What Do Estate Agents Take Into Account When Valuing Your Area?
If you’re looking to sell your home, you may have given a few rooms a fresh lick of paint, improved it’s kerb appeal and fixed small plumbing issues. However, the condition of your home and size, along with other factors, may have a significant effect on the value of your home there are other factors to take into account too.
You might be surprised to find out that even factors such as how close you are to the local park can have an impact.
In fact, those homes that are located within 100 metres of public green spaces are often £2,500 more expensive than those that are 500 metres away.
So, what other factors do estate agents take into account when valuing your home and the area you live in?
One of the biggest factors that can have an impact on the value of a property is how close it is located to local amenities. This means your home’s proximity to transport links, schools and parks. Being close to more desirable amenities is likely to drive up the value of your home as buyer’s look for properties that leave them with easy access to everything they’re likely to need.
The quality of the shops and restaurants in your local area can have an impact. Premium brands are usually located in premium locations and makes the houses in that particular area more desirable to buyers. This is known as the ‘Waitrose Effect’ and means the demographic of the area is more likely to be affluent.
Another key factor to consider when valuing a property is how close to transport links it is. Buyers will think about the transport they’re most likely to need and will consider their commute to and from work before committing to buy a property. A property that isn’t located close to any main transport links is likely to see a decrease in value compared to those with these links on the doorstep.
School ratings are one of the most important factors estate agents will look at when valuing your property. Why? Because this is what prospective buyers are looking at.
If you’re close to the top schools in your area, you’re more likely to attract buyers. Estate agents will even go as far as looking at OFSTED reports to get a better understanding of the quality of the schools in your area.
The Department For Education found that house prices near the 10% best-performing primary schools are 8% higher than in the surrounding area. And, near the 10% best-performing secondary schools, prices are 6.8% higher.
When buying a house, many parents consider the long-term and will pay ‘school premiums’ not only to secure a good education for their children but because homes in these areas are more likely to hold their value, even in more challenging market conditions.
According to research, 69% of home buyers are fearful of crime rates in the areas they’re looking to buy property in. In addition, around 2.4% of house sales fall through every as a result of buyer’s fears of crime in the local area.
Crime levels are something that home buyers are likely to research so it’s something that estate agents must take into consideration too. If crime rates are higher, buyer’s are less likely to want to live in the area which can have an impact on local house prices.
Factors such as burglary, drug related crimes, assault, property vandalism, vehicle vandalism and car theft concern potential buyers.
Believe it or not, the popularity of the area you live in can have an effect on the value of your property.
If there are a lot of properties for sale in your area but not many people looking to buy, the value of your property can be affected negatively. However, if there are very few houses for sale and a high number of buyers, you’re more likely to have your home valued more highly.
Just as the types and quality of local shops in your area can have an impact on the value of your home, upcoming developments including leisure and recreational facilities can have an impact.
Landmark commercial developments can drive up property prices as proximity to amenities improves and causes higher demand for homes in the surrounding area. This will play a huge part in determining the value of your property.
Research shows that areas which feature a large-scale development, can see property values increase by 4.7% above house price growth in the surrounding area.
Whilst making home improvements and ensuring your property is presentable, there is only so much impact you can make on the value of your home through these types of improvement. Estate agents take many other factors into account when valuing your home so you should consider these when choosing an estate agent and selecting the best valuation for your home.
If you’d like to know more about selling your home, please get in touch with our experts who can provide support and advice. Or, find out more about Selling Your Property.