How Do You Know If A House Is Valued Correctly?

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Whether you’re buying or selling a home, ensuring you have an accurate property valuation is nothing short of an absolute must. After all, in any transaction, when everyone has accurate information at their fingertips, it’s easier to move forward, minimise risk, and make informed decisions. If you’re selling your home, you want to ensure it is valued correctly to help ensure it sells as quickly as possible. Unfortunately, simply asking What’s the value of my house? isn’t going to get you an accurate estimate. Neither is simply typing terms like “check my house price” into a search engine.

Sellers, though, aren’t the only ones who need a house value checker. If you’re buying a home, making certain that the property you’re buying is valued correctly can help avoid any potential problems when you go to obtain a mortgage. How to value a house in the UK properly, though, can be tough. It can be particularly hard to better understand what goes into house price value. Knowing these tips, though, will have you looking at house price valuations differently.

It Starts with a Look at Historical Pricing Data

Whether you’re asking yourself How do I value my property? or you’re wondering Is the valuation of the house I saw listed is accurate? One of the single best ways to check is to examine historical pricing data for a given property. The selling price for every property that has ever been sold in England and Wales is recorded in the HM Land Registry. After the conveyancing process is complete on any sale, it is registered through HMLR, and this information is a fantastic starting point if you’re trying to find the value of a house from any perspective. It’s important to note, though, that HMLR records aren’t necessarily a great indicator of the “right now” price for a house. Instead, there are about six months between the offer on a home and its registration, so the house price valuation you’ll get here is just a record of sales from a few months ago. If you do type “value of my property” into a search engine, you may come back with HMLR records, and if you plan to use those, be sure to search for similar properties that have been sold on your street or in your immediate locale. Try to limit your search to what has happened in the last 12 months, but if that doesn’t work, feel free to range back a bit further.

Consider the House Price Index

Another way to get property price advice is to use the House Price Index. This data is published by Nationwide, and it offers a slightly more updated picture of the regional price variations in data. As compared to using HMLR data, asking something like What’s my property worth? here will result in a more updated answer. There are many ways to search, including a built-in house price index calculator on the site. The only problem with using this to complete the valuation of your home is the fact that it’s only regional data. Instead of showing actual house valuation prices, it shows the monthly percentage that house prices are changing. It’s a bit like a house price increase calculator because you’ll see how things have increased (or decreased) over time.

Don’t Overlook Changing Property Factors

As you work to estimate house prices, particularly if you’re the seller, you don’t want to overlook the number of factors that can affect a given property’s value. There are several local factors including crime rates, school catchment areas, the risk of flooding, and local transport links that impact the value of a property. You may want to use things like a subsidence risk postcode checker to better understand the value of the property and what’s impacting it. Keep in mind that factors about the home specifically can impact the value of a property, too. Things like its size, modifications, and energy efficiency all play a role in the valuation of house prices. Valuing a house changes significantly if you check the value of a property over time because those kinds of factors change regularly.

Get a Professional Valuation

If you want an accurate picture of house price valuations, you’re not going to get a Zoopla online valuation or type “value my property online” into a search engine. The simple truth is that a house value calculator by postcode online or that house valuation calculator you found on a mortgage company’s website isn’t as accurate as an actual valuation. As a result, an independent valuation is the only thing you can legally rely on. These can cost less than a hundred pounds, and they’ll help you truly determine the value of a home.

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