What is a Home Valuation?

If you’re wondering what a home valuation is, what it checks for and what it involves, you’re in the right place.

When it comes to selling your house, you’ll probably end up undergoing a home valuation or another valuation of some sorts. You’ll open your home to your estate agent, and they’ll come and poke around to see what your house is actually worth. But how do they figure it out? What makes a house worth more or less? We’ve spoken to Mortgages.Online, an online mortgage broker expert, about what you should expect when your home is being valued.

In this post, we’ll be looking into all things to do with home valuations. We’ll look into what they are, how they work and what estate agents check for. You’ll learn all the tips and tricks estate agents use to judge a property’s worth, so you can make sure your house is ready for selling and you fetch the best price possible. Learn all about home valuations below!

What is a Home Valuation?

Like we’ve said, a home valuation is carried out by estate agents to, well, determine the value of your home. It’s fairly self-explanatory, but when your house is about to go on the market, the price needs to be determined in order for it to be listed fairly. Too high and your house may not sell. Too low, and you’ll be missing out on some cash! So, it’s important to receive a fair and impartial home valuation from an estate agent.

Be wary, some sneaky estate agents (some, not all!) use a tactic to get you to sign on. They over value your home in order to pull you in. By giving you a higher price than your home is worth, it may convince you to list your home with them. After months of your property not selling, they may ask you to drop your asking price. It’s sneaky, but some estate agents have been known to do it. So, when it comes to having your house valued, you need to get a second and third opinion.

What Estate Agents check for

So, when you invite an estate agent into your home, what are they going to look for? First of all, it’s important to note that a home valuation is not legally binding – you don’t have to sell your home for the price they suggest. Sure, estate agents can give you their professional opinion, but by no means does it mean they’re right (another reason why 2nd and 3rd opinions are crucial).

They’ll judge your home on a few key factors:

  • The Size

The bigger your house, the more it will sell for – obviously. Houses with more bedrooms and other features like large gardens, a gym, a pool, an office, etc. will sell for more because there’s more to the property. Simple enough.

  • The Location

As the estate agent will have knowledge of the local area, they’ll be clued up one which parts are more desirable (e.g. where houses sell for the best). If your home is in a derisible area, near public transport or/and a good school, the estimated value for your property can go up. If you’re in an area with a high crime rate or high levels of pollution however, the price may fall. It’s all about the area.

  • The Aesthetics

How your house looks can seriously affect the price of your property. Road side appeal and interior decoration can make or break a house’s sale. Estate agents will judge you on how good your home looks from the outside (is the garden tidy and is the house paint newish?) and even how it looks on the inside (is all the paintwork done etc.). Make sure your house is in pristine shape when you invite your estate agent round for a home valuation.

  • The Condition

As well as your property’s look, they’ll also judge your home on the condition it’s in. This won’t be as in-depth as a surveyor’s evaluation, but they may look for signs of structural damage or any potential issues you should definitely fix before the property goes on the market.

  • The Housing Market & Economy

Buyer confidence, the current state of the housing market and the economy can all factor in to how much you could sell your house for. If the time isn’t right, you may not be able to get the price you desire on your home.

From all of these, your estate agent will give you a rough estimate of the price they think your property should go on the market at. However, like we said, it’s key to get more than one opinion. Alternatively, you could research yourself! Look at what other similar sized houses in your area are priced at. Think about how much you bought the house for, and how long ago, this can help you set a rough estimate. Have you expanded or done work? If so, then the price of your house may have gone up!

Remember, when undergoing a home evaluation nothing is set in stone – an estate agent’s word isn’t legally binding. You should do the research and factor in everything mentioned above in order to place the price of your house correctly.