How much is my house worth

Tue 26 Mar 2024

You’ve made the decision to sell your property, you’ve met with multiple estate agents to get their view on its market value and they all differ from each other and from your own opinion on its worth. So you ask yourself, how much is my house worth and subsequently what price should I market my property for? Which are often two different figures.

When it comes to marketing your property for sale, agreeing on a figure that is going to entice buyers to show interest who then submit a good offer is of course one of the most pivotal decisions you'll face and its very important to get it right from the start.

You're likely to encounter various opinions on your property's value, especially if you're consulting multiple estate agents. Speak to anybody who has sold a property and they’ll comment that whilst this discrepancy in valuations is very unhelpful, it is very common. Valuing properties isn’t an exact science but why is there such a variance, and how can you feel comfortable that you’re marketing your property for the right price?

It's important to note that at most market appraisals, an estate agent is not just giving you their opinion on the value of the property, they’re trying to gain your trust to ultimately win your instruction to market the property for sale. Every agency has their own approach to pitching for your business and whilst we are surrounded by some excellent agents locally, we find some property owners asking the question: do agents deliberately overvalue properties? While it's not a widespread practice, some agents might overvalue to win your business, promising a higher sale price that may not be realistic.

So, how can you tell if a valuation is accurate? An effective approach is to compare the valuations against recent sale prices of similar properties in your area, also known as comparables. If a valuation significantly deviates from these comparables without a reasonable explanation, it might be inflated. At Langford Rae Property Agents, we will discuss these similar properties that have recently sold nearby with you, at the appraisal appointment. We will explain what benefits your property has over these comps but also where a buyer may prefer these other properties over yours and how this could impact the value of your property. We will also discuss properties that have been marketed which didn’t sell and go through why we think this is, to avoid you having the same dissatisfaction.

Is trying a higher price really a problem? Initially, it might seem like a strategic move to test the waters. However, setting your price too high can deter potential buyers, leading to a longer time on the market and possibly resulting in a lower final sale price.

The landscape of estate agents has transformed significantly over the past decade. Whilst we will always sing the praises of your local, independent estate agent who has been helping buyers and sellers move locally for many many years, the industry has evolved, and you now have a wider choice of agent types to choose from. You have your traditional independent agencies, then your corporate outfits that follow a strict valuation framework, online agencies that rely on algorithms for valuations without physically visiting the property and also self-employed individual agents who often work from home and offer a very bespoke service. Each brings a different perspective to property valuation, but who is truly correct?

In reality, a property's worth boils down to what a buyer is prepared to pay for it. Despite all the knowledge, experience, and mathematical formulas, the final value is determined by the buyer's perception and willingness to pay, whether it's at, above, or below the asking price.

Getting the price wrong when marketing your property can significantly impact its saleability. A too-high price tag might deter potential buyers, while a too-low price might mean leaving money on the table. It's a delicate balance, ensuring your property is attractive to buyers without underselling its worth.

Even once you have agreed a sale to a buyer, at a figure that you’re both comfortable with, you then hope that a surveyor on behalf of a mortgage lender (if your buyer is borrowing money) has the same opinion on the value of the property.

At Langford Rae Property Agents in Chelsfield, we treat every market appraisal as an open discussion, not just an hour of us telling you what it is worth and how wonderful we are! We like to think we’re very knowledgeable on market values but as a homeowner, you will have your own opinion on what you feel the property is worth based on your own research. If you arrange for one of our valuers to visit you, we will always ask you in advance what bracket you feel your property’s value falls into. This isn’t to give us the answer on what your house is worth, it is for us to get a steer on your expectations, your plans, your timescales and also what sort of information you have been given from other agents.

With Langford Rae Property Agents you're not just getting a valuation; you're working with an open and honest group of Agents who ultimately want to help you sell your property for the most amount of money but in the timescales and by a method that best suits your plans.

Image by benzoix on Freepik