How a Property Valuation is Calculated

When it comes to selling a property, or even just understanding what it is worth, it makes sense to bring in a local estate agent to carry out a valuation visit and give you a market value for your home. Many people wonder what the estate agent is looking for and what they take into account when determining a market value and what can be done by the homeowner to affect the valuation. In this article we will take a closer look at property valuations, what affects a property’s valuation and what a homeowner can do to maximise the valuation.

Before an estate agent even comes out to visit your property, they will ask a number of questions about the property such as:

• Does the property have off-street parking and if so what type?
• How old is the property?
• What condition is the property in?
• How many bedrooms/bathrooms/reception rooms does the property have?
• Is the property detached/semi-detached or terraced?
• Is the property freehold or leasehold
• Is there a garden?
• Have there been any upgrades such as an extension, new windows, new boiler, new electrics?

The main reason for asking all this information ahead of time is that they can then research similar properties in the local area to get a rough guide on where the asking price should be. It has to be remembered that the property will be valued in comparison to similar properties in the local area and, although every property is unique in some way, that is the starting baseline and by asking some upfront questions the estate agent can get a good feel for the valuation.

The agent will then book and appointment to come and physically view the property and this is where the guide valuation that they have becomes refined. Typically, a valuation visit can take anywhere from around 30 minutes to an hour depending on the size of the property and any unique features.

When the agent visits, they will first take a look at the “kerb appeal” of the property and take a view on what a prospective buyer will think when they first see the property. They will be looking at the street in general, the neighbouring properties, how big the house is and the overall size of the plot of land upon which it sits, the parking situation and the external condition of the property. It is fair to say that the location of the property plays perhaps one of the biggest roles in a property’s valuation. Ever heard the phrase “Location, Location, Location”? That’s because location and proximity to local amenities is key.

Once inside the agent will take a look at the layout of the property, the size of the rooms, the condition of the property, any outside space and buildings and any improvements and alterations to the property. They will specifically be looking at things like:

• Overall property condition
  • Is the property well maintained or are there doors hanging off or holes in the walls?
  • Are fixtures and fittings in good condition, is the bathroom or kitchen new or in need of modernisation?
  • Are there any signs of damp or cracks?
• Quality of fixtures and fittings
  • Is there a new/modern kitchen or bathroom?
  • What type of flooring does the property have?
  • What is the condition of the windows and doors?
• The layout of the property and key rooms
  • Does the layout make sense and how large are the rooms?
  • How many bathrooms/receptions rooms are there
  • Is there space for a home office?
  • Is there a utility room?
• Light
  • Is the property light and airy or dark?
  • Are the light fittings in good order?
• Utilities
  • What is the age and condition of the boiler?
  • Are the electrics up-to-date and in good condition?
• Upgrades/additions/unique features
  • Extensions and conversions
  • New windows or doors
  • Upgraded electrics
  • External buildings
  • Period features such as stained glass or fireplaces
• Outside
  • What size is the garden and which way does it face?
  • Is the garden mature and well maintained?

During the visit the Estate Agent is looking to see anything that either enhances or detracts from the property when compared to others in the area. Clearly something like a large extension and a brand-new kitchen will add to value to a property whereas a property with damp and peeling wallpaper will attract a lower value.

Given the scope of a valuation, a property owner will not be able to make everything look perfect for the valuation, but there are some things that can be done to get the best valuation:

• Carry out small maintenance tasks. A property with leaking taps, blown bulbs and dents or scrapes in the walls won’t look at its best and might attract a lower valuation, so get all those little jobs sorted.
• If there is time and the finances available, carry out some of the more obvious upgrades.
• Have a sort out and de-clutter to show the true space in the property.
• Do some gardening and tidy up the outside space.

Most Estate Agents will be able to give a valuation right there and then. Remember, they already have a valuation in their mind, all they are doing is seeing what the property offers to increase the valuation or what is wrong with it to reduce the valuation. It always makes sense to use an experienced local agent who will know the area and market rates for the area  well.

Lovelle are multi award-winning agents, providing first class residential sales and lettings services throughout Lincolnshire, Hull & East Riding. Established in 2006, we have grown to be one of the region’s leading agents. Our professional and dedicated teams are always here to help, and customer service is at the heart of what we do. Please feel free to contact us for any property queries or to arrange for a valuation visit and one of our local, experienced agents will be happy to help you.