Three Proven Approaches to doing your own Property Valuation

Although property valuation seems to be a simple undertaking, it is complex. That is, valuation is multifaceted and it involves multiple factors and actors. Consequently, while estate agents can provide a guide to what your property is worth, a chartered surveyor must carry out a reliable independent valuation. Most valuations that are performed by estate agents or quick house sale agents are not reliable especially in terms of accuracy and reliability as they are mainly based on theoretical approaches.  

Theoretical approaches to Valuation
There are three theoretical approaches in determining the value of property. These make it possible for just about anyone to value property even though the valuation may not be admissible in cases where you are considering going for financing options such as loans and the like. These approaches are:

  • The comparable sales approach – Here, the value of property is estimated based on comparisons with similar property that have been recently sold within that a particular location. This approach is applicable only when there is proof of previous sales. It is common within the residential property market as it reflects the real market prices. The only downside of this approach is that it fails to state whether the investment will be profitable or not.
  • The cost approach – With this approach, the value of property is reached by including the value of land to the depreciated value of numerous improvements. It is only reliable when applied on newer property while less reliable when dealing with older property.
  • The income approach – This is where the worth of property is estimated on the basis of future income projections thus focusing on how profitable the investment will be. Even then, the disadvantage of this approach is that if fails to take into account comparisons to the market.

Overall, it is important to keep in mind that there is no particular method of determining the value of property that is perfect because demand and supply often determine the price of property.

House buyers can be put off by not having off street or private parking facilities

This is one of the factors to affect house buyers . Off street parking, allows the residents to avoid congestion and parking charges. these facilities reduce the rick of vehicle crime. The subject of parking around and in major towns and cities, is talked about by politicians and debated about regularly in dispatches. garages and private driveways prove an asset to thousands of people every year, by reducing motor insurance premiums. These additions to the property, can add thousands of pounds to house prices throughout the UK. They attract more prospective buyers and viewings. if you don’t live in a property that doesn’t have off street parking or private parking facilities, don’t be upset to find similar houses in the street, with these facilities reaching a higher price than your own property valuation.

Property prices could be reduced by congestion measures and for those without garages

Newcastle upon Tyne in 2006, became the first council in the UK to tax residents in the area who park high emission vehicles. Other charges, such as congestion charges, together with parking charges could increase the cost of having the luxury of a motor to record levels. Homes without private parking, could carry a new expense for the motorist. Leeds have recently introduced the scheme also. Property experts, believe that, if parking permits come into effect and rise, properties that do provide driveways or garages, could see a rise of a predicted 20 percent to market values. Houses my be left behind in the solf house prices. This is leaving house owners worried about the future.

In Newcastle cars are in a grading system for their size with SUV’s or 4 by 4’s costing the most to park. Each car requires a permit. families with grown up children at home, who own their own cars . These families who have more than one car, may find themselves, if this is passed with huge additional permit bills. Buyers will be put off in a big way, to acquiring property that doesn’t have off-street parking, effecting house values. High on the political agenda is carbon emission cuts. It won’t be long that this scheme may be rolled out in the UK to other major cities.

Vehicle crime and UK house prices

Official statistics published by the home office, reveal that only seven percent of all car thefts are from a private garage. Sixty six percent of vehicle thefts are committed from cars on driveways, that are more easily accessible for criminals, especially if vehicles are parked on the public streets.

A lack of a garage or driveway to a property means, it may jeopardise or delay the house sale. Properties that do have these facilities, such as a garage or driveway, will prove more popular in the selling market and may claim a higher house price when selling. Car owners, it has been proved are happier about security for their vehicles if they can be parked on driveways or housed in garages, not on the public road. To be nearer their home reduces the risk of car crime. They are willing to pay a higher premium for a property that fulfils this.

Insurance costs may be higher for properties without a private parking facility. nsurance companies state, that they prefer , cars to be on private property. Premiums may be reduced annually for cars that are housed in garages overnight.

This difference may also be subject to a difference in property values

If you are trying to sell a home, without a garage, it is more difficult. An attached garage is a bonus, even an identical house for sale in the area without a garage may not reach the same price. Motorists are willing to pay an extra premium for a house with a garage.

Properties without a garage, or private parking are at a disadvantage sale wise. Sellers may be disappointed , by how much the price has dropped, and the house valuation is significantly decreased. To rectify the reduced price, it may be possible to install a garage. If this isn’t possible, a reduced offer must be accepted and a fact.

12 Reasons You Can’t Sell Quickly

There are lots of factors that can reduce house values. We will concentrate on 12 main, negative factors, which may affect house values

Negative factors

To sell your house, and to achieve the highest sale price, means avoiding negative factors that may hinder this. there are certain issues which negatively affect house values. This results in lower sold house prices. We have listed 12 factors, that may decrease the value of your home. it is not always possible to alter or control these factors. There is always an element of luck involved, in selling property. Why one property sells and another on the same street may not. According to some sources, like industry lead will give you positive factors which affect house prices.

Let’s look at 12 main factors that can affect house values.

1. Nuisance neighbours – house values greatly reduced

A survey by the Halifax, significantly identified that living next door to ‘the neighbour from hell’ commonly classed as a nuisance neighbour, could reduce average house values. the survey states that the average reduction in house value, could be as much as £31,000. Problems associated with nuisance neighbours, include intimidating residents, causing excessive noise, carrying out criminal damage, creating graffiti and most of all, giving the area a bad reputation. Potential buyers, may not even view property in these ‘bad areas’ and housing estates. Nuisance neighbours and anti social behaviour do negatively affect house values in the UK.

2. Home improvements that haven’t had the required planning permission- can also reduce house values

It is an important part of any home improvement, to research and find out if planning permission is necessary, before work on a property commences which is especially true if you want to sell your house quickly. Planning permission is a requirement for most house extensions. There may be a few exemptions. it is a good idea to visit Government planning portal website for advice. Staying on the right side of the law, means that you should enquire at the local planning department as-well, to make sure your home improvements can be proceed-able.

To rectify illegal improvements, by way of demolishing of further alterations can be a costly unnecessary expenditure. Doing the job correctly, researching and contacting the appropriate bodies, can produce the desired home improvement. Illegal extensions and some home improvements can jeopardise and have an impact on the selling price. Think carefully about where and how home improvements are implemented.

3 Schools in the area

Schools that are performing badly, can deter buyers. Especially if they are are parents with children of school age. OFSTED reports can be viewed freely on the internet. Poor results of under achievement of schools in the area, can be a put off some house buyers in the catchment area. The Royal Institution of Chartered Surveyors however, reports that if homes in the catchment area hold favourable OFSTED reports, then there is 8 percent increase in sale prices , more than similar homes in other areas.

4. Crime in the area – Will anyone want to buy this property?

It is very easy to check reports on property sites, that highlight crime statistics. These are freely available and given by the local police. Crime rates can affect local house values. Areas that have a higher rate of crime, can be identified. Potential buyers steer clear from buying property in these ‘crime ridden areas’ without even viewing for a potential new home. Neighbourhood Watch schemes and the like are an increased security measure. This tries to control the extent of crime, to produce a better area and neighbourhood, to attract new house buyers and families to the area.

5. Distasteful history – Does this reduce the price of your property?

There are some things that can’t be changed, regarding your property, like its history. If your home was the crime scene of a grisly crime, its reputation is unchangeable. As an example, we list the case of home 23D Upworth Gardens in Jackson Hill, which was listed for sale in 2014 for £230,000 The value of the home of murderer Dwayne Noosen, who slaughtered his victims has been affected by its recent home sales. Recent home sales at the time were £325,000. If you find out that your home has a history with an unsavoury past, your home could be de-valued.

6. Living on a known flood plain can lead to lower house values

Buying homes on known flood plains will cause very high insurance premiums. Because, they will be prone to flood damage. This can affect the value of your home dramatically. Some buyers, may become very worried about facing expensive building premiums. or face the fact that home insurance maybe refused.

7. Mobile mast, electric pylon ,or new developments – the consequences

The house value can suddenly drop in value, because of unplanned developments in the area. An instance of this could be, the erection of a mobile phone mast, a new electricity pylon in the area. This can have a negative affect on the price of homes. Although you could petition against them, generally this makes little difference to new developments that have been given the go ahead by the planners

8. Pets and property – These may lower the value of your home

We all love our pets. But they must be looked after carefully. Owners don’t always notice or become immune to mess and disruption caused by pets to the home. Even smells, which can put prospective buyers off. Or aggressive , dirty or smelly pets. this could alienate certain people viewing This factor of ‘smelly pets’ could reduce house value and influence a buyer to look elsewhere. To stop this, and maintain your home’s value, on par with other houses in the same street, so to speak. Ask your friends or relatives, to mention and state if any pertinent and undesirable pet smells or odours are in your dwelling place. Maintain your property and banish undesirable pet smells, they could restrict a house sale.

9. Niche home improvements, should be middle of the road

Fashion and home improvements vary and diversify throughout the decades. For instance stone-cladding on the exterior of your property, may have seemed like a good idea a few years ago, times change. Niche home improvements can possibly alter the house value of property. House buyers, may be alienated, and this may have an affect on selling the property. potential buyers, need to visualise themselves living in the property. Neutral colours should be used, so that buyers can move straight in without spending more money on changing the décor. This will achieve a higher final sale price.

10. Property maintenance – Poor exterior, in a state of disrepair

‘Kerb appeal’ is a very popular term used amongst estate agents in the UK recently. It states, how important first impressions are. Positive impressions should be created to be impressed the moment they arrive. ‘Your home is your castle’ as they say. If yours has fallen into disrepair, it can affect buyer’s interests in the property. if you look on Zoopla or Rightmove, it will become clear , that houses that have become stagnant and not moved on the market for a while, are sticking because they are badly kept and don’t have ‘kerb appeal’

11. Proximity to wind farms and property prices

A recent article on the Telegraph website, suggested that new wind farms are reducing local property prices, by up to eight percent. Although, there is a call by political parties and environmental bodies to increase wind farms. Property prices maybe on a downward spiral , causing a drop in property price and value.

12. The lack of off street private parking facilities

Parking your car on public roads overnight can increase a person’s car insurance premium. Not having a driveway, or garage may make potential buyers think twice about purchasing. reducing the value and demand for your property. factors that affect buying or not buying a property can be diverse and variable. There are no rigid rules for successful selling and change all the time.