Valuation

David_Bicker

Hi there. I'm a new member!

My house was valued at £200k 12 months ago for the purposes of my mortgage (we had gutted and completely rennovated a 2 bed 1850's cottage - it also has an eat-in kitchen, reception room, bathroom, 60ft x 40ft garden and 3 off road parking spaces and period features. It is based nr Cambridge).

We have subsequently extended to the rear to add a new large reception room and have also landscaped (patio, lawn) and added a robust shed.

Doing some sums based on price growth in the area over the last 12 months and assuming I get 25% value increase on the cash spent on the extension and garden etc, I reckon it will be worth £240k.

Does anyone think that is reasonable? Also, is the expectation of getting 25% "return" on the cash spent on adding the extra room reasonable?

Thanks

Angelboots

How much did you spend on the extension?

lynnexxxo

Why not get an EA round to give you a rough price of what they reckon they could sell it for (not exactly a valuation but its free)

moneysavinmonkey

David_Bicker wrote: »

Hi there. I'm a new member!

My house was valued at £200k 12 months ago for the purposes of my mortgage (we had gutted and completely rennovated a 2 bed 1850's cottage - it also has an eat-in kitchen, reception room, bathroom, 60ft x 40ft garden and 3 off road parking spaces and period features. It is based nr Cambridge).

We have subsequently extended to the rear to add a new large reception room and have also landscaped (patio, lawn) and added a robust shed.

Doing some sums based on price growth in the area over the last 12 months and assuming I get 25% value increase on the cash spent on the extension and garden etc, I reckon it will be worth £240k.

Does anyone think that is reasonable? Also, is the expectation of getting 25% "return" on the cash spent on adding the extra room reasonable?

Thanks

Hi there, I don't think guestimating a percentage return based on the amount spent is the right way to do it.. you are kinda working backwards doing it that way!. Have you never watched property ladder!!

The value added to the property will depend on many other factors including what you have had done, and whether there is a demand for proeprty with this addition, whether you spent wisely, and finally what the market is doing (slow or in decline in a lot of places)

Best bet is to get an estate agent/ valuer in , you could maybe do your own comparison with other similiar properties in the area if possible.

What you can't do is add up how much you have spent and then just add that onto the sale price with a bit more. Unfortunately it just doesn't work like that, although in a rapidly rising market it may look like it did!

nollag2006

Wow !! Sounds like you've made the place lovely !!

Why not try one of the house price valuation tools discussed here:
http://forums.moneysavingexpert.com/showthread.html?t=20749

This should give you a general idea...

David_Bicker

Thanks guys. Estate agent is coming round this afternoon to have a look! Hopefully things go ok!