Valuing houses – what has the greatest impact on property value?29/03/21
When it comes to valuing houses, the structural condition is key. If a house is just in need of a touch of TLC, this does not impact the value as much as you might think. For example, repointing and replacement of a few roof tiles is fairly immaterial when it comes to determining market value.
Equally, where a homeowner has put in large amounts of time and money to make sure their house is in perfect condition, they may be disappointed to find that they won’t necessarily make their money back when it comes to selling. At the higher end of the market especially, we often find that a new homeowner is keen to put their own stamp on their home and will largely want to disregard how much the previous owner has spent on it.
When it comes to selling your home, although it is hard to add significant value, there are easy steps you can take to prevent the value being decreased. These include having a neutral décor, making sure the kitchen and bathroom suites are modern and having tidy parking and gardens, along with a usable garage space.
Location, location, location
Like most clichés, it’s true. Location is a major factor when it comes to value. For example, a stunning home with a perceived ‘less desirable’ post code will not attract the same value as an identical house in a ‘more desirable’ area even though they may only be three or four miles apart.
Similarly, the situation of the house is really important too. A beautiful big house in great condition, with upwards of five bedrooms but which has no garden to speak of, no garage and only a small drive and is located on a main road will not achieve the value that a similar property with a good sized garden, plenty of parking and more privacy will realise.
Expectations of particular house types have an effect too. A small, terraced house, located in a town centre, would not have a discounted value if it just had a little courtyard. However, a large detached property in a rural location would be discounted if it did not have a reasonably good sized garden. This even applies to smaller, terraced property in villages – buyers expect a garden in more rural or village locations.
Bungalows still attract a premium when it comes to valuation. We can never say precisely why this is but it may be down to the fact that they generally attract older buyers. These buyers often have more money they are willing to spend and they are more likely to be cash buyers. This means they are not reliant on mortgage funds and the corresponding mortgage valuation.
When it comes to commercial property, location is still very significant when it comes to value. A retail unit in an obscure location will not achieve the same value as one which has plenty of passing trade. Commercial property is an investment opportunity so finding and keeping a tenant is vital. A commercial property with a sitting tenant, on favourable terms, is highly likely to attract a slightly higher value than a vacant one. With agricultural property, it is generally better to be owner occupied. Older agricultural tenancies can be very prescriptive and do not usually offer much of an investment prospect.
With offices in Shropshire and Staffordshire, Forge is a member of Royal Institute of Chartered Surveyors (RICS) and a Fellow of Central Association of Agricultural Valuers (CAAV). Valuations are an important part of our business and we are highly experienced across a huge range of property types. Whatever your valuation requirement, contact us to find out how we can help you.