’t need to pay anything upfront.
How long does an estate agent’s sales valuation take?
There’s no set time for how long it takes an estate agent to consider your home’s value, but the process begins before they step through your front door.
First, they’ll perform the necessary research and look at important property data, such as previously sold house prices in the area. Then they’ll visit your home to view the property, look at its condition and discuss your selling requirements before providing their estimated sale price.
The walkthrough can take between 15 minutes and an hour and offers the chance for you to ask plenty of questions about how the estate agent plans to sell the property. The agent then provides you with a valuation they believe the home can achieve on the sales market.
Instructing an agent who is a member of a professional organisation like Propertymark means you will be represented by someone who regulated over and above what the current law demands, is qualified, and offers protection.
A safe pair of hands throughout the entire process is essential not to mention reassuring.
What should I do before a house valuation?
A property valuation isn’t like a viewing with a potential buyer. There isn’t anything you need to do other than make your home ‘sale ready’. If it isn’t quite to that stage then a good agent will advice you on what you could and should do to help progress your sale.
Its worth doing your own search on the agents in your area. Choose at least three to come and look at your and estimate a sales price for you.
This way, you can get a good feel for the actual value of your property and see which agent gives you the most confidence regarding their ability to sell the home at a good price.
Top five tips sellers should be aware of
The last few years have been a great time to be a seller. The market is slowly changing, however. Rising interest rates have led to more expensive mortgages, with many analysts predicting a slowing property market. Therefore, sellers need to understand the mindset of today’s homebuyers and look at the overall housing market landscape.
1. Homebuyers have more choice
Today’s high home prices and increasing interest rates mean some buyers are close to being priced out of the market. With declining prices and more properties for sale, buyers, still in the market for a property, suddenly have more choices than before as supply starts to catch up with demand. Multiple offers could be a thing of the past, as most buyers will want to negotiate.
2. The market has changed
Today’s buyers have unparalleled access to property data through portals. They’re more educated than before and unwilling to pay more than market value. No matter how lovely any given home might be.
Buyers also know there is a strong possibility that prices may be lowered the longer a home is on the market. Consequently, many are choosing to stay away from overpriced houses, which has resulted in some properties staying on the market for long periods.
3. Desire for move-in ready homes
The recent increase in popularity of new build homes suggests a large proportion of homebuyers are looking for move-in ready homes. So getting your house sales ready is really important and shouldn’t be overlooked.
4. Realistic pricing is essential
With interest rates increasing, lenders are tightening their mortgage criteria to ensure they lend to people who can afford the repayments. Beyond that, they want to ensure house prices meet their real-time values and aren’t inflated.
To do this, they are spending more time verifying the asking price to ensure it does not exceed current market values. If the price is too high, the lender won’t lend, and a buyer loses out.
5. Cash buyers
Cash buyers are looking for the best returns. But cash isn’t much of an incentive in a supercharged market. Well-heeled buyers are instead out shopping for bargains with the aim of finding a good property deal that gives them value for money.
What does this mean for you asking price valuation?
The more you tune into your local property market, the better your understanding of local house price values will be. It allows for a conversation with the estate agent to determine the best price to list the property on the market. While it’s natural to hope for the highest price possible. You’ll need to factor in market conditions for a realistic sale price. A good, experienced estate agent certainly will.
Estate agents and sales valuations
The length of time it takes for an estate agent to perform their estate agent valuation isn’t as important as getting it right. As the market evolves, the best estate agents move with it and give you helpful advice to ensure your property lists for a competitive yet realistic price that will get you the best conditions for a sale.
Find your local Propertymark protected agent to help you through the process and sell your home.
Last Updated: November 22nd, 2023