A Precise Property Valuation is Key to Sales Success
Before making any significant purchase, you likely take the time to thoroughly research the market prices. Potential property buyers, often facing the largest investment of their lives, also dedicate considerable time and effort to understanding the market rates for their desired property. Therefore, it is crucial for the success of your sales process to accurately determine the value of your property. Only with a fair, professionally calculated selling price can you directly attract serious buyers for your property.
As an experienced real estate agent in London, we possess the necessary expertise to provide a solid foundation for your property valuation.
Our comprehensive property valuation: Verifiable and proven
You can easily find standardized, free property valuation portals online. But how are these valuations conducted? Why do results vary significantly from one provider to another? While we may not know exactly which algorithms are at work in the background, we can clearly answer your five most important questions regarding our property valuation:
How do you evaluate my property?
We utilize a well-established comparative valuation method, which has proven effective throughout our years as real estate agents in London. This means we compare your property with a sufficiently large number of houses or apartments that have recently been sold. We rely on anonymized, certified purchase contracts archived by the valuation committees in London. However, since properties are never exactly alike, we apply adjustments based on factors such as:
- Location of the property and transport connections
- Age of the building and condition of the structure
- Construction style and layout
- Energy efficiency of the property, etc.
Why is a solid property valuation so important?
The goal of a property valuation is to determine the current market value of a property. This is the monetary value at which your property stands in the London market, considering supply and demand. This market value forms the essential basis for setting the listing 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 negotiation room.
What happens if the selling price is set too high?
Nothing, or worse: a lot. If you set the selling price too high, you deter potentially interested buyers for your property. Conversely, inflated selling prices attract a different group: casual lookers who have no serious intention of purchasing your home. As time goes on, your listing may start to appear stale on the market.
What are the consequences if the selling price is set too low?
In the best case, you might lose money unnecessarily. More often, however, potential buyers become suspicious—a situation that can harm the entire sales process. Well-informed buyers may suspect that something is wrong with your property if the selling price is too low.
Who can help me if I have questions about property valuation?
Feel free to reach out to us anytime by phone or email. We are here to answer any questions related to property valuation.
Expertise and transparency – for a trusting relationship
With a comprehensive property valuation, you lay the groundwork for a smooth and successful sale of your property. As a reputable, established real estate agency from London, we support you from the very beginning with our profound expertise and transparent approach to our work. We take the time needed to ensure a trusting relationship—making sure you always feel well cared for. We look forward to your inquiry.
Why is a professional valuation important?
For a smooth sales process, it is essential to enter the market with a realistic price from the outset. Owners often have a strong emotional attachment to their former homes and tend to ask for too high a price. Such high demands can deter interested buyers, causing them to overlook the property in their search. Often, they may not even notice if the price is later reduced, leaving the owner stuck with the property for an extended period. Conversely, failing to know the actual value of your property and setting a too-low price may lead to a quick sale but 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 considers various factors. They analyze the market conditions and compare the prices of similar properties. Additionally, the location, year of construction, and current condition of the property are important elements that the expert examines and incorporates into the valuation. For legally secure market value reports, the relevant documents related to the property are also reviewed to identify any financial or legal burdens. An expert will also check whether structural issues, defects, or land conditions diminish the property’s value.
What role does the condition of a property play in the valuation?
Along with market conditions and property location, the property’s condition is one of the fundamental factors in property valuation. Age, construction defects, or a backlog of renovations can significantly impact the value and lead to a quick depreciation.
What is the difference between a property valuation and a market value report?
The property valuation offered by many agents primarily serves realistic price determination. It considers key data such as age, size, and year of construction. Combined with the expert’s experience and knowledge, a market-appropriate property value is established.
In contrast, the market value report is legally secure. The results hold up in potential legal disputes and are often used for securing or determining a dispute value. In determining the market value, a certified expert conducts a deeper analysis of the entire property, taking into account additional factors such as defects and legal or financial burdens.
What types of reports are common?
Depending on the purpose, agents typically rely on one of four valuation methods:
Classic Property Valuation: This method is frequently used to establish a market-appropriate price based on key data and comparative values.
Market Value Report: Since this report holds up in court, it is used for legal protection or to establish a dispute value for legal proceedings.
Value Assessment: This method aims to estimate the replacement value of a property. In other words, it calculates the costs of recreating the property in its current condition.
Income Value Assessment: This focuses on the income a property generates, for instance, through rental income. It is particularly interesting for potential buyers looking to continue renting the property.