How do I get an idea of property value?

smt34

We recently viewed a property that we could potentially be interested in.
 

It’s about 5 years old, built by an architect - just a small number of houses done on the same street by them (ie not a big estate/development). 

What we’re struggling with is how to work out what the value of the property really is. None of the other houses have been resold since they were originally built, and the market has obviously changed a lot over the last few years. 

Unfortunately none of the other properties in the village are very comparable. 

Other than going off the valuation the house is on the market at, how would we get some indicators around the real value of the property?

If we are seriously interested, we’d want to avoid any situation where we ended up in negative equity, and ensure we’re paying a fair price. 

Thanks in advance!

Bigphil1474

The estate agent will have valued it at a marketable price. Expect it to be marketed at slightly over what they expect to sell it at, in the current market. Depends on the price, location, demand in the area etc. as to the difference between the advertised price and expected sale price. If I was looking at a £200k house now, I'd be looking to put an offer in around the £190k mark. A couple of years ago, you might be starting at £205k or more.
There are a lot of variables, but if you end up paying for a survey, they will also give you a real value and a list of things that may need doing to it. Of course, you have to pay for that survey.
Negative equity is only a problem if you have to move. If you are thinking of living in a new house for any significant period of time it is unlikely to be an issue.
Do you know how much the houses were sold for when they were built? 5 years isn't that long ago, so it shouldn't take much calculation to start from that value. 

silvercar

For a house that hasn't been altered since last sale, in an area that hasn't significantly changed in that time, zoopla may be worth a look https://www.zoopla.co.uk/house-prices/ not always accurate, but a reasonable starting point for an unchanged house.

The first sale on this small development could dictate the price going forward.

YoungBlueEyes

Would a RICS surveyor be useful in this situation? Rather than relying on either a) what the seller wants for it, or b ) what an EA has put it on for.

user1977

Bigphil1474 said:

Do you know how much the houses were sold for when they were built? 5 years isn't that long ago, so it shouldn't take much calculation to start from that value. 

But probably misleading, given that newbuilds typically have a premium - and doubly so if the headline price doesn't reflect any incentives provided in return.

If there are no comparables in the village then you'll need to look further afield - and apply a larger margin for error.

Grizebeck

Get a RICS valuation.  That's what I've asked the seller of a house to do that I am interested in

user1977

Grizebeck said:

Get a RICS valuation.  That's what I've asked the seller of a house to do that I am interested in

Hopefully you've asked them to get a valuation addressed to you rather than to them?

ReadingTim

Any property is only worth what the buyer and seller agree it's worth.  You can have as many comparables and RICS valuations as you like, but if the seller doesn't like the number you're offering, then you ain't gonna be buying their house.  Equally, you can only offer what you're willing and able to pay, so you either reach an agreement, or you don't.  

Unless the place has been on the market a seriously long time, or the seller is absolutely desperate to sell, you're probably going to need to be within 85-95% of the asking price to buy.  

MeteredOut

You could also look at average £ per m2 for recent sales in the local area, even for properties that are not comparable. It'll give no more than an indicator, but you'd want to know if, for example, they're asking twice per m2 for the property.

NameUnavailable

YoungBlueEyes said:

Would a RICS surveyor be useful in this situation? Rather than relying on either a) what the seller wants for it, or b ) what an EA has put it on for.

How do you think an RICS surveyor arrives at their valuation? Serious question.

smt34

silvercar said:

For a house that hasn't been altered since last sale, in an area that hasn't significantly changed in that time, zoopla may be worth a look not always accurate, but a reasonable starting point for an unchanged house.

The first sale on this small development could dictate the price going forward.

Thanks…unfortunately zoopla says that ‘we do not have enough data to provide an estimate on this property or similar houses in the area’.