How do estate agents value houses and what happens at a house valuation?

If you are looking to sell your house, one of the first things you will need to do is arrange a valuation.

What is a house valuation?

A house valuation is when an estate agent or valuer visits a house and estimates how much the property is worth. They will inspect the exterior and interior, ask the owner some questions and perhaps take some measurements. House valuations are required before properties are made available for sale, and might also be conducted for a number of other reasons.

How can you prepare for a house valuation appointment?

Before a valuation it is not essential to make your house look like a show home, as if you were showing the property to a prospective buyer. A good agent will not let minor clutter have any effect on the valuation. However, it is always advisable to tidy up, perhaps clean the kitchen and bathroom and give a good impression of the property to the agent conducting the valuation.

You might want to gather any important paperwork you have about the property, and note down any upgrades and improvement works that have been made. It may also be worth researching sales in your area to have an idea of a baseline figure for your home’s value.

What questions should I ask during my home’s valuation?            

Some questions that you can ask the agent include:

• How will you determine the value of my home?
• Can you provide comparable data on recent sales of similar properties in the area?
• Are there any factors that could impact my home’s value?
• What can I do to improve my home’s value?
• How does my home compare to others in the area?
• What are the market conditions like in my area?
• Are there any legal or regulatory considerations I should be aware of?

An agent may also ask you some questions about the property. These questions may be related to the tenure of the property (freehold or leasehold), any structural issues with the property or any recent modernisation that has taken place. They may also ask about the amenities in the local area, although they should have this knowledge already.

What happens at a house valuation?

The estate agent or valuer will take a range of things into consideration when viewing your property. They will look at its interior and exterior, inspect its condition, the number of rooms it has, the age and location of the property, whether it has parking and the potential it has to be expanded. They will also identify any unique features the property has which could make a difference to its value.

As part of the valuation the estate agent will take measurements, in order to calculate the overall size of the property. This will have a direct bearing on the valuation and will be used to prepare the marketing details of the property.

The estate agent may also take photographs during the valuation, although the marketing photographs (used to promote the property) may be taken at a later time.

How long does an estate agent valuation take?

You can expect a house valuation to last 15-20 minutes. It might take less time, or a little longer to value your property. It will really depend on the size of your house and the number of rooms you have. If there are any unique features to your home, allow more time.

What do estate agents look for when valuing a house?

Property Condition

A primary consideration for a valuer when valuing a house is its condition. Is the property structurally sound? A valuer will look for cracks in the interior or external walls, or any evidence of subsidence. The state of roof tiles and guttering will be inspected. Any significant remedial repair work that is needed on the property will affect its value.
Are there signs of damp inside, such as peeling wallpaper or black marks on the walls or ceilings? How old is the boiler? Does money need to be spent modernising the property? If a house needs new carpets or a new bathroom buyers will be looking to reduce what they are prepared to pay for the property.

Size and Layout

How many bedrooms does the property have? What size is the plot? How big is the garden? Space is an important factor when valuing a house, but size alone does not determine the valuation. In the UK the number of bedrooms is more important for families, because of the preference for children to have their own room.

Location

Location, location, location – where have we heard that before?! It’s so true though. A valuer will know the market value of similar properties in the local area, and how this is affected by proximity to schools, shops, transport links and outdoor space.

Parking

Where can you park? Does the property have a garage or driveway? Private off-road car parking spaces are not always guaranteed, especially for properties in urban areas. For these types of properties valuers will want to know how easy it is to park close to the property and whether parking permits are needed.  

Property Features and Upgrades

Houses that have had improvements and extensions can have a beneficial impact on valuations. Estate agents like value being added in the form of additional bedrooms (turning a loft space into an extra bedroom, for example).

Local Demand

The valuation will take into account the local market conditions. For example, if there is high demand for a similar type of property to yours, and there are not many properties like it currently available, then the valuation is likely to be higher than if supply is high and demand is low. The estate agent will look at comparable sales and market trends in the local area.

Local Developments and Area Potential

An agent valuing a property will also look at planning developments for the local area. Are there any proposed housing developments nearby, areas identified for regeneration or applications for commercial/industrial sites? Future development has the potential to affect the price of property now, both for good and bad.

Expansion Potential

Is there potential to develop the property? This is an important consideration for valuers, as buyers will look more favourably on properties that can grow as their families or needs grow. Could outside space be used for an extension, a loft turned into a bedroom, or a cellar into a study? Valuers will want to know if any planning permission applications already exist for the property, which will improve your chances of receiving a higher valuation.

If a property is listed or is in a conservation area, potential for development will be limited.

What happens after a house valuation?

Estate agents aim to provide an accurate valuation of your property at the valuation appointment. If this is not possible, they will usually send you a valuation report very soon after the valuation.  You will be able to review the report and ask any questions, and then prepare for what’s next – whether that is putting your property on the market, or whatever you wanted the valuation for.

How quickly will I know how much my house is worth?

Some estate agents might give you a valuation at the time of your appointment, or at least a rough estimate; others may wait until they deliver their official valuation report.

How long is an estate agent house valuation valid for?

There is no set time before a valuation expires. The valuation will be applicable for as long as the market conditions remain the same. This depends on a number of factors, and the housing market can change quickly.

However, you should try to put the property on the market within three months of any valuation.  Any longer than this and you should get an updated valuation, to ensure you are still offering your property at a realistic price.

How many house valuations should I get?

Getting three valuations will normally give you a good idea of an average or realistic valuation. It will probably offset the effect of one high or low valuation. A valuation that is too high could mean the property attracting little interest from buyers, and if it is too low it could lead to a sale, but not for a competitive price.

Are you ready for a house valuation?

If you are looking for a valuation on your property, haart offer a free, up to date, no obligation valuation service. Valuations take around 15-20 minutes and will give you an accurate idea of what the asking price of your property will be when it is up for sale. Our agent will be able to spend time during the valuation recommending the kind of improvements or changes that could add value to your property.