The factors that affect the valuation of a home
The world of professional property valuation is somewhat of a science.
When it comes to valuing property for the purposes of securing lending, or for any other legal process, our RICS Registered Valuers are duty-bound to provide as accurate a Valuation as possible at the time of the inspection report.
There are many factors that come into play in relation to the value of a property, as we detail below…
The location of a property is by far the most important factor when it comes to valuing a home. Factors such as distance to amenities, transport links, proximity to highly regarded schools etc, can all make a difference to the popularity of an area and therefore the demand for property there. This ultimately drives how much houses in an area are worth.
The second most significant consideration is the property’s size. When inspecting a property, our valuers will measure the house’s square footage and its usable space. The number of bedrooms and bathrooms in a house will also influence its valuation.
Another factor that impacts the value of a home is its age and current state of repair. Older homes that have been improved and kept in good condition can carry a premium, but homes where the condition has been allowed to slide will not hold their value as well as other comparable properties.
In addition to the above factors, other things that may impact a property’s value at the time of valuation include:
- The housing market conditions
- Economic indicators, e.g., interest rates
- The property’s historical sale prices
- Comparative property sale prices
It’s important to point out that the price a property is officially valued at by a Valuation Surveyor may not be the same as the price that a buyer is willing to pay. This is particularly the case where a property is one of a kind, of non-standard construction or in a very dilapidated condition, as it can be harder to establish an accurate market value in these circumstances.
Lea Hough’s Valuation Reports are all conducted by RICS Registered Valuers and are available as a standalone report or as part of a property survey. For more information or to obtain a quote on instructing our team to undertake a valuation, please get in touch.BACK TO NEWS