When doing property appraisals, in my experience, many homeowners already have a figure in their heads, having most of the time come to this conclusion from an array of outside influences.
* The house next door sold six months ago for ££££’s!
Six months in the property sector is a long time, and you must take into account changes in interest rates, what’s on the market of your property type at the moment? Is the market flooded with your style of house? Is your house of the same standard as the house next door?
* I only bought the property two years ago and since then I’ve put in a new kitchen, bathroom and renovated the loft space!
Has the property gone over the maximum value threshold for your postcode?
* I have a friend whose an estate agent and she reckons it’s worth ££££’s!
Does your friend live in the area? Has s/he done a complete appraisal? Sometimes having a friend do a market appraisal can do more harm than good!
* I need ££££’s, so I can buy my next property!
This is a more genuine reason! But if your property is being pushed to the limit ‘asking price wise’ then you have to be prepared to be on the market for a long time! This could mean that you miss out on your next property purchase.
What is a market appraisal?
This is a process that estate agents conduct using a varied amount of local and digital knowledge to be able to find a marketing price that is right for their client. Comparison reports, future planning for the area, local knowledge from previous sales in your postcode, sector designed software, land registry information and market conditions all apply, to come up with a sensible marketing price for the property. Agents need to be aware of what a client’s bottom-line price of acceptance would be when appraising a property, because they’re maybe buyers who will slip in a cheeky offer. It’s all about communication between an agent and a client.
Differences between marketing price and actual sale price.
When approaching clients after a market appraisal with a marketing price many agents will over value just to get the business, but not all. If an agent has overpriced, then within a month of scarce or no viewings they will be asking you to drop the price. This can be demoralising for some. That is why the best course of action for a vendor is to gain three appraisals and it’s imperative that you choose a realistic price, but also choose an agent that shows enthusiasm and interest in your property. You have to remember that you could be working with this agency for the whole process of sale of your property.
Other factors to consider
If valuations don’t come up to your expectations, just think about all the little issues that you may have not considered when doing your own calculations and always be willing to take advice from a professional.
Amazing experience using Harrison Thorn to sell a piece of land. I honestly never lifted a finger and yet got more than the price I wanted for the site, thank you for your efforts. I will certainly be recommending this great company to my friends, family and contacts.
Mr S Garey
2nd Floor Rothley House
Coalville Business Park
Leicestershire LE67 3NR
Registered in England and Wales number: 9427208. Registered office as above.
VAT number: 216302745