Whether you’re trying to sell your home or you want to ensure your buildings and contents insurance cover is enough, understanding the value of your property can be key. What affects the value of your property, though, and how do you even begin to find that number?
Knowing the answer to the question “How much is my property worth” can be important in a number of different situations.
The Factors that Affect Your Property Value
While many people believe property value is a fairly simple equation based on lot size and square footage, the simple reality is that it’s far more complex than that. Housing prices are constantly shifting, and so is the value of your home. Over the past ten years, housing prices have shot up nearly 10%, and those shifting values mean a real impact on your overall property worth.
A changing property market, though, isn’t the only thing that affects the value of your home. Location can also change the value of your home. UK buyers want homes in desirable locations, and that means that if you have a home in London and the very same home in the West Midlands, you’re going to see two different prices with London being the higher of the two. Homes in London are far more valuable than they are in other places, so those prices will always be quite a bit higher.
Proximity to good schools and public transport access can also affect the overall value of your home. Good schools mean a lot to parents with kids, so many actively seek out great nearby schools associated with a property. For you, that translates to one simple fact – great schools equal great property prices. Similarly, public transportation access can also raise your overall property price. Thousands of people use public transportation every day to get to and from work and activities as a whole, and the closer you are too good transport hubs, the more valuable your overall property price.
Home Size is still a fairly obvious factor, though, despite the idea that all of those other things can affect home prices as well. People want bigger and bigger homes on a regular basis, and it shows in property prices as a whole. Generally, the larger the home, the larger the overall price tag, which is what makes it so hard to get on the property ladder for so many people.
Deciding the Value of Your Home
Now that you know what can affect the value of your home, how do you find the actual value? There are a few different ways to do so. You can start with some research on your own. By using sites like Rightmove and Zoopla, you can typically get a fairly good estimate of what your home might be worth based on those of similar size in the neighbourhood. Most of this data is also available through the Land Registry.
If you need additional information, another good way to get it is to work closely with an estate agent. Because they often have their finger on the pulse of property prices in the area, an estate agent will be able to take one look at your home and let you know what it’s actually worth. Often, however, once they’ve done so, there are usually some high-pressure sales tactics to get you to list your home with them.
The final option is to work with a professional valuator, and this has many benefits. First, if you’re planning to sell your home, often buyers want to know exactly how you arrived at your total sales figure. If you started the process by taking a professional valuator, you can show them the report from the valuator, which may make it far easier to sell your home at that price. More than that, though, if you’re trying to have your home valuated for buildings and contents insurance purposes, a professional report is a good option to have on file so you can show insurers exactly what you lost should something serious happen to your home.
Knowing how much your home is worth is absolutely necessary in many cases. Staying on top of your home’s worth isn’t hard, but it may take some time.
