How to Prepare for a Valuation
The usual valuation carried out by an estate agent is a market appraisal, a specific type of valuation where the agent values your property specifically for marketing purposes. It is different from an insurance valuation, which estimates the price of rebuilding, or a bank or building society valuation, which is for lending security.
A typical estate agent’s market appraisal visit lasts about an hour, but will vary depending on the size of your home, how many questions you have, and how thorough the estate agent is. Try not to rush the process, as it is a great opportunity for the agent to get to know your home, and for you to get to know them.
Choosing an estate agent to do your valuation
- It is usual to invite two or three estate agents to provide a market valuation. It is absolutely fine to stop at one valuation if you feel that the first agent to call around offers everything you want. Equally it is acceptable to ask every agent in your area until you are happy with one of them.
- Many valuers are paid per instruction – they are committed to getting your business, but they may not have a genuine vested interest in selling your home. That job may go to another individual or team.
- In many cases the valuer will not be the person who writes up the property details, takes the photographs or directs the photography, answers the phone to a buyer, follows up on enquiries, or chases the solicitors.
- Try to find out about the whole team who will be working on your property, and who will be looking after you day to day. Will everybody in the estate agent’s office visit your property? Will enquiries be answered by an outsourced office service?
- Remember that the most knowledgeable agents may not be the most experienced, and the most experienced may not be the most knowledgeable.
- Comparing marketing strategies is a useful way to differentiate between estate agents; the most charming or enthusiastic agent may not offer the best marketing reach or quality, especially online.
- Would your property benefit from a nationwide marketing strategy? Will the agent you choose provide this?
Before the estate agent’s visit:
- There is no need to make any special preparations for the valuation visit. Most estate agents (unlike most buyers!) can see beyond any mess or clutter, or grass that needs cutting.
- Think hard about the price you would realistically accept. The duty of an estate agent is to get the best possible price for your home, but they are far more likely to achieve this if the asking price is realistic from the outset. An overpriced property may stick on the market and get a bad reputation. On the other hand, an undervalued property may attract lots of viewings, perhaps some competing offers, and could even be sold at above the asking price.
- Remember that when you look similar properties to check their prices, you can only see those which are publicly visible, and you can only see the marketing prices. Estate agents can look at Land Registry data and see all the properties which have sold and the actual price they sold for.
During the Valuation
- Valuers will take into account the price you paid for the property when calculating its current value. If you have made any significant improvements to the property since you arrived, or if the price you paid was not full market value, be sure to inform them.
- If there is work to be done, be scrupulously honest about what you are likely to achieve in the short term. For example, don’t say the bedroom will be carpeted or the exterior will be painted if this may not be the case.
- It is important to be realistic and objective about your home. Most of the factors which influence its value are out of your control, and out of your estate agent’s control too. These include size, location, and the current state of the market. At the end of the day, your property is worth exactly what somebody is willing to pay for it.
- Notice how well the agent has researched property values. Most estate agents use online tools to select comparable properties, such as those on Rightmove and Zoopla Pro. These can be run off in two minutes. Have they extended the search area beyond your immediate postcode and examined prices for more or less bedrooms, with gardens like yours, sold prices, fall throughs, withdrawals, and price reductions for similar properties?
- Beware – many estate agents will flatter your property and suggest a higher price than it is worth, in order to attract your business. This is a common strategy, all the more so when there is a shortage of stock for sale. We recommend that you carry out your own independent research into local prices.
- You might like to ask the valuer for their advice on preparing for viewings – do they offer good advice on strategies for staging your home, minimizing buyers’ concerns, and maximizing the price?
For more advice on selling your home, please give me a call on 07891 718211.