How much is my house worth? UK property valuation tips for 2020
So, you're considering selling your home to take the next big step in your life, free up some equity or make a new investment. However, before you can get your house listed and sold - there's one big question to ask yourself.
How much is my house really worth?
The answer to this question has a huge impact on whether or not it even makes sense to sell your home in the first place. On top of this, having a rough estimate will also give you an idea of what you should be expecting financially, in particular how the market value numbers align with your future plans and financial goals.
So, how can you find out how much your property may fetch, or in other words - its estimated value?
Get a property valuation from local estate agents
One of the easiest ways to get an accurate valuation that represents the real market value of your property is to reach out to trusted local estate agents.
These professionals have a good grasp of the local market and the corresponding house prices.
Once you're in touch, an estate agent can look over your home and note down all the unique details. They’ll then compare these with the other properties available on the local market to give you a good idea of the estimated value of your home.
Thankfully, this type of property valuation is usually completely free. This is due to the fact that if you choose to enlist the estate agent in question to help you sell your home, they can expect a good commission out of the sale. And as such, helping prospective clients figure out their property's estimated value is part of their offering.
However, don't make the mistake of going with the first agent or property valuation that you receive. It's always best to get a few extra "second opinion" quotes from other estate agents in the area to get a better idea of what the real estimated value is. If you’re thinking about selling we recommend getting valuations from at least three local estate agents.
Our handy comparison tool can help you find the agents who offer the most accurate valuations:
But, if you're not committed to the idea of selling your home - getting in touch with several agents and having them spend time to value your home, and never following through with the sale can be quite the upset.
As such, here's the best option if you simply want to get a better idea of what your home could be worth, without any of the commitment that you'd expect with an estate agent.
Use an online price valuation tool for a quick estimated valuation
If you’re not ready to talk to an agent, for example if you’ve not decided whether you want to sell, or you’re worried about wasting an estate agent’s time - you can get a quick and free market value quote on your property via a free, online valuation tool.
Our online valuation tool actively tracks new homes that are listed on online portals, along with historic data stored by the UK/Scottish Land Registry, and track the final sale price. Given the Land Registry aims to record all property transactions across the UK on their database, they've got a lot of data to go off of.
Effectively, the tool compares your property and its core features such as square footage, amount of land and other essential details against other homes in your area with a similar feature-set to provide you with an estimated average price on your home.
Using our online valuation tool is definitely one of the quickest ways to get a good indication of the amount your property may potentially fetch if listed. However, given the tool is only able to use data publicly available online, it cannot take into account some of the specifics of your property such as the interior details, any landscaping or renovations or upgrades you have made to your home. This means an online property valuation is always just an estimate of the true value of your home.
But, if you just want to get a quick, loose idea of the average market value for a property like yours - this is definitely the easiest and quickest way.
Alternatively, you can also try and value your property manually. This is done by taking the average home sale price for a few similar properties sold in your area and dividing it by the square footage of the home you want to sell. Then, you can multiply this number by the square footage of your own home to get a hint at the fair market figure for your property's value.
Why is calculating your property's value useful?
While it's pretty obvious why figuring out the perspective value of your property is useful for someone that is looking to potentially sell their home - getting a good idea of the figures ahead of time can also be just as useful to potential buyers.
If you're shopping around for the perfect place to build your nest, or even simply looking into getting a good investment property to enrich your portfolio, figuring out whether a home is over or underpriced could make a huge difference in the decision you'll end up making.
For example, knowing the fair value of a property plays a huge role in being able to negotiate the best deal for yourself.
However, just as it helps you buy and sell, knowing the value is also important for being able to keep a close eye on your property taxes and even your home's insurance policy. This helps you make sure that you're always being charged fairly and that there are no mistakes being made on the insurer's or registry's end when it comes to your cost and coverage of your policy and the amount of taxes you'll have to pay.
In addition to this, people are becoming more and more financially conscious. And when you're doing your regular round of financial planning - being able to keep track of your assets and their summary performance is crucial. Knowing the value of your house plays an important role in keeping tabs on your finances and figuring out what the best next move is when it comes to finances. For example, this could help you negotiate a remortgage on your property where you can then leverage some of the equity to make further investments, upgrade your property or even help pay for your children's education.
Last, but certainly not least, if you're planning to do some upgrades on your property like land work or an overhaul of the interior in your home - it may be wise to run the numbers ahead of time to see how this could impact the price of your house. At the end of the day, the last thing you would want to do is to invest your hard-earned cash towards costly renovations or upgrades, only to find out that your home did not increase in value at all, despite your investment.
Whether or not you're actively looking to buy or sell your home, being able to calculate the valuation of your property is a very useful thing to do all-around. And when it comes to being able to do so, there are quite a few methods that you can leverage to get the best possible insight into what your home might be worth.
Let's take a quick look at some of the most frequently asked questions that we get from readers on the subject of valuing property.
House Valuation FAQs
How do I find the value of my house?
The most reliable way would be to get in touch with an estate agent who can give you an accurate valuation for your property. The best estate agents are experts on the local market and house prices in your area. Our free, easy-to-use comparison tool will tell you exactly which agents are the best at valuing properties in your area.
But, if you’re not ready to enlist the help of an estate agent, you can find out your home’s worth for free online with our free valuation tool. It references data from all across the UK, using the Land Registries, and online property portals, to give you an idea of what your home may be worth according to the area averages, land registry values and other key indicators.
However, bear in mind that an online valuation cannot factor in any finer details such as renovations, decor, land work and other unique elements which could otherwise increase the value of your home.
How do you find the market value of a property?
The easiest way to get the fair market value of your property is to figure out how much homes in your area in the UK sold for on average. Then, you'll want to divide each home's sale price by its square footage to get a figure for the average house worth per square foot. Lastly, take this figure and multiply it by your home's square footage. This should give you a fairly accurate ballpark figure for how much your house is worth in the current, local market.
Keep in mind that any additions, upgrades, decor, landscaping and such could also put you above that market value. Whereas, any damage or repair work to be done could make your home worth significantly less than you'd expect.
How many valuations should I get on my house?
On average, the best approach to find out how much your property may be worth is to get 3 separate valuations from local estate agents, on top of figuring out how much the property may be worth according to local market averages. This will give you a fair range to work with and a better idea of how much you could possibly sell your property for once you're ready to list it.
The idea here is that while having even a single point of insight is already fantastic, the more data you have to go off, the better of a decision you will be able to make for you and your family. And if you're worried about costs - don't fret! If you book through GetAgent, your estate agent will not charge you anything to visit and value your property.
Whether you're ready to let go of your property and move on to bigger things, or simply want to know how much your home may fetch on the UK property market - there are several ways to get an accurate valuation of the value your property bears.
We've listed out some of the basic ways that you could get a good estimate for your own property. And we hope that we've been able to share some insights and give you a few new ideas on how to best proceed with the task.
Best of luck!