5 Ways to Avoid Common Property Valuation Pitfalls

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Property Valuation

Property valuation allows sellers and estate agents to understand how much the property is worth, and how many potential buyers will be willing to pay for a property. If you bought a house over a decade ago, or if you inherited a house from your parents, you might know the real-time value of your home. That is where a property valuation comes into play. In fact, even if you’ve ever wondered about the current price of your home, you can always opt for a free property valuation at any given time. Speaking of which, here are 5 ways to avoid common property valuation pitfalls.

1. Always hire a professional

To know the true value of your property, you need to hire a professional property valuator. There are quite a few property evaluators in the market, but you need to hire someone who is experienced, trustworthy, and, most importantly, someone who is good at what they do. At the end of the day, when you list your property on the market, you will keep the property valuator’s figure in mind while listing the selling price. Thus, it is very important to hire a professional who will let you know the value of your property, as accurately as possible. Of course, there could be a 5 to 10 percent difference between different property valuations, as well as a slight difference between the asking price and a potential buyer’s offer, but ultimately, the value given by the property valuation should be as close to the real value as possible.

2. Get a second opinion

Every property valuator will have a slightly different valuation to offer. One valuation might price your home at £200,000 while another might quote £208,000 for your home. When you opt for a second opinion during a property valuation, this will give you a fair idea of exactly how much your property is worth. For instance, if the first property evaluator values your property at £150,000 while the second evaluator values your property at £250,000, then you need to go back and assess which property valuation is authentic.

3. Do your due research

Before you even hire a property valuator, you need to do your own research. Look at similar properties in the area as well as similar properties in similar neighborhoods around the value. Find out how much these properties have sold in the last few months to figure out the average selling price of such properties. By doing so, you will have a fair idea of how much your property is worth. For instance, if you are looking to sell a three-bedroom house with a spacious garden, look at similar homes in the area with similar features. If some homes have sold for around £220,000 while others have sold for approximately £240,000, you can easily calculate the worth of your property. This method also allows you to double-check the valuation that has been provided by the property evaluator. Also, this method will help you settle on the right asking price.

4. Ask for the right price

The valuation of your property is a pretty clear indication of how much buyers are willing to pay for your property. In essence, a property valuation is not how much a seller wants for his or her property, it is about how much buyers would be willing to pay for that property in the current market. Once you have a valuation in hand, you can analyse the data to figure out exactly how much you want the asking price to be when you list your property on the market. Keep in mind, that most buyers will negotiate a little, so don’t use the exact valuation as the asking price. However, if you price it too high, then you might not get too many offers. In a competitive market, it is very important to set the right asking price. Too high and your property might be on the market for months; too low and you might end up losing money on the deal.

5. First impressions are important

Let us remember that a property evaluator is a person who could have certain biases. First impressions can have an impact on property valuators too. Before you get your house evaluated, make sure to clean it thoroughly. Scrub every nook and corner, deep clean the house, and ensure that everything is spic and span. Also, if you have the time, you could repaint the interiors and exteriors of your property. Essentially, you’re going to clean up your home before putting it on the market, so why not do it before the property valuation?