Written by Daniel Latto in Property Sourcing

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July 20, 2023

As Property Sourcers, we see it all the time don’t we?

This house is worth £100,000, but you can have it for £80,000 and it needs £20,000 of work doing to it.

So in other words, the house isn’t worth £100,000 at all.  It’s just a made up number to try and get investors to buy their deal.

But the question is .. how do you know what the house is actually worth in the first place?

How does anyone?

A house is worth what someone is willing to pay for it … we’ve heard it time and time again.

Only – that’s not true either. I’ve bought some seriously good deals on Rightmove that were under valued BECAUSE it was priced wrong and the rest of the market couldn’t see it for what it was.

Obviously that takes experience, but if you have the balls to put in offers on some of those deals, you’ll walk away with a good price.

Understanding the worth of a house in the UK is crucial, whether you’re buying, selling, or just keeping tabs on the value of your property.

So here’s a few ways that may help :

Knowing your market

I use to literally walk up and down the streets to get a feel for my local market, and then I’d go home and check on Rightmove (or back in those days the Yorkshire Evening Post property section) for the house prices and I would get a feel for which way the market is going.

I’d also spot some bargains that I could snap up, and either keep for myself, or package up and sell on to make a few extra grand.

Ahhhh … life seemed so much simpler then didn’t it 🙂

Online Valuation Tools

Various online platforms offer instant online house valuations based on public data. These platforms use a range of data, including recent sale prices of similar properties in the area, local market trends, and property characteristics to provide an estimated value. However, as automated, these online valuations may not consider unique features or recent renovations that can impact a property’s worth.

Nationwide House Price Index

Nationwide, one of the UK’s largest building societies, provides a House Price Index that offers insights based on general price movements in UK regions. While it doesn’t account for factors such as the quality of fittings or decoration, it can provide a general idea of property value changes in your region over time.

Local Estate Agents or Surveyors

For a more precise valuation, consulting local estate agents or surveyors can be beneficial. Estate agents, having thorough knowledge of the local market, can provide a detailed valuation based on their experience, local trends, and the specifics of the property itself. Professional surveyors, on the other hand, can conduct a full assessment of the property, taking into account the structure, condition, and any potential issues that could affect its value.

Don’t get me wrong, I don’t think Estate Agents are the Oracle of house prices – they get it wrong just as much as they get it right.  And thank goodness really, as Ive bought some great below market value deals from estate agents.

Professional Valuation Services

If you require a formal valuation, for example for a mortgage application or legal purposes, you will need to commission a professional valuation. This is a detailed report created by a chartered surveyor, and it’s the only type of property valuation that’s typically accepted by lenders and courts.

Remember, while these methods can give a good indication of what a house might be worth, the actual sale price will ultimately be determined by what a buyer is willing to pay.

The UK property market is influenced by many factors, including the economy, interest rates, and consumer confidence, all of which can impact house prices.

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