I live in the United kingdom, so I know that the question: How Much is My House Worth can be difficult to resolve.
The fact remains a house is only worth what a purchaser is willing to pay. The question is, "if I'm not on the market and actively trying to sell the property, how to i find out the value of the property in the absence of any real offers from any real buyers?"
It's the same with almost everything; a piece of jewellery can be valued at £2,000 for insurance purposes, but it may fetch nowhere near that at market, and even less in a pawn shop. It is even more difficult when it comes to valuing property because there are many more factors to consider, as will be explained below.
But, How Much Is My House Worth? There must be a way or ways to at least get an idea? You're right, there are:
Obviously you could just ask 3 estate agents to come to your house and value it. The problem is that estate agents are wel know to inflate the value of a property in order to win instructions. That's fine however, unless i have my own idea (and logical theory) as to how much my house is worth, I am not going to be able to challenge the estate agents' figure.
The growth in property prices in 2009 showed us that short supply of property and particularly of good property in a good area, can cause houses to sell for more than their current value according to national and regional indices. So to answer the question how much is my house worth; I would need to roll up my sleeves and do a bit of pavement-pounding.
Online is certainly the easiest play to start investigating property values. I had heard that the Nationwide and Land Registry allow people to find out how much homes in your locality are selling for.
In attempting to find free online house valuations, my first step ended up being to examine The Land Registry data available. This informed me as to how much homes in my area have been selling for since 2006, including a breakdown by property type. Next I visited the Nationwide property value calculator and used it to see the change in value of property in my area over time.
This quick bit of research provided me with a really good starting point, but for the true answer to the question of, "How Much is my House Worth?" I sitll needed to hit the streets, the estate agents, as well as online portals, fully understand how many properties like ours there are for sale. When you attempt this little research exersize, pay particular attention as to whether there's a shortage of supply for your kind of property. If your property is particularly unique and on one of the premier roads in your area, then you can afford to ask a little more than the local average. On the other hand, if you need to sell property fast and have an average property, which has lots of competition will need to be priced at either the local average or lower in order to find a buyer and as such have any value.
How Much Is My Property Worth?
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