An Accurate Property Valuation Is the Key to Successful Sales
Before making any significant purchase, you likely spend time researching the market prices. Potential property buyers, often facing the largest investment of their lives, invest considerable time and effort to understand the market rates for their desired property. Therefore, it is crucial for the success of your sales process to have the value of your property accurately assessed. Only with a fair and professionally calculated selling price can you effectively attract ready-to-buy clients for your property.
As experienced real estate agents in London, we have the necessary expertise to provide your property valuation with a solid foundation.
Our thorough property valuation: Verifiable and proven
You can find standardized, free property valuation portals on the internet in abundance. But how are properties assessed there? And why do the results vary significantly from one provider to another? We also don’t know exactly which algorithms are at work behind the scenes—but we can clearly answer your five most important questions about our property valuation:
How do you value my property?
We utilize the comparative value method, which has proven to be very effective in our long-standing experience as real estate agents in London. This means we compare your property with a sufficiently large number of houses or apartments that have been sold recently. We base our assessment on anonymized, certified sales contracts archived by the appraisal committees in London. However, since no properties are ever exactly the same, adjustments are made to account for various factors, including:
- Location of the property and transportation links
- Age of the building and condition of the structure
- Construction type and floor plan
- Energy efficiency of the property, etc.
Why is a thorough real estate appraisal so important?
The goal and purpose of property valuation is to determine the current market value of a property. This is the monetary value at which your property is positioned in the London market, taking into account supply and demand. This market value serves as the essential basis for determining the asking price with which you will enter the sales process.
From our extensive experience in the London area, we know that it is advisable to set the selling price approximately five to eight percent higher to allow for some negotiation room.
What happens if the price is set too high?
Nothing at all, or worse: a lot. If you set the price too high, you deter potentially interested buyers for your home. Conversely, high prices attract a different group: ‘window shoppers’ who have no serious intention of actually buying your home. As time goes on and your listing remains on the market, it begins to appear as a stale listing.
What are the consequences if the price is set too low?
In the best case, you only lose money unnecessarily. More often, however, potential buyers become suspicious—an issue that can damage the entire sales process. Well-informed buyers may speculate that there is something wrong with your property if the price is too low.
Who can help me if I have questions about property valuation?
Feel free to contact us at any time by phone or email. We will answer any questions you may have regarding a property valuation.
Expertise and transparency – for a trustworthy partnership
With a thorough property valuation, you lay the foundation for a swift and successful sale of your property. As a reputable, long-established real estate agency from London, we support you from the very beginning with our extensive expertise and consistent transparency in our work. We take the time necessary to ensure a trusting partnership, so you always feel well cared for. We look forward to hearing from you.
Why is a professional valuation important?
For a smooth sales process, it is important to enter the market from the outset with a realistic price. Property owners usually have a strong emotional attachment to their former home and tend to set an overly high asking price. Prospective buyers are deterred by such high demands and may ignore the property in their further search. Often, they may not even notice when the price is later lowered, leaving the owner stuck with the property for a long time. On the other hand, if one does not know the actual value of their property and sets an asking price that is too low, it may sell quickly but will result in significant financial losses. A professional property valuation ensures market-appropriate pricing and leads to a swift and successful sales process.
How does an agent evaluate my property?
To establish a realistic value for your property, the agent relies on various factors. First, they analyze the market situation and compare the prices at which similar properties are being offered. The location, construction year, and current condition of the property are also important elements that the professional examines and incorporates into the calculation. Additionally, for a legally compliant market value appraisal, the relevant documents related to the property are reviewed to determine if there are any financial or legal encumbrances. An expert also checks whether structural issues, construction defects, or the characteristics of the land might diminish the property’s value.
What role does the condition of a property have in the valuation?
Along with the market conditions and the property location, the condition is one of the fundamental factors in property valuation. Age, construction defects, or a backlog of renovations significantly impact the value and can quickly lead to a depreciation.
What is the difference between a property valuation and a market value appraisal?
The property valuation offered by many agents primarily serves to establish a realistic price. Key data such as age, size, and year of construction are taken into account. Together with the expert’s experience and knowledge, a market-appropriate property value is then determined.
In contrast to a standard property valuation, the market value appraisal is legally secure. Therefore, its results can withstand any potential legal disputes and are often used for protection or as a basis for disputes. In determining the market value, a certified expert conducts a more in-depth analysis of the entire property, considering additional factors such as construction defects and any legal or financial encumbrances.
What types of appraisals are common?
Depending on the purpose of the appraisals, agents typically use one of these four valuation methods:
Standard Property Valuation: This method is used most frequently and aims to determine a market-appropriate price for a property based on key data and comparable values.
Market Value Appraisal: Since this appraisal is legally valid, it is used to secure legal protection or to establish a dispute value for a legal proceeding.
Value Appraisal: This method aims to assess the replacement value of a property. In other words, it calculates the costs that would be incurred to rebuild the property in its current condition.
Income Value Appraisal: The income value appraisal focuses on the profit that a property generates, for example, through rental income. It is usually of interest to potential buyers who are looking to rent the property out.