How much is my house worth? UK sellers must ask themselves this question. It is essential to have this information – and that it be as accurate as possible. Why? You need it to set a realistic asking price, neither pricing potential buyers out nor pricing it so low that they do not achieve the profitability that they could and should.
Home value refers to what buyers would be willing to pay for it; it is also called ‘current market value.’ If you do not know the value of your home, well, you are not alone. Many, if not most, homeowners do not. Again, though, if you are interested in selling, answering the question is critical. How do you find out?
A Brief Look at Home Value
Home value depends on a variety of factors, including:
- Value is typically higher in areas that are considered desirable and in neighbourhoods that boast high kerb appeal. It also helps if there is close and convenient access to transit routes, shops, restaurants and services. The geographical location also matters. For example, homes in London are typically assessed at a higher level than those in more affordable areas like Birmingham.
- Size and Condition. These factors play a large role when it comes to your home’s worth. How big is it? What is the layout? Is it in good shape or has it seen better days? Have you recently completed improvement projects, from painting to updating appliances to installing new windows? This too can help boost value.
- Homes in good and great school systems typically enjoy higher value.
- When house hunting, potential buyers look at similar homes to yours that have sold in recent months. They understandably do not want to overpay.
- The Market. What’s going on in the market? If it is a seller’s market (i.e. more buyers than sellers), you can ask for and often get a higher price. Conversely, if it’s a buyer’s market (i.e. more sellers than buyers), you may have to adjust your pricing strategy. Interest rates also play a role, as some people will be priced out of the housing market due to the cost of borrowing money.
How Much Is My House Worth UK?
You definitely have that question in mind “how much is my house worth in the UK?”– but how can you get answers to this? Fortunately, there are several methods available to you. Let’s explore them:
- Contact an experienced estate agent. Estate agents often provide a free valuation. This is their chance to take a look at your property – and pitch their services to you. Aim to get valuations from two to three professionals.
- Instruct a valuation professional. You can also instruct a professional to do a valuation for you. They will look at factors such as the condition of your home, your location, comparably priced homes and the overall market to arrive at a figure for you.
- Use online tools. While not as accurate as a professional valuation, you can use tools online to get a good sense of how much your house is worth. Try YOPA, Zoopla, Rightmove, OntheMarket.com, the Land Registry (England and Wales) and/or Nationwide.
- Compare similar properties that have sold. You can also pull comparables on similar properties that have sold. Good resources here are the Land Registry and PropertyData.co.uk/comparables. Again, this is not as reliable as a valuation from an estate agent or other professional, but it will give you a big picture.
Remember, when it comes to the value of your house, what matters most is what people would be willing to pay for it. If you price a home too high, you turn away potential buyers and you could find your house sitting on the market for months or longer. Lowering the price by just £5000 or £10,000, for example, can open up a whole new target buyer ground and help you sell more quickly.
On the other hand, if you price your home too low on the spectrum, then you risk not having the level of profitability you need or the financial wherewithal necessary to achieve your next goals. For this reason, and many others, it is important to know your home’s value. Setting a reasonable, realistic asking price is critical in the sales process.