Common Property Valuation Mistakes

Whether it is increasing the value of your property or working out what the value is, Spring can help. We have written plenty of times before about things that can be done in and around your house in order to improve the value ahead of selling quickly. We also have our accurate measurement of how we value a property when we buy them. But there are a number of common misconceptions that we can help you avoid.

Valuation Is The Same As Price

Valuation and price are two similar but essentially different ideas. Valuation indicates how much a property is worth based on a number of factors; age, location, size, general current market trends etc. The price, however, is simply how much a buyer will pay for it. 

For example, if there is a property valued at £500,000 but there are multiple buyers interested, the price will be whatever the offer that is accepted is, whether that is £500,000, £510,000 or even £450,000.

Renovations Always Add Value

This is definitely not the case. You may be forgiven for thinking that a new kitchen or a bathroom make-over would help notch up an extra few thousand to your property’s value but this is not always the situation. Things such as extensions or larger scale renovations designed to improve the amount of space can go a long way here but it is by no means a guarantee.

Consider that much of the decorations that you may like are subjective. Potential buyers may not appreciate the wallpaper you have chosen or the tiles that were laid down. For sizable projects like replacing these, buyers may be put off entirely as a result. It is important to appeal to as broad an audience as possible. This is why home staging services are becoming so popular as they can craft a carefully put together home that acts as a blank canvas for the potential buyers.

Equally, there are some projects that will add value but will incur such a cost that carrying these projects out would be doing you a disservice. Solar panels, for example, are an in-demand feature of a property due to a strong desire to go green but the cost of installation is often so significant that you then lose any increase when you sell.

Property Value Is Always Going To Increase

If the last 20 years is anything to go on, you should never bank entirely on the value of a property increasing over time. Although property is largely considered to be a good and safe investment, the global financial crisis in 2008 and the recession during COVID-19 both go to show that there is no guarantee here.

While some believe that house prices will increase by as much as 21% next year, and that getting involved in property investment now is a smart way to earn, this is not set in stone.

If you are looking to get involved in investing in property, you should always speak to a financial advisor who will be able to advise you on your best route forward.

The Higher The Value, The Better The Sale

For some people, they may consider quite a simplistic view of ‘the higher the value, the better it is for me’. Thinking about this though, there is a chance you may end up pricing yourself out of the market. If an estate agent would give you a valuation of £400,000 but the most accurate measure is closer to £270,000, you are very unlikely to achieve a quick sale. If it is really overvalued, you may even struggle to get a viewing!

At Spring, we find the most accurate value of your property by having 2 of our experienced Property Buyers and 1-2 local estate agents conduct a survey along with an on-site visit by a surveyor from the Royal Institute of Chartered Surveyors. By getting a wide range of results, we are able to tell you exactly what the truest value of your property is. Getting the truest value of your property is not just useful for us but it is also done for your benefit too.

If The Property Isn’t Sold In ‘X’ Months, It Will Never Sell

Selling on the open market can be difficult, tiring and unexpected. Even in a hot market like today, you can still fall victim to a broken chain, getting gazumped with a better offer or any other number of things causing a breakdown. At times it can seem like there is absolutely no movement at all. This can lead to people feeling anxious about selling and lead them to accepting whatever offer comes their way.

It is possible to sell any house very quickly. Spring, for example, has over a decade of experience in buying properties from people who were looking to sell quickly. We buy any house in any location and we do it in as little as seven days. The risks of having your property on the market forever and not getting any offers can be put aside and Spring can be on hand to help you out. 

To find out how, get in touch with a member of our team today or contact us at [email protected]. 

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