How Properties Are Valued
27 May 2016
It is interesting to discover how much a property is worth based on the say so of estate agents, and it would be good to consider it on Prime Property. The Telegraph Online features an article about the estimation estate agents undertake in order to determine the price of a home.
There are five aspects mentioned in the article, provided by Matthew Cooke, the regional director at fixed-fee estate agency YOPA. The first of these aspects in local amenities.”One of the major factors that can drive up the price of a property is the actual area it’s situated in,” Matthew mentions. This is true, as prices of homes in some boroughs of inner London have rocketed into millions of pounds due to good transport links, schools and parks. But Matthew points out that there are also other considerations. ”People talk about the ‘Waitrose effect’ – what that means is that if there are lots of upmarket shops and restaurants around, it naturally means the demographic of that area is more affluent,” he continues. ”To put it simply – premium brands tend to be in premium locations. And that means houses nearby are more desirable.”
Another aspect is personal factors, which are to be taken into account. Matthew makes note of improvements being made to a property will drive up the value, making comments that it doesn’t mean just affixing luxury additions such as a swimming pool or personal gym, but even something as simple as keeping period features will help a higher valuation.
Mr Cooke also talked about the aesthetics of a property increasing its worth.”Houses that are close to water always achieve a little more,” he says.”Just as hotel rooms with a sea view cost more, so it’s generally true that houses close to the sea, a river or a lake do better. And if there is no water nearby, the same goes for any property with a great view… whether it’s the rolling Yorkshire Dales or London’s Hyde Park.” Generally, a room with a view hardly goes amiss in today’s market.
The fourth feature is a property’s potential. Looking at how a property can be improved adds to the value, for example converting a loft into another bedroom. But it doesn’t just stop at a property’s physical appearance.”Even in traditionally grittier neighbourhoods, evidence of developers moving in, of new shopping centres being built nearby, or of improvements like the Crossrail project in London all drive up prices significantly.”
The final factor discussed is the ambience of the home. Yes, it sounds cliché, but as Matthew remarks, ”people who have put down some roots in a property generally look after it more – and something as simple as that can help raise the price. A house that’s been loved and cared for will always be more attractive to any buyer.”
So there you have it; some of the important aspects can make the difference in the total value of a property, whether you are a budding buyer or a potential seller.