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Every homeowner wants to know the value of their property, especially
when it comes time to sell. But finding out the correct asking price is often
hindered by conflicts of interest and inflated expectations.
Most vendors start by inviting a number of local estate agents to
visit their house and provide a 'free' valuation, without appreciating that the
estimate(s) provided can be highly biased.
Homeowners setting their own price naturally tend towards the highest
possible value based on emotional ties to the house and a desire to maximise
profit from the sale of the home.
'House-price' websites offer DIY research into the value of properties sold,
but this is less useful than it at first appears. Information is limited and
difficult to apply to similar homes owing to the lack of comparative detail
provided about the properties listed.
Unfortunately, neither the homeowner nor the estate agent are best
placed to determine the worth of a property objectively, due to personal or
commercial interests.
Estate
Agent 'Valuations'
The commission an agent earns on the sale of your house is directly
linked to the property asking price and hence they have a natural bias towards
higher valuations.
In addition, the practice of 'overvaluation' by agents, in order to
sign up customers, by suggesting that the house can be marketed at a very high
asking price, only later to suggest a drop to a competitive level once you are
tied in to a lengthy contract, remains common.
In their 2005 report on the property market the consumer group
Which? presented evidence that estate agents' valuations can often vary
wildly, in some cases by more than £100,000.
Setting an asking price too high can keep a property on the market far
longer than necessary and it can even create a ripple effect of false
expectations throughout the local property market.
House
price information websites
There are numerous websites offering public access to Land Registry
and Scottish Registry records giving the actual price properties have sold for,
in any postcode.
Knowing how much your neighbours paid for their house can help you establish a
value you can sell your home for, which might suggest that these sites are
useful when researching your valuation. The problem with all these services is
that they do not give you an estimate of a home's current value, only what it
sold for.
There are further limitations, namely that the Land Registry only
covers a fraction of all property in the UK (around 7 million homes) as data is
only available on property transactions since 2000. In addition, the detail on
properties is sparse making it difficult to compare your home with those
listed.
Free Valuation Tools
Launched in January 2008, the Zoopla! online valuation tool provides
fast free and unbiased property value estimates for any property in the UK -
over 26 million addresses - with no need to contact an estate agent.
Try it now using the search tool below ...
This revolutionary site allows accurate estimates of property values
through information gathered from multiple data sources including the
Land Registry (England & Wales) and Registers of Scotland, plus an analysis
of property values for sale and sold in the local area. It is then further
refined with user data provided by property owners themselves and the rest of
the community.
Unbiased and independent appraisals of house values using the most
recent market and private data. The abundant property and value information
provides a refreshing change from traditional estate agent valuations and is
both instant and FREE.
For vendors selling their houses privately on the internet (without an
estate agent) and buyers of all residential property, the availability of
professional grade information gives a great advantage during sales
negotiations.
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