In the UK and around the world, having an estate property is a matter of financial and social stability. On the other hand, it also means a lot of investment, care, and worry as this source of income is being used and torn. If by any chance, you wanted to find out the value of your residential property for several reasons, you might’ve came across the complex wall of online tools and calculators, law requirements, appraisals, and the complete dreadfulness called the comparable real estate market.
But, fear not! Here are some things you need to follow and esteem when determining the value of your residential property.
Location and Other Important Things
First (but not last), the overall characteristics of your property should be taken into consideration, like condition, location, and features. The property’s amenities, square footage, number of rooms and bathrooms, and floor plan functionality, are the most important factors in assessing its value. But, as any real estate agent will tell you, there is nothing more important than location.
Where your property is based and positioned in which city or neighborhood means different increases or decreases of the value. For example, the neighborhood’s value is based on various factors including crime rate, its proximity to schools and hospitals, the local school system’s rating, and other surrounding amenities, like beaches and parks. And where your property is within this community, is adding to the weight.
Other factors that depend on your property entirely would be construction materials, the age of the building, overall design, heating, and cooling systems, storage and garage spaces, general landscaping of the property. Based on these aspects, you can hope (or not) for a suitable price.
The Professional View of Your Property
Most importantly, if you have a feeling that you’re still not taking all the factors into account and that you’re missing some of the relevance, have in mind that you can always hire professional help. And when you’re at it, make sure to find a company that’s not only doing business in the estate market but is also working in the land, property, and construction sectors.
That way you will have all-around preview and feedback, not only based on comparative market analysis but the state of the residential property. For example, the folks at JS Surveying & Design stress how important it is to find charted surveyors and registered valuers as they must follow the RICS (Royal Institute of Chartered Surveyors) evaluation standard and can provide you a formal report on various inspections. You can establish a property’s value before putting it on the market, you can have advice concerning architectural design or ask for a report on a specific defect such as dampness and water ingress problems in buildings, they can help you with the paperwork, boundary disputes, and neighborly matters. And if you strive to sell your residential property, then experts’ advice could come in handy.
Market Demands and Offers
While evaluation of the comparable properties might be a good way to distinguish the value for single homes, the strategy for residential properties is not that easily established. Besides the neighborhood and overall state of your property, there is the market. The change between offer and demand will, inevitably, affect the value of your property as well. Therefore, look into:
- City’s growth and spreading and, more importantly, expansion and building of the nearby town that mean lower rates
- Local and national economic status
- Buyers’ needs and confidence
- State of the local stock market and its saturation
Business cycles are influencing the value too. If you’re determining the price during “the sellers’ market” that is saturated with much more buyers than selling properties then expect higher results, but if you’re determining it during “the buyers’ market” then the outcome will be quite the opposite.
Square Footage and Space
Another area that’s affecting the property’s value is the overall square footage and how’s that space distributed throughout. How much of the square footage is functional and livable, and how much goes on the storage space? Practice is that, for example, if you have an adaptable and finished basement that provides livable space, it is very rare that it going to be included as the usable above-grade square footage (although it is added to the overall evaluation in the end).
Another practice completely goes for garage space and how many of those your residential property has. The size and the number will actively contribute to the value. The same goes for storage space, such as basements, attics, auxiliary rooms, and buildings.
Improving the Value
If your neighborhood area has experienced recent distressed sales, it, unfortunately, could mean that you can expect a lower valuation of your property. It doesn’t instantly mean lower sales as you can do a couple of things before or during the evaluation. If you believe that your property’s value has been pulled down because of the price of nearby sales and foreclosures, you may try to assure the surveyor that your property is worth more if it’s really in indubitably better condition than those nearby’s.
Also, to make sure you get a satisfactory estimate, a complete inspection of the interior and exterior must be done beforehand and any conditions that negatively affect the property’s value, such as needed repairs, have to be noted and taken care of. Updating features like roof, siding, windows, and doors will also add to value because they improve the overall safety of the structure, as much as functionality. You should also look into electrical status, insulation, heating, and cooling systems. These updates and renovations don’t have to be big to increase the value but anything is adding to the value.
Therefore, before putting your residential property on the market to be sold or rented, make sure to renovate high-impact areas of any property, such as kitchens and bathrooms, and to get the best possible formal report. Then it is everything in the market’s hands, but hopefully, with a little help from your experts – your residential property will stand solid and you will get the picture of your overall financial health.