The art of Valuing in 2022
Ever wondered how we appraise your property?
You’ve heard the saying ‘a property is only worth what someone is prepared to pay’. There is an element of truth to that of course, however how do agents actually reach a figure that they think is a realistic appraisal of your property?
First of all, the most obvious is to look at what similar properties have been selling for locally in the past 12 months and identifying a trend or pattern of those selling prices (which may differ from the actual listing price).
Next we have take in any unique selling features which may be present in one home but not another and factor this into whether this would increase or decrease the likelihood of the property in question receiving offers higher/lower than its comparables.
Another factor would be the fluctuating market, which is as buoyant as its ever been thanks to the abundance of first time buyers and lack of homes on the market creating a classic supply and demand scenario. Lack of property = higher prices.
Homeowners absolutely have the right to ask for the opinions of multiple agents when it comes to valuing and listing a property for sale. What is becoming more apparent during this COVID era however is just how far some agents will go to win that prized instruction often to the detriment of the person they are trying to impress – THE VENDOR. Overvaluing of property seems to be prevalent and seen as key to winning an instruction, the agent is then left with a property sitting on the market getting stale during the first 2 weeks of marketing which is traditionally when most interest arises. The Vendor is tied into a long term contract preventing them from switching agents and being forced to reduce the asking price to al level which in all honesty may have been already recommended by another agent in the first place. Sure, the property will eventually sell albeit months after it could have.
Personally I would love to see a ‘Put your money where your mouth is’ approach. By all means if an agent truly believes they can sell your property for the figure quoted they will have no problem agreeing to a short ‘tie in period’ leaving the Vendor free to explore other alternatives if a sale cannot be agreed within a designated timeframe. Given the strength of the market at present this should not be considered an unreasonable request.
• Average house prices rose by +7.4% in 2021, after a 4.2% increase in 2020, taking the average house price to £242,000
• Wales continues to lead with highest price growth at 11.3%, while London registers price growth of 2.6%
• Buyer demand surged over the New Year, and supply remains constrained, although initial signs that this trend may be turning
• Levels of buyer demand have reached new highs for family houses and flats in the first weeks of 2022
• Price growth will moderate throughout the year amid increasing economic headwinds – we forecast that values will rise by +3% on average in 2022
The above is an excerpt from the December 2021 index of the Zoopla Research and Insight on house prices.