Valuing a property

Everyone loves getting a good deal, but most people value the property they're selling too highly, and the one they're buying too low. You need to make your expectations realistic – at the end of the day, a property is only worth what a ‘proceed-able’ buyer is willing to offer and what a seller is willing to accept.

If you're selling your property and haven’t had any viewings or offers after eight weeks, your asking price may be too high, so re-check the local market.

Six steps to valuing a property

Use these handy hints to figure out how much your property – or one you’d like to buy – is worth.

Look in local newspapers, estate agents’ windows and online to find similar properties sold recently, and how much they have sold for. Try to come up with three to five properties that are comparable in size and features such as double glazing, number of bathrooms, garage and garden.

Drive by these properties and note any differences such as external appearance, age, type (semi or detached) and condition. Consider what other reasons may have affected the sale price: Is it on a really popular road? Is it more modern than other houses in the area? Does it have a conservatory?

Compare the floor space of each property versus the price to see which one gives the best value for money.
Ask the agent how many viewings and weeks the property took to sell.

If it’s your home you want to value, the next step you should take is to bring in three agents who have recently sold similar properties and ask them for a valuation. If you are a buyer, visit other agents and ask how realistic the asking price is – you’ll be surprised how helpful they can be.

Once an offer has been made, take into consideration the price that an independent surveyor and mortgage lender puts on the property – their price is based on statistical evidence, and free of any emotional attachment to the property.

Tips for sellers

As a seller, you must consider the minimum and maximum prices that you can accept for your property. What’s the lowest offer you can accept and still afford to move to the property you want?

Be realistic, but don’t forget that whatever discount you give on your own house you may be able to recoup with a similar discount on the one you’re buying. The maximum price you expect should equal the top price recently achieved for a similar property in your area.

Tips for buyers

As a buyer, it’s important to consider how long you intend to stay in the property. If you don’t plan to own the place for long, the value may not increase or might even fall, so it’s even more important to get a good deal in the first place, as your short-term investment is more volatile.

On the other hand, the longer you stay, the more the value of the property is likely to go up, so if it’s your dream property and you intend to be there for 10 years or more, it may be worth increasing your offer to secure it.