Preparing to sell your home is an exciting time. However, before selling your home, it’s essential to know how much your property is worth and how much you can ask for it. This information is usually determined by an estate agent who does home valuations.
If this is your first experience selling a home, you may have questions about how a home valuation works. So, we’ve put together this guide to help you through the process and learn what to expect during a property valuation.
What is a Home Valuation?
A home valuation is done by an estate agent who comes to your home. They look around your home to get an accurate impression of the property’s condition and layout of the property and consider whether the home has any unique features. When they have all of this information, the estate agent does some research to determine the value of your home.
When the research portion of the valuation is completed, the estate agent provides you with an estimate of your home’s value and an asking price that’s best for the current market.
There are a couple of things to consider with a home valuation:
- It’s best to choose a local estate agent who is familiar with your area and neighbourhood. The reason is that the estate agent will have information about the value of other properties in your area. They can use this information to determine the right value and asking price for your home.
- Don’t use a “desktop valuation” provided by some estate agents. In this case, the estate agent does not come to your property. Instead, they rely on your description of the property and use this information to determine your home’s value. When they have an estimate ready, the estate agent emails you with information about the home’s market value. The problem is that this type of valuation is not accurate since the estate agent didn’t visit the home in person.
So, be sure to choose a local estate agent, one who will come to visit your home personally. This is the only way you can be sure the valuation is accurate. The goal is to have an accurate home valuation and use this to figure out the best asking price for the current market.
How Does an Estate Agent Determine the Property’s Value?
When an estate agent visits your home, they take a look at several factors that are important to a homebuyer when purchasing a home:
- The home’s location
- Local market value
- The condition of the property
- Major works completed (including extension, double glazing, insulation, and more)
- Inside the home, an estate agent looks for standard decorations & fittings
- The potential for future extensions and other improvements
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How Should I Prepare for a Property Valuation?
The best way to prepare for a home valuation is to ensure your home is clean and in good condition. The better the condition of your home, the higher it can be valued, even when the market’s slow.
So, it’s a good idea to consider doing a deep cleaning through the entire house, both inside and outside. Inside, be sure that all surfaces are uncluttered and clean. Everything should be put away. Storage spaces and closets also need to be in good order and not cluttered or dirty. What’s more, everything in your home needs to be in good working order. On the outside of your home, be sure your lawn is mowed, the garden has been tended, and more.
When the estate agent is conducting the home valuation, be sure to point out improvements you’ve made to the property since you bought it. These can be factored in and may increase your home’s value.
The estate agent may also be willing to answer your questions about the selling process, the costs involved in selling your home, and more. It’s helpful to write these questions down, so they’re ready when the estate agent comes for the home valuation.
Questions You May Be Asked During a Home Valuation
Each home and location are different; for this reason, the estate agent must make an in-person to your home for the property valuation. They need to know what the location is like and more.
One of the first questions you may be asked by the estate agent is why you bought your home and what you love about living there. The estate agent wants to see what attracted you to the home. They may use this information when listing your home to target potential buyers who have similar needs and values as you do.
In addition, the estate agent may ask:
- Are you able to move out easily?
- If so, how quickly can you move out?
- Have you already found a property & have you had an offer that was accepted?
These questions help the estate agent determine how soon you can move for a new buyer who may need to move in quickly.
How Long Does a Home Valuation Take?
Most home valuations take about an hour. However, it can last longer or shorter depending on the size of the property.
Do I Have to Pay for a Home Valuation?
The answer depends on why you’re having the home valuation done. For instance, would you like to know your home’s value? If so, the estate agent may come and do the valuation for free and without any obligation.
On the other hand, if you need a licensed valuer to do the property valuation, you will have to pay them. That’s because the estate agent is legally bound to provide the correct information.
Do I Need Any Documents for a Home Valuation?
Most of the time, the estate agent will not ask to see any documents for the home valuation. However, they may ask to see the deed to your property. Otherwise, you shouldn’t need any documents. However be aware there is a list of documents that you will need when you are ready to sell.
Summing It Up
A home valuation is necessary when you’re preparing to sell your home or if you’d like to know how much your property is worth.
The property valuation usually takes about an hour; during their visit, the estate agent may ask you a few questions.
So, a home valuation is pretty easy, as long as you make sure your home’s in good repair and cleaned up (inside and outside) before the valuation is done. When your home’s in good shape, the estate agent can make a more accurate valuation of the property!