How Much is My House Worth?
You maybe thinking ‘how much is my house worth?’ and don’t want resort to agent valuations and be under their radar. This blog with help you identify factors and features to help you make your own property valuation.
First of all, the first few questions that need simple answering are, how many bedrooms is it, where is it, and what did similar houses fetch in the last 6 months not forgetting what similar properties are going for within a 1 mile radius. If you start off by overpricing the property then you have quite a wait. Room for negotiation should be considered as you do not want to lose a genuine buyer who has their mortgage in place to not even book a viewing.
Once these few have been satisfied, we then start adding other factors which the most important one would be is “acting like a buyer”. Schools, shops, parks, transport links are important reasons why your home would be in demand but crime stats has been pushing its position up on the list of reasons that influence a sale.
Other important factors ton bear in mind are
If your house is in a cul-de-sac, due their constraint on traffic and implied safety for children, are usually in higher demand than houses on more frequently used roadways so you would get much more than the house on a busy road.
As much as the above mentioned reasons play a big part in a sale, we also must consider the state of the property, basically how much of an expense are you leaving the new owner to spend on upgrading? Improvements you have made to the property will definitely raise the value, particularly if you have done them to a high-spec standard. We’re not talking about gyms or swimming pools, but just simple details by keeping period features. Providing the features are in good condition, buyers are prepared to pay that bit more for things such as sash windows or original fireplaces – or even thatched roofs.
Potential of increasing the property with extensions to add another reception or larger kitchen and dining area and even adding that extra bedroom into the loft with an en suite are all in range if planning permission has been granted to the neighbours. Chances are your property has it in the bag and this will increase your house being sold for the asking price.
The Crossrail project, a new shopping centre and new developers moving in are going to create bidding war for your home, regardless of where it is. The Waitrose effect is the latest indicator for certain buyers who determine how affluent a particular area is going to be.
Most recently the government has made it necessary for Energy Performance Certificates to be provided to all buyers. It is important to know you’re not going to spend over £3000 for your energy bills. And solar panels will be an added benefit, however the lease on the roof would have been sold, stopping you from carrying out any loft conversions. Please bear that in mind.
So how much do you think your house is worth without the majority of the above? Start by just checking bottom rock prices and then working your way up with all the extras and potentials your property has as mentioned. Once you get a fairer understanding, you then have the upper hand when marketing your property. Just a well looked after garden can add £10-15,000 to a property. Downstairs, toilet a shower even, pantry, a cloakroom and similar small features that add a little more, meaning the more there is for other potentials the higher you can expect than the comparable within 1 mile of your home to be.
The end user has one price in their minds but an investor has a different price. Divide the annual rent the property can achieve by the selling price and the figure is the gross yield the property will earn its owner. Ideally a good yield would be between 5-6.5%, which compared to a savings account is pretty good. Investors will want to maximise their returns and if they can see the potentials (as discussed earlier) they will also enter a bidding war. But with recent stamp duty hikes and Income tax being phased in stage by stage, investors are getting shy from the market of rentals, for the time being, well at least when the government thinks it’s time. So it may be best to assume it’s a sellers’ market as it definitely doesn’t seem to be a buyer’s market for the current time ahead.
Brexit is adding one mind boggling uncertainty for the housing market, large international organisations have been indicating that they will be moving their HQ’s to other European cities and on the other hand our politicians are not showing any progress towards a 2019 exit, which begs the question if Brexit doesn’t’ end up happening what next for house prices in 2019? To counter any possible Brexit effects, the slowdown in the housing market came may have come at a good time, first time buyers can continue saving to finally get that deposit while house prices can effectively correct itself whilst investors will be possibly be looking to offload some stock as the rental income tax will chip away at yields and the focus turned to semi-commercial properties.
Above all you need to consider, what your property would be worth to another, remember a property stock is worth as much as someone wants to pay for it. The market is an indicator of what that index threshold is, not a guarantee what you will get for a sale.
If you want more confidence to answering your question ‘how much is my house worth’ we are happy to give you a no obligation valuation .
