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  • How To Value A Property As An Estate Agent

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To
GBP
  • 400 K
  • 500 K
  • 600 K
  • 700 K
  • 800 K
  • 900 K
  • 1 M
  • 1.5 M
  • 2 M
  • 2.5 M
  • 3 M
  • 3.5 M
  • 4 M
  • 4.5 M
  • 5 M
  • 5.5 M
  • 6 M
  • 6.5 M
  • 7 M
  • 7.5 M
  • 8 M
  • 8.5 M
  • 400
  • 500
  • 600
  • 700
  • 800
  • 900
  • 1 K
  • 1.2 K
  • 1.4 K
  • 1.6 K
  • 1.8 K
Dated:
Dec 18, 2022
Read Time:
Topic:
Estate Agent

How To Value A Property As An Estate Agent

It is a tough job. Finding the value of a home in any given neighbourhood can be a difficult task. Often the owners think their home is worth 5 times more than it actually is. This can cause some problems when you bring in a lower value through your hard work

It is easy to say the house is valued at the same level as the homeowner thinks. Many estate agents do that just to get the listing. Once they get the listing, they come back to the owners and tell them they need to lower their asking price.

It is not the honest way to do business, and while you may not get the listing for bringing in an honestly lower value to the house, you may have planted some business seeds for the future.

House Valuation

To bring in an honest house valuation, there are many factors you should and need to consider. Here are some factors you need to include in your house valuation report:

  • Prices of similar homes in the area
  • Size, age, condition, and location of the property
  • Noise and crime levels
  • Local schools and public transportation service

Make sure you do a complete inspection, noting things like is the number of rooms is accurate if there has been modernization or renovation work, if the roof is leaking, and so on.

To prepare an accurate house valuation, you need to know as much about the home as possible. Do not forget to include the current demand for this type of housing. A lack of demand can lower the value of the home.

The goal of your house valuation will be to be as realistic as possible. Even if the clients think their home is worth more than you stated, stick to your guns and your final valuation.

Property Valuation Methods

Once you become an estate agent, you will find that there are different methods to value a home. These methods often come up with different final home values, but they are as accurate as you can be.

1. The Cost Approach

This method takes into account the cost of the land and the cost to build the home, including materials and labour when it was built. This method may be inaccurate unless the estate agent factors in today’s cost for the same items.

Values and costs change over time, and what it cost originally will not be the same as it will cost today.

2. The Income Method

This is a method that is better for the buy-to-let house-buying strategy. What this method does is figure out how much money can be made off the property by letting it out.

Then you take that figure and apply it to the selling price to see how much value the house has for you.

3. The Comparable Method

Is the most common method used, and it provides a fairly accurate house valuation. Not only does it consider similar houses and the prices they sold for, but it also considers the following-- location, building size and characteristics, history, building regulations, and more.

A letting agent needs to know the local area to make sure they get the proper valuation no matter which method they use.

What Is A Property Valuation?

This is the process that decides, within a reasonable amount of leeway, the actual value of your home. These valuations are done so you can set a proper asking price for the property in its current location and condition.

Also, these house valuations are there to help you sell your home within a reasonable amount of time. A lot of research is involved in producing your house evaluation, and estate agents will need to know the local area, the schools, and so on before they can come to a realistic price for the home.

When you go to do a house valuation, you need to look at more than just the property. While its condition, problems, and upgrades are important, so are the location, the schools, public transportation, and anything else the community has to offer.

Then to get a more accurate figure, you need to look at what are called comparables. These are similarly designed homes that have sold recently in the area. Their price tag will help you come to a realistic value for the home you are evaluating.

It takes some research and some good math skills to do a house valuation. This is not something every estate agent has mastered yet.

How Long Does An Estate Agent Valuation Take

The actual inspection length will depend on your home and its design. If it is a small plain home with no special features or additions, it may only take 15 minutes to do the inspection.

If your home is in a unique section of the street, is quite large, and has extra buildings and unique features, it may last an hour or just over an hour. But this is just the inspection part of the valuation process.

After this, the estate agent will have to look for comparables, research the area a little bit as well as ask some important questions before they can arrive at an accurate value for the home.

What they are looking at in their research time are:

  • Size
  • Room layout
  • Floor plan
  • Age
  • Style
  • Condition
  • Location
  • Market conditions
  • Distance to schools, hospitals, and other community necessities

These are just some of the factors the estate agent takes into consideration.

Some Final Words

When you want to do accurate house evaluations, give our company a call. We have trained estate agents for over ten years on how to do these valuations quickly yet accurately.

Mastering the process takes time, more when you try to learn it on your own. Our senior agents have mastered the process and can help you master it as well. When you want to be the best, you call the best. Call us today and get started on becoming a great house valuation expert.

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