Fundamentals of Property Valuation: Factors that Determine the Value of your Property

Property valuation is a crucial stage in the sale of your property. That is, your home is an investment that you would not want to throw away when you want to offload it on the property market. Thus, you need to establish your properties value in order to not only set a realistic asking price but also be able to negotiate the selling price better with prospective buyers. In addition, valuation allows you to have an understanding of the state of the local market as well as give you a head start on how you can maximize the value of your home.

Although the only valuation that is recognizable by mortgage lenders is one that is carried out by a RICS registered valuer, estate agents can also conduct valuation for your property even though their estimates may not be a true reflection of how much your house is worth. The criteria used to determine the value of your property is diverse. It takes into account the age of the property, size, wear and tear as well as the size and room layout and other fittings in your house.

The importance of location to property valuation

For any property valuation to be considered as being fair, a comparison must be drawn between your house and the other houses within the area. Generally, the estimated value needs to fall in the range of the sold prices of other property in your location. This is because the price is usually determined by the demand of property in the area, the degree to which the area is desirable and the proximity to social amenities that are likely to boost the value of your home. The Land Registry is a great source of this kind of data as it is a government service that offers access to sold house prices across different streets.

What to Expect from the Valuation of your Property

Generally, the valuations conducted by estate agents may be used to dictate the market price of your property. Even then, you will do well to ensure that you get three valuations from three independent estate agents.

In addition, ensure that you prepare adequately for the valuation by ensuring the property is tidy, clean and free of clutter. This is because the valuer will usually record detailed notes on the state of the rooms while paying attention to the specific feature. You could also consider home improvement projects ahead of the valuation.

Ultimately, property valuation marks the beginning of the journey of selling your property hence must be done with a lot of keenness. Where possible, be sure to get a professional valuer especially if it will add value to the sale process.

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