Whether you’re selling up, re-mortgaging or just being nosey (can you afford to finally sell and buy that dream property you have been after for years?), finding out what a home is worth is always a good thing. But what goes into calculating the value of a property? Is it all about location (location, location, location) parking, and size or is it about insulation and if it is energy efficient? Well, the answer is all of the above!
Let’s take a look at how you can find out the value of your home, how to determine whether your home’s value has increased over time, and why getting a home valuation should be the first thing you do, before anything else.
A detailed home valuation influences the type of renovations you should make. It also avoids spending on areas that do nothing to increase your property value. For instance, you have been thinking about redoing the family bathroom for years so you want to proceed. But, before doing anything, you had an inkling to stop and ask a professional estate agent to come along and provide input. The estate agent thinks nothing of the family bathroom, but, points out how if you turn your home office into another bedroom and list it as such then that increases your property value by 15%. A property expert gives you accurate direction on what to focus on, and what to leave as is when it comes to home renovations.
You must have a recent valuation before putting your house on the market, as any previous valuations only offer a snapshot of the market at that specific time. The reason is maybe the market has changed since your last valuation and your property has gone up in value. You don’t want to leave yourself out of pocket or undersell your property.
Once you know the value of your home, you can work out how much equity you have. Equity is the amount of cash (if any) you earn from selling your property. It does not include the money left on your mortgage, only the amount you have already paid off in terms of your deposit and loan. The higher the percentage of its value you paid for, the more equity you have in it.
Knowing how much your home is worth in the present housing market establishes a competitive and realistic price you can charge tenants for rent too.
Mortgage lenders need to know your property value to assess the loan-to-value ratio. This is especially helpful when you decide to re-mortgage your home. Re-mortgaging does not include the money still due on your mortgage, only the amount you have already paid off in terms of your deposit and loan.
You might consider re-mortgaging if your existing mortgage is nearing its term, you’re looking to lower your monthly payments or if you need to borrow money for home renovations.
These days, with the help of the internet a wide selection of free tools and services are available to help you determine the value of your property.
For those looking for results in an instant, there are many websites offering online valuations, including our own (link to valuation page). Instant valuations are a quick and easy way to jumpstart your journey into finding out more about how much your home is worth.
Popular choices include Rightmove. With Rightmove, you can simply enter your postcode or street to see which properties have been sold and for how much. You can narrow the search by property type to find comparisons that match your home. If your house has been listed on Rightmove, it should show photos with floor plans and previous sale prices.
Land Registry Data shows sold house prices, house plans, names of legal owners if there are any mortgages, and if there are any other legal matters affecting the property value.
With numerous factors affecting your home’s value, and the variable quality and accuracy of online estimates, if you want a reliable valuation, there’s only one way to know for sure: ask a local estate agent. The local, land, school, property and attraction knowledge is why your local estate agent provides a comprehensive assessment. By booking a property valuation with us, you are receiving the experience, knowledge, and extensive research we put into each property valuation. We provide you with the most precise home valuation in these current market conditions.
You can request a face-to-face valuation or get an instant online valuation here.
Besides your local estate agent, there are several reliable tools online including the UK House Price Index. Their website provides you with a search tool which allows you to find house price trends in the UK. According to their website, “As of November 2022, the average house price in the UK is £294,910, and the index stands at 154.67. Property prices have fallen by 0.3% compared to the previous month and risen by 10.3% compared with the year earlier.”
If you would like to find out your home worth, please contact Charters Estate Agents today. We are happy to help you anytime.
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