True Market Valuation
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Valuation tips: If you are considering the prospect of selling your house to a cash buyer, assessing the true market value of property is one of the most important tasks you will have to perform. However there are now various online tools available to you in order to carry out your research. The sale price that you are prepared to offer to an investor should be based on the reasonably accurate results of this research and assessment. Get it right and your house will sell quickly and remember that cash buyers have already got the funds approved and in place so do not have to waste further time looking for a mortgage and they do not have to rely on selling another property before they go ahead.
However any deal will be subject to valuation by a chartered surveyor so this is the reason why the true market value needs to be reasonably accurate. As a guide, cash offers tend to be at least 25% below the true market value. However there is a significant saving on costs. See our cost comparison page for full details.
Investors need to decide whether the discounted price of the property reflects sufficient discount from the current true market value to make it a profitable investment. Most investors will be backed by financial institutions that will only fund up to a certain percentage which varies according to the current bank rate and economic climate at the time therefore the success of any deal will be dependant on this percentage Below Market Value.
Please be careful when inserting the market value as there is often a large difference between the asking price for a similar property that is on sale and what it actually sells for. Investors interested in buying your property and surveyors checking its value will use actual house price sales data that is available from the Land Registry so there is no point in trying to inflate it in the hope of achieving a higher offer
Estate Agents: A good valuation, however, is not what your local estate agent tells you. The asking price an Estate Agent recommends is often over inflated because of their desire to appease the seller in order to win an instruction. It is a common misconception that Estate Agents value property for home sellers. Agents simply guide them to a suggested asking price and they can not be relied upon to provide objective and accurate valuations. However Estate Agents may encourage a seller to accept a below market value offer after the property has remained unsold for many months in order to secure a quick sale (a high turnover is much more profitable for an agent than a small increase in the selling price).
The factors influencing the value of property include the property features and its location, social institutions in the area; wage levels; tax codes; and also future building zones and the environment. It does however make a difference whether a flat is in Sheffield or Harrogate, whether the next good school is two or ten miles away, or whether it is a 12th floor flat with a view onto Buckingham Palace or a basement flat in Hackney.
Remember independent property valuations are only performed by RICS chartered surveyors.
Since you cannot be sure about the Estate Agent's motivation and whether the price is above or below market value, it is recommended that you perform some research to arrive at the true valuation.
How to determine Market Value: Arriving at the true market value of a property is a complex issue where many factors have to be taken into account. We recommend that you use the following tools in your research.
Nethouseprices.com provides all the recent house sold prices in your immediate area. This is taken from accurate Land Registry data and covers the registers of England, Scotland & Wales.
Mouseprice.com provides a valuable tool for any home seller wishing to obtain a reasonably accurate property valuation.
Zoopla.co.uk offers you estimates based on various area factors.
One of the major factors that contribute to buyers pulling out of a sale is that they can not get a mortgage for your property at the price that you are asking because the lenders surveyor has not valued it up to what you were wanting. This can lead to you losing a sale and perhaps the other property that you were wanting to purchase. The lesson is clear, get the valuation wrong and it can cost you dearly in the end.
All of the subsidiaries of Ronan Property Services offer you a reasonably accurate report on your property including sold prices and lots of other data including length of time that properties are on the market in your local area before being sold, number of viewings etc that you can print off and show as evidence to any enquirer, valuer or in support of loan facilities etc. The report is a close analysis of the local postcode area, average prices for different property types. View a sample report and ensure it includes all the information you require before you decide to sell or buy. It can save you many thousands in fees as it is accepted as highly credible in the industry.
Now you can get the property that you may be considering selling or buying valued with the same valuation system used by mortgage lenders at a special discounted price of £25.00 (usual price £29.99). Click any of our property buyers sites below for a comparison of costs and to Buy a Report
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