Your home is your largest financial asset, so it's vital to have a good idea of its value. This is especially important if you're thinking of moving or selling in the near future, because any equity you have will dictate the potential of your future home.
In this guide article, we will look at two ways you can calculate the value of your house, as well as other important values attached to property.
There are two ways you can find the value of your house:
1. Use a house price calculator to get an online valuation report
If you're looking for a basic estimate, there are several online home valuation tools available. These tools are less reliable than in-person valuations.
For a close estimate, we recommend our own GetAgent Valuation Tool. It's free, fast and as accurate a calculator you'll find online.
2. Get an estate agent to visit your home and provide a valuation report
Part of an estate agent's service and expertise is providing accurate valuation reports. A valuation report from an estate agent is much more reliable than an online tool.
You can read more about the importance of estate agents here in our guide article, 'Do I need an estate agent?'.
There are several internal factors that affect the value of your house:
The value of your house is also dictated by several external factors:
Yes you can value a house online. There are many sites with free valuation tools available. It usually takes only five minutes to enter relevant data about your property and receive a report via email. We have our own Online Valuation Tool you can use for free too.
Online valuation tools vary in accuracy and effectiveness because most of them use mathematic algorithms to make estimates. While many can achieve a good field estimate, their accuracy is limited.
Property value is more complex than an equation, and there is nothing more effective than a valuation from a trusted estate agent. Their expertise allows them to pick up on the little things that make your house a home. Many local estate agents carry out house valuations for free too.
For an online valuation, you are usually required to enter some basic data about your property. This information is then used in conjunction with data from the Land Registry to generate a value estimate.
For example, our GetAgent Valuation Tool requires:
As well as information about:
Choosing the best house price calculator or valuation tool is difficult because many of them use the same algorithms to calculate an estimate. However, we think our own house price calculator is the best because it has a solid edge over most - here's how:
Yopa's property valuation tool is a favourite among many homesellers. It uses past sold prices of the property, local market data, regional information and the number of bedrooms to provide an estimate. What makes our Online Valuation Tool more reliable, is we don't stop at bedrooms. We provide a better service by requesting more details about your property to provide a stronger estimate.
Zoopla's house price estimates use past sold prices, local market data and regional information to provide an estimated value. However, as we have explained in the past, Zoopla's estimates are not always accurate. The number of rooms your property has is fixed and you can't add extra rooms and extensions. Our tool allows you to input changes to your property to provide a better estimate.
The best way to get an accurate valuation of your house is by booking a valuation with an estate agent. During a property valuation, an estate agent will visit your property and make note of your property's features. They will also draw comparisons between your property and similar properties in the area. After their visit (usually an hour) estate agents provide a valuation report of your house price with an attached price comparison report, which will help you set the correct asking price.
You can read more about how estate agents value property in our blog.
Like most businesses, estate agents vary in quality, and their property valuations are no different. The best way to get a trustworthy valuation is by having several, and then comparing them to one another. With multiple valuations, you should end up with a good idea of what your house is worth.
We recommend finding three promising estate agents in your local area and requesting valuations from each of them. This way, you can choose the estate agent whose valuation best fits with your expectations.
Our free estate agent comparison service is a safe and reliable way to find expert estate agents in your local area. By using data from the HMC Land Registry and House Price Index, you can easily see which agent:
Once you've picked three agents you can contact each and request a valuation. All that's left to do is pick the agent you're happy with.
It takes 2 minutes. 100% free. No obligation.
Your property's appraised value should not be confused with its market value because they're not the same. Luckily, their differences are fairly straightforward:
If the person buying your house applies for a mortgage, their mortgage lender will send a licensed appraiser round to confirm the value of your property. The appraised value is what this licensed appraiser assigns your property.
Appraised values are key for the progression of property deals. A buyer relies on the appraised value to be similar to the property's market value so their mortgage offer can cover it. If the property's appraised value ends up lower than its market value, the buyer and seller can enter into negotiations to save the deal from falling through.
Appraised values are calculated according to interior and exterior factors:
Market value is how much a buyer will actually buy your property for. Knowing your home’s market value is important because you can adjust your online property listing to fit it.
While market value is usually determined by similar properties in the surrounding area, it also depends on the conditions of the local market. This includes:
Extensions and conversions are a reliable way to increase the market value of a home.
We recommend that homeowners check the value of their property at least once a year. Just as people should evaluate their savings and spending habits annually, it's good practice to regularly check the value of your biggest financial asset.
Naturally, many homeowners only value their property when:
While these factors are usually the main reasons for a renewed interest in property value, there's a lot to be said for annual house valuations.
Valuations reveal pitfalls and weak points about your home. With an annual check, you can ensure your property is on target to sell for as much as possible when the time comes. Even if you're not planning on selling, you should never rule it out as an option.
There are several ways you can find out the rebuild cost of your property:
The rebuild cost of your property is essentially much money is needed to rebuild your home from the ground up. Rebuild costs are important for insurance lenders because they help them decide how much they need to cover the costs of rebuilding your home.
It's essential that you get an accurate rebuild estimate, because if the worst was to happen and your property was destroyed, you would need as much money as possible to ensure everything is recovered.
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