Steps to Getting an Accurate Valuation
Property valuation is crucial as it serves as a guide for determining your property’s asking price as well as the selling price. Therefore, it is the ideal place to begin your quest to sell your house. Even then, property valuation reports are bound to vary depending on the party that is undertaking them.
Generally, the law only recognizes the valuation that is done by surveyors that re recognized by RICS. However, estate agents too conduct valuations even though financial institutions may not accept their report.
Before commissioning a professional surveyor or an estate agent to do a valuation of your property, you will do well to familiarize yourself with the four main steps to an accurate property valuation that are as follows:
- Look up the sold prices within your area – When valuing your property, it is important to look at the prices of property that is similar to yours that has sold recently. This gives you a glimpse into the expected value of your house even though it may not be the same.
The best place to obtain this information is the Land registry where you can obtain information of completed transactions that allows you to see the sale prices as opposed to the asking prices.
- Obtain a price report – You can access price reports online with the click of the mouse. These reports will not only give you a report on the valuation of your home but also the trends and prices of other properties within your area. Unfortunately, while this report gives information on trends and prices it does not give you a valuation report.
- Watch out for competition – It is advisable to look at the kind of competition that you will have to face when you eventually put your property up for sale. That is, take time to look at the properties that are listed for sale and appear to be similar to yours are located within the same locality.
Remember, competition may determine how fast and at what price you can sell your property. The good thing about knowing your competition is that it give you room to make comparisons that are objective while helping you to decide whether you should review your asking price.
- Compare a range of valuations – Although many people go to estate agents to get their valuation most probably because it is free, you need to keep in mind that this is just an estimate. As such, you need to get an official valuation from a qualified property surveyor.
This is not to say that you cannot get an estate agent to give you a valuation. Rather, you will have to ask at least three estate agents to give you their independent valuations from which you can draw a comparison. This also gives you an opportunity to ask questions that will give you a picture of the property market. Ultimately, take everything with a pinch of salt.
Once you have successfully gone through these four steps, you may then come up your minimum price as well as ideal price because you have a good idea of how much your property is worth. This is important as it prepares you for negotiations, as you will have emotional control over the negotiation process, set an asking price that will cushion you and give adequate room for negotiation. Ultimately, property valuation needs to be done property as it is will determine whether you will sell your property for a profit or a loss. If need be, do not hesitate to bring in a professional surveyor to carry out the valuation.