It is said there are only two kinds of property-value statistic – the kind you look up and the kind you make up! To devise a realistic selling price for your home you will need to examine the former and guard against the latter.

Using Comparables

Relevant Local Values

The market cost of property similar in size and age to your own, in the same road or closeby, will have a major influence on the value of your home. These are the ‘comparables’ used by estate agents to quantify property prices. To accurately assess local trends you should:

• Invite at least three local estate agents to inspect your property and obtain from them a value opinion (ensure that the agents concerned advertise this service free and without obligation).
• Visit local agents (or get a friend to do it for you if you have recently done the above) and gather together as many detail-sheets as possible of comparable property in the vicinity. Keep all the brochures you obtain as you will need them again later (see Chapter 6).
• Examine local newspapers over a period of at least a month for the advertised sale details of property similar to your own in the neighbourhood. You could also examine past copies, which are usually available at a local library.
• Walk around the area and identify any properties comparable to your own that have for sale boards erected and obtain details from the agent advertised.
• If you have Internet access visit the Nationwide national house price calculator at www.nationwide.co.uk/hpi/calculator.asp – which will assess the approximate current value of your home by adding the average regional increase year on year from the date of purchase. This has been tested by the author using several properties as examples and has been found to be extraordinarily accurate.

Upon completing this research you will have a number of property values from which you should choose six that closely match your own in terms of size, location, the number of bedrooms, age and condition. From these you can now record three figures:

Contrast these with the figures supplied by agents providing you with valuations. How do they compare? The agent’s figures may be more reflective of the current market situation, particularly if it is a buoyant up-and-coming region of town where prices are rising rapidly. On the other hand estate agents always over-value in the hope of attracting new clients and also to encourage growth in local house prices, as a result of which their percentage-based fee will also gradually rise. But remember that it may be unusual to achieve the actual asking price at the point of sale.

If the margin between the highest and lowest figures above is only slight then you can safely aim just above the mean average as a competitive target value for your home. However, if the disparity is significant then a closer examination of other influencing factors is warranted.

Adding To The Value

There may be elements amongst the higher-priced group that are influencing the price. Examine the details to assess whether they:

• are positioned amongst other well-maintained and attractive homes
• are in an area which is locally known to be in high demand
• have a garage
• have a larger or landscaped garden area
• have a master bedroom with en-suite bathroom or shower
• have a conservatory that blends rather than contrasts with the architectural style of the building
• are south-facing or are an end-terrace or enjoy improved views due to the location on the road
• have full upvc double-glazed windows designed to be in keeping with the style and age of the property
• have a newly fitted, modern kitchen with quality fittings and appliances, or a fully-tiled bathroom with up-to-date suite and separate shower cubicle
• have an alarm system and exterior security lighting
• are well maintained and have been newly decorated throughout.

Compare your home with the above list. The greater the number that apply then the higher up your property should be placed in the valuation margin. Consider too that some elements can detract from the value. These are likely to include:

• a property in a poor state of maintenance and repair
• a badly designed extension that causes the property to appear incongruous with others in the neighbourhood
• a conservatory or extension that has taken up most of the available garden space
• a property with one or more rooms that are internal, ie with no exterior wall or window for natural light – many recently built city apartments suffer from this and it is worthwhile exploring how practical it would be to remedy the situation
• an old fashioned and outdated kitchen or bathroom
• the lack of a secure garage or the space to build one
• a property close to a railway, a motorway or busy road, fast-food outlet, factory, school playground, or similarly detrimental location.

Taking all of these into consideration you should now be able to finalise a realistic and exact valuation. Write this down together with notes to remind you how you arrived at the decision. Bear in mind that the results of this exercise may only be relevant for a short period of time, particularly in a buoyant property market. You should reappraise local prices at least once every three months to test the validity of your determination.