Understanding your property’s value

A good valuation considers recent comparable sales, current competing properties, location, size, condition, presentation and levels of buyer demand.

Joshua Bland, Ashtons Head of Residential Sales at our Hitchin office, adds “There’s also good old-fashioned “nous”, something we’ve learnt a lot about over the last 40 years, having completed more than 23,000 local property transactions across the six Ashtons offices in Berkhamsted, Harpenden, Hitchin, Redbourn, St Albans and Welwyn Garden City, means we really understand the intricacies around property values and asking prices”.

Setting the asking price should combine evidence with an experienced understanding of how buyers are likely to respond to your particular home. Valuing property is therefore more nuanced than simply applying a price per square foot.

Valuation is an informed opinion rather than an exact science. Agents may interpret comparable evidence differently or take different views of current demand.

Sadly, an unrealistically high valuation may occasionally be used to win an instruction. The most useful valuation is not necessarily the highest one, but the one supported by the strongest evidence and marketing strategy.

Not on that basis alone. An ambitious asking price can be attractive initially, but overpricing may reduce viewings and eventually result in the property selling for less after becoming stale on the market.

Ask each agent to explain the evidence behind their recommendation and how they intend to achieve the best possible price. That way you will arrive at the right price for your property.

Market value is broadly what a willing buyer is prepared to pay in the prevailing market. The asking price is the figure used to position and market the property.

The asking price may be set slightly above, around or occasionally below the expected sale price depending upon the marketing strategy.

Usually, it is better to launch at a price that creates the right level of interest from the outset.

The first few weeks of marketing are particularly valuable because the property is new to the market. Starting too high can waste that opportunity and a later reduction does not always recreate the same momentum.

There's an old adage that "your property is at its most valuable the day it comes to the market." Also, bear in mind that it will get a “date stamp” on the portals, so buyers will be able to see how long it has been up for sale.

HM Land Registry records completed sale prices in England and Wales, and these can be searched online. Property portals also provide historic sales information.

However, headline figures rarely tell the complete story. Differences in condition, plot, outlook, specification, lease terms and the circumstances of individual transactions can substantially affect value. Also, anything that's published on Land Registry will actually be out of date compared with what might be happening in the market around you when you launch your property for sale.

It can. Buyers often make an emotional judgement very quickly, and a clean, uncluttered and well-maintained home is easier for them to imagine themselves living in.

Presentation will not disguise fundamental disadvantages, but it can improve first impressions, viewing numbers and ultimately competition between buyers.

One very interesting and anecdotal story to evidence this from Steve Fisher, Ashtons Manager at our Welwyn Garden City office: "We had a vacant property in Welwyn village that attracted over 50 separate property viewings without any offers being received. The property seller then invested in having the house professionally dressed, and it was relaunched to the market. That same weekend it sold at asking price!"