As well as property size and location, when valuing a property, estate agents will take into consideration:- Market reports
- Local knowledge, including micro markets
- Knowledge of previous sales and current demand in the housing market
- The quality of decoration and workmanship around the property
- Development opportunities or unique features
A selling agent should always be able to explain how they’ve come up with their valuation and give examples of what comparable properties have sold for.
It can be tempting to blindly choose the estate agent who’s given you the highest valuation. After all, you want the best price for your home! But if a property is priced too high for the market, it won’t sell. The longer a home is on the market, the more likely buyers are to think there’s something wrong with it, and the more likely you are to have to drop the price. An agent should also take into account their knowledge of active buyers in the market; at the end of the day they are the ones who have to be persuaded to pay up! An over-ambitious valuation, although tempting, deters buyers from coming to view, prolongs a sale process and almost always results in a lower selling price.
- Courtsey of struttandparker.com