How do I get an idea of property value?

smt34

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. 

Thanks - yep it was purchased in 2018 for £305k, currently on the market for £450k.

YoungBlueEyes

NameUnavailable said:

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.

I'm not sure I can articulate it actually.

I thought a RICS surveyor would value your particular property and take account of the issues with it - the roof wants work, it's PRC or whatever. Whereas as an ea would be more like - ooh 3 beds on that road are hot right now, we'll put it on for last sale + x%. Or we'll try this toppy figure cos you've said you want this much for your next house, cos we can always reduce it if we don't get the bidding war I've just assured you will happen. 

So an ea is a partially educated guess, whereas RICS are professionals that calculate your actual house rather than the general market/area. 

If I'm wrong, what is the difference? What's the extra that RICS get paid for?

Bigphil1474

smt34 said:

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. 

Thanks - yep it was purchased in 2018 for £305k, currently on the market for £450k.

Looking at the ONS site, it gives the following figures:-

Average UK house price in January 2018 = £224,544
Average UK house price in April 2023 = £286,489
That's an increase from 2018 of 27.6%

If it was £305k in 2018, plus 27.6% comes out around £389k. 

There will be huge regional variations, so not sure how useful that info is. For example, according to the ONS, the national house price increase in April 2023 was 0.5% but this was fuelled by an increase in London of 2.1 % and the North East by 1.8%.

If this is a property down south (or maybe the NE), then it may be priced not far off, if it's in a lower demand area, then maybe over priced.

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/housepriceindex/april2023 

silvercar

smt34 said:

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’. 

Some ideas.

Look for local houses that were sold around the same time as yours and see what zoopla now values them at. If you can find any at the same sort of price, even better.

Yours may have had a new build premium at the time, or they may not if it was a small development in an unexciting part of town.

silvercar

At the end of the day valuations are an art not a science. A RICS valuer checks that there is nothing dodgy about the build and looks for comparables. I really don't think they can do more than that. It's not like there was some special skill that everyone knows exists but can't do themselves. eg structural engineers can do masterful calculations on load bearing etc we know they exist, but leave it to the experts. 

Divorcing_Dad

smt34 said:

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. 

Thanks - yep it was purchased in 2018 for £305k, currently on the market for £450k.

That sounds an awful lot if I'm honest.
Firstly, the New Build Premium is anywhere between 10 and 30%. So if we knocked 10% off say as this house is no longer new, then we're starting at £270k-ish.

Even if we take the highest performing areas (North East and Yorkshire), anything over £360k sounds very expensive.

IF, the house didn't devalue as per the New Build Premium (I would expect it to), then maybe £400k might be reasonable.

I'd be shocked if any mortgage company valued it at £450k unless something significant has been done to the house.

ReadingTim

Divorcing_Dad said:

I'd be shocked if any mortgage company valued it at £450k unless something significant has been done to the house.

I suspect the mortgage company's valuation will be flexible depending on your LTV, as they're really only interested in whether they'll recoup the amount they lent on it. 

So whilst they may not think it's worth £450k if they're lending £400k of that, they might be perfectly happy with that figure when they're only risking £200k.  

MultiFuelBurner

These new builds are suggested to be a small development and architecturally designed(built).

Of course that means nothing without seeing them but they could also be locally coveted homes which people would be willing to pay a premium for.

I am only going on a small collection of nicely designed homes built by a renowned local builder locally to us that definitely for this bill.

Difficult to judge with such limited details,.no location or size of property and exactly the what does architecturally built mean in this instance.

trailingspouse

The sellers and their Estate Agent have told you how much they think it's worth.

You need to now tell them how much you think it's worth. The answer is somewhere in the middle.

badger09

smt34 said:

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. 

Thanks - yep it was purchased in 2018 for £305k, currently on the market for £450k.

As has been said, it’s basically worth approx what you are willing (& can afford!) to pay and what vendor will accept. 

Even taking account of the cachet of a small architect designed development and the fairly recent market rocketing prices, almost 50% uplift with no changes to the property since 2018 sounds incredible. 

Care to post a link or the Rightmove ref?