How do estate agents value a property?
Valuing property is something of an art, but as a seller, how do you know whether the valuation you’ve been given is accurate?
Choosing the right estate agent to sell your home can sometimes feel like a minefield. This week, we look at how estate agents value property and how you can make sure the valuation you are given is accurate.
Judging the value of a property is an art, not a science, says Edward Church, Head of Strutt & Parker‘s Canterbury office. “This is particularly true in specialist areas such as the country house market. You may have an idea of what price your home can achieve based on your own research, but a good estate agent will be honest about whether your estimate is realistic.”
When it comes to valuing a property, agents not only look at the size and location of your home, but also take into consideration market reports, local knowledge (including micro markets), knowledge of previous sales, the quality of the workmanship and decoration around the property along with development opportunities and any unique features. Edward says, “A selling agent should always be able to explain how they’ve come up with their valuation and give examples of what comparable properties have sold for.”
It is not always all about the numbers. It can be tempting to blindly choose the estate agent who has given you the highest valuation. After all, you want the best price for your home but attracting buyers is key. It is vital to be robust but realistic with the guide price - if a property is priced too high for the market, it won’t sell. The longer a home is on the market, the more likely buyers are to think there is something wrong with it, and the more likely you are to have to drop the price. An agent should also take into account their knowledge of active buyers in the market. At the end of the day they are the ones who have to be persuaded to pay up!
Belinda Hutchinson-Smith, Head of Strutt & Parker’s Shrewsbury office, believes the first six weeks of marketing are the golden window of opportunity. “The key to achieving a successful sale is keen and accurate pricing in order to generate viewings and interest from buyers. An overambitious valuation, although tempting, deters buyers from coming to view, prolongs a sale process and almost always results in a lower selling price.”
Of course, getting the best price for your home isn’t always your top priority. If you’ve already had an offer accepted on another property, then finding a reliable buyer who can meet your timescales may be more important.