There’s a fine line when it comes to property valuation between pricing too high and giving away your property at a steal. Because let’s be honest, if your home is priced wrong when it hits the open market, it can directly influence the time it takes to sell. And with the average property going under offer in 38 days or less, according to Zoopla, it’s important you get this right.
And while a property valuation company can help you in determining exactly how much you can expect to get for your home, it’s also a good idea to understand the influence of property value so you can prepare yourself for what figure you might be looking at and what you’re realistically able to list for.
Location
If you’ve ever watched one episode of Location, Location, Location, you’ll know just how much house prices differ from postcode to postcode. It’s cliché, but it’s true — where you live is just as important a factor as the property itself.
A house in a more desirable area will automatically be worth more than an identical house with a less popular postcode, even if that’s the only difference.
Another location-based aspect that is influential in determining property value is the position in relation to the sun — homes that get more sunlight or are south or south-west facing homes get more sun through the day, especially later in the afternoon, so these will also be able to command higher prices.
Type of Property
Next up is the type of property you live in — apartment, maisonette, house, terraced, end terrace, semi, detached. All play a part in how much people are willing to pay and what the top amount is that you can ask. Even the property being modern or period comes into the equation, too. The extent to which it will influence prices depends on the areas and demand. For example, families will be looking more for houses, so if you have a house in desirable areas, that might instantly be worth more.
Condition
Now we’re getting into it. Two homes could be exactly like next door to each other, one is in great condition, it’s been modernised, period features preserved and integrated into the design, and one hasn’t had any major work or a whole and is somewhat run down. Do you think they’re going to sell for the same price? Not a chance.
If potential buyers see it needs a considerable amount of work, you can expect them to want to pay all to less to account for this, while a turnkey property will instantly command a higher price due to it being move-in ready.
Energy efficiency also plays a part in the condition, too — homes that are more energy efficient will be more attractive to buyers.
Size
Common sense suggests that bigger properties are going to ask for higher prices. While small one-bed apartments in a modern complex in a desirable location can indeed command a higher price for sale, a house in the exact same area will always be worth considerably more. It’s the same across the country – the more bedrooms and bathrooms you have, the more the price trends upwards.
