The demand for green homes is rising, but it can still be hard to figure out what they are worth. When you’re about to sell property, it’s important to have a few different home valuations carried out before your property is put on the market. This is especially true for sustainable homes.
Why? Because you need to be sure you’re getting the best and most accurate price available for your home. It’s important to have a minimum of 3 different home valuations conducted before you sell a green property – by three different estate agents.
Getting an accurate price for your property is crucial, as overpricing will make it hard to sell your property. On the flipside, if your home is under-priced, you’re effectively throwing money down the drain. That’s why you need to ensure that your house is sold for the right price, before it goes on the market.
We’ve teamed up with leading estate agents Essex Countryside, to get all the information on home valuations. In this article, we’ll be detailing how your property is valued by estate agents. Including everything they look at and why your house would be over priced by some estate agents. This is how a home valuation is conducted on your home.
Why over price a property?
You may be asking yourself, why an agent would overvalue your home. It’s something that can happen if you’re not careful, and its why even expert agents recommend you get multiple valuations carried out. Some sneaky estate agents have been known to overvalue a house, just to get you to sign up and sell your property with them.
Most estate agents’ profits come from selling property, so while them selling a house to buyers is great, having a seller come and use them is ideal. This is especially common with green homes, since they tend to be priced higher.
After overvaluing your home, knowing that the house won’t sell at that price, your house will be left on the market. Then, your estate agent will suggest you lower your asking price, in order for the home to sell. You’re most likely to accept, after the frustration of not having your home sold yet. So, they entice you by saying they’ll get you a higher price and when it doesn’t sell, you lower the price to one that better meets the true value of your home. The estate agents have you on side and you’re none the wiser. So, it’s important to look out for these kind of estate agents and always get 2 or 3 valuations on your home.
Home Valuation Factors
Below are the different factors that make up the price of your property.
1. The Property
The first will be the size and condition of your property. It may seem obvious, but the bigger your property, the higher price it will fetch on the housing market. The number of bedrooms and bathrooms factor into the price, while the overall size of each room, the garden and space available affects a property’s price too. House prices are also affected by the type of property too. If it’s a flat, terrace, semidetached or detached house, then you can sell it for a higher price as well.
The overall condition of the property makes up the estimated value of a home. Properties that look ‘run down’ may not fetch a price that meets the value of the home. It’s all about road-side appeal for potential buyers, and the house’s appearance needs to match the price you’re asking for.
2. Location and Area
Geographical location also affects a green house’s price. For one thing, there is a higher demand for green properties in some areas than others.
North or South, in the city or in the countryside, where your house is located impacts the value of your home. A house’s price can be driven up if it’s in a local area for a good school or near transport links too. The more popular an area is, the higher priced houses it may have. However, areas with a higher crime rate will have lower priced properties too. Natural factors, like areas prone to flooding or with high levels of air pollution, can decrease the home value because of the potential risk of damage to a property.
3. The Housing Market
The current housing market affects the price that your property will sell for. It’s all about finding the right time to buy or sell, as well as having your pulse on the economy. If there’s a high rate of unemployment your house may be less likely to sell, and therefore, you won’t be able to ask for the same price as you would when the economy is better. Estate agents will pull old files and records of similar houses to yours to see what kind of price your property can fetch on the market.
The factors listed above are how an estate agent will value your home when you sell property. Whilst some of these factors are set in stone, there are ways to increase the value of your home – sometimes, selling at the ‘right’ time can help your home sell for more. The size of your property is probably the determining factor to set the price of your home, and whilst the others may affect it, it’s the basis of what your home is valued at.