Assessing the value of your property is one of the most difficult and important tasks of the house selling process. The valuation assessment will help you decide upon two key prices:
- The asking price
- The lower price limit - below which you will not sell
Asking just one estate agent his/her thoughts on the value of your property is simply not sufficient. A good valuation involves a lot more effort than that. Appraising the value of a property is a complex issue where many factors have to be taken into account - it is a combination of art and science. Sellers should also consult our Home Selling Guide Valuations page.
Estate Agents' Valuations
Independent property valuations are performed by chartered surveyors. It is a common misconception that Estate Agents value your property for you. Agents simply guide you to a suggested asking price - their services do NOT include the provision of objective and accurate valuations which they underwrite.
It is important for the home seller to realise that the asking price an Estate Agent recommends may be over-inflated because of their desire to win an instruction. On the other hand, Estate Agents may encourage a seller to accept a low offer in order to secure a quick sale (a high turnover of properties tends to be of most importance to agents). Since you cannot be sure of your Agent's motives, it is generally recommended that you perform an independent valuation.
It is perfectly possible for non-professionals to gain a sufficient understanding of their house value.
Unfortunately, thorough understanding of valuation theory and methodology is not commonplace. There has been little comprehensive literature available as to what constitutes value and what the different methods of determining the worth of a property are. The following article will provide some insight into theoretical approaches to value and valuation methodology.
There are two main theoretical approaches to determining the value of a house, namely the "Comparable Sales Method" and the "Income Approach". The first valuation method focuses on actual market data, whereas the second calculates the profitability of the investment. Since the two approaches complement each other, a diligent valuation will always use both.Property Help And Advice