How does an estate agent value my house?

What is an estate agent valuation?

It’s a crucial part of the process of selling your house or flat to an estate agent.

When you decide to sell through this option, the estate agent will visit your home to take measurements and assess its value based on its physical qualities. But the estate agent will also consider a host of other aspects that can affect the value of your property, including some outside of your control such as the amenities that are available nearby.

This value will guide the estate agent in deciding what price they suggest that you should list your property for sale. If the value is set too high compared to what your home is actually worth, you might struggle to sell it and it could sit on the market for weeks, months, or even years in some extreme cases. And if the value is set too low under the actual market value, you risk unnecessarily losing out on profit if the estate agent manages to sell the property.

That’s why it’s vital to price your property just right when selling to maximise the profit while securing a fast sale.

What factors do estate agents consider in a valuation?

Estate agents will not base their valuation on any one factor, but instead will give you a suggested sale listing price that takes into account several factors at the home and beyond.

Your home’s physical characteristics – Perhaps the first thing that your estate agent will assess is the actual physical characteristics of your home – everything from how many bedrooms it has through to the current condition of important rooms like the bathroom and kitchen.

Amenities available near your house – This is a factor completely out of your control, but estate agents will assess the value of your home in part based on its proximity to amenities that buyers are looking for including gyms, supermarkets, restaurants, and more.

Status of the current local housing market – Your estate agent should have a good grasp of whether the housing market in your area is doing well or is on the decline, and will use this knowledge as one of the various elements that they use before telling you their valuation of your home.

Potential for further improvements to your home – Another aspect that your estate agent will consider is whether your home has potential for future improvements, including physical extensions, because if so this a quality that can help to make your home more attractive to potential buyers.

What can I do if I think my estate agent’s valuation is wrong?

You could consider performing your own valuation of your house of flat. It will require a fair amount of time and work but it’s entirely possible to get a decent idea of how much your home is worth by doing some research online and elsewhere.

There are many online tools that can give you a swift rough estimate for how much your property might be worth, but only use these as a general guideline. Many of these tools use information that is out of date and therefore creates an inaccurate price estimate.

A great place to look for property prices is on the website of the HM Land Registry, a non-ministerial agency of the UK government that oversees home sales throughout Wales and England. If you search for a specific property on the website using the building’s address, you’ll get a wealth of information that includes recent sale prices. This can help you get a better sense of exactly what your home is worth.