Getting an accurate property valuation is one of the most crucial first steps when selling your home.
It allows you to set the most competitive price, increase the offers you receive, sell your home faster and gain maximum return on your investment.
Many factors can influence how much your property is worth, including location, age, condition, market trends and even wider global economic factors. By gaining insight into these factors, you can make smarter decisions that enhance your property’s appeal and help you negotiate more effectively with potential buyers.
In this article, we’ll explore what a home valuation is and why it’s so important, then break down the key factors that will influence your home’s value.
What is a property valuation?
A property valuation is a professional estimate of the value of your home. It’s essential for securing a mortgage, determining your tax obligations, setting a fair market price for buying and selling and much more.
Usually carried out in person by a professional property valuer or estate agent, your home valuation will be based on several factors. This includes the physical condition of the property, its location and size, the local property market and global economic factors.
The property valuation process isn’t about a quick guess but a comprehensive process whereby the valuer visits the property, takes notes and photographs, and then creates a detailed valuation report.
Why is it important to get an accurate property valuation?
Accurate property valuations are vital for both sellers and buyers.
Sellers rely on home valuations to set appropriate asking prices. If overpriced, their home could sit on the market for a long time, waiting for a buyer. On the other hand, underpricing a property can cause them to lose money.
At Cobb Farr, we have an in-depth understanding of the local property market so we are well-placed to provide you with insight into the value of your property and what will and what won’t make a significant difference to your home’s value, especially if you are looking to do renovations or add an extension.
We have a modern approach to valuations that are underpinned by our traditional values of honesty, transparency and market understanding. This enables us to provide our clients with a comprehensive valuation that presents a completely accurate view of what their property is worth in today’s market.
For buyers, accurate home valuations help secure financing and ensure that they are paying a fair price for the property.
Mortgage lenders will also carry out their own valuation, and if they notice discrepancies between the professional home valuation and their own, there may be problems with the approval of the mortgage loan.
What factors affect your property valuation?
To reiterate, several factors can affect the value of your home, including location, size, market trends and economic conditions. Let’s look at these more closely so you can make more informed decisions when buying or selling your home.
Location
The famous saying “Location, location, location” is especially true in the property world. More desirable areas usually attract higher prices and vice versa.
With its rich history, stunning location and vibrant cultural life, Bath is one of the most sought-after cities in the region, while Bradford on Avon is peaceful and rural yet close to major towns and cities. Overall, this means that property valuations in the locations are higher than elsewhere in the country.
Of course, the local neighbourhood also makes a significant difference to the value of your home. If your property is close to local amenities, transport links, schools, parks and leisure centres, your home valuation is likely to be higher.
Property size and layout
The valuation of your property will also take into consideration the size of your property and its layout. Overall, larger homes with more bedrooms, bathrooms, and living spaces tend to be valued more highly than more compact spaces.
But it’s not only about square footage – the layout and quality of the space also matter. If you have an open-plan living area, modern kitchen, and well-designed floor plan, your property may be more desirable, as these features enhance liveability.
Of course, outdoor spaces like gardens, patios and even balconies also add to the value of your property.
If you’re planning to renovate or add an extension, then it’s important that you understand how this will add value. This is an area where we can advise.
Condition of the property
The physical condition of your home will also play a crucial factor in your property valuation.
If it is well maintained, up-to-date and with little renovation or repairs needed, you will likely receive a higher home valuation than if it needs significant repairs or renovations (especially if they are expensive or extensive).
Properties with a freshly painted exterior, modern kitchen and bathroom, well-maintained roofing and those that are ready to move in tend to attract the greatest interest, selling price and sell faster.
Age and style of the property
Bath and Bradford on Avon boast a wealth of well-cared-for, older properties, often with historical significance. These are highly sought after and valued more highly than newer properties. However, if they need modernisation or restoration, this can reduce their valuation.
On the other hand, newer homes and properties built to modern standards can also command higher asking prices, especially if they boast energy-efficient features, modern layouts, and new or updated materials.
Market trends
Local housing market supply and demand can heavily affect your property value. In Bath and Bradford on Avon, the demand is high, which tends to push property valuations higher. In contrast, in areas where the demand is low, prices can decrease.
The UK property market and trends can also have an impact. If there are property booms, home valuations tend to increase, whereas downturns can have the opposite effect.
At Cobb Farr, we have experienced buoyant markets and navigated our way through market slumps, so we can provide you with insights into how the market is currently performing. ensuring that you are well prepared.
Staying up to date about local and national market trends can provide you with valuable insight when selling your home.
External factors and the economy
It’s also important to mention that the broader economy, both national and global, plays a key role in the valuation of your home. Economic factors like inflation, the cost of living, interest rates and employment levels all affect how much people are willing to pay for a home.
For example, when interest rates are low, buyers are willing to pay more to buy a home. Whereas, when employment is low or inflation is soaring, people prefer to pay less or wait until conditions improve.
Key tips for the property valuation process
Getting a home valuation is usually a straightforward process when you choose a trusted professional valuer like Cobb Farr. Here are a few tips to further simplify the process:
- Gather documentation: Ensure you have relevant documentation to hand so you can provide valuation professionals with a comprehensive view of your home and its potential. This includes the property deed, previous sale price and information about recent improvements or repairs.
- Research the market. Find out about local trends and recent sales in the area to understand the current market dynamics. If you need more information, ask one of our friendly team members at Cobb Farr.
- Be open to feedback. Your professional valuation expert will provide you with feedback on how to enhance the appeal of your home. Ask for their insights and be willing to implement them to improve your chances of a higher valuation.
- Follow up. If you receive a lower property valuation than you expected, get in touch and ask questions. By doing so, you can understand why this happened and could make improvements to potentially increase the value of your home.
Summary
Whether you’re buying or selling a home, getting an accurate property valuation and understanding how it works is essential. It reassures potential buyers that you are asking a fair price while helping you gain excellent returns on your investment.
Factors such as location, neighbourhood, age, condition and size of your property, local market trends and broader economic trends all play a role in your home valuation.
Here at Cobb Farr, we offer professional property valuations to help navigate these complexities, make informed decisions and sell your home for what it is worth.
It’s not uncommon for sellers to call in a number of estate agents when obtaining a valuation for their home. In a UNESCO location such as Bath, where for sale boards are prohibited, we have earned our reputation not by ubiquitous sales boards, but by our knowledge, traditional approach and the additional value that we add to the entire valuation and sales process.
Contact us today to book your professional property valuation.
