Simon Kelso, sales manager at Seymours, often gets asked about the different types of home valuation Guildford. People want to know what is best for them and how they can get the best deal when selling. We offer this service for free at Seymours, but it can be hard to know what to expect when the agent makes their first visit.
Simon says that “after doing a bit of research around your own area and looking at average house prices – you may think you have a pretty good idea as to the value of your own property. However, with an expert surveyor’s opinion, you may be pleasantly surprised.”
We will take into account different factors that you may not have considered before and come to a result having thoroughly checked every aspect of the property. It also helps to have estate agents that are full of local knowledge and have plenty to do with the area themselves!
There are a few methods you should be aware of and may want to ask about during the process. We are going to discuss some here with the expert help of Simon Kelso, but you can always contact us for more information!
The Comparison Method
This is the approach you are probably most familiar with. It is usually used with houses, shops, offices and smaller warehouses. Most areas will have a stable property market in which there are regular sales and lettings being made. This gives us the ability to look through recent data and compare the listed properties to the ones being valued.
We will take into account similarities such as size, condition and location to help us identify an average figure. Of course, no two properties are identical. So we then have to make reasonable adjustments based on differences and certain considerations such as renovations and the overall condition of the interior and exterior. With all of this information, we can come to an estimated market value at which the home will be listed.
The Profits Method
Another approach to home valuation Guildford may be used where comparative data is lacking or unsuitable for the building type. Often used for pubs, care homes and hotels – the method is useful where there is a business in operation.
To figure out a value, we must first estimate the business’ gross profit. From this, deductions will be made for working expenses as these could alter the final figure. Overall, this method will take into account the property’s trading potential and the tenant’s ability to pay rent. It sounds complicated – so if you want more information, have a read of this article.
The Residual Method
This is a little different. You would usually see the residual method used when valuing land or a plot with developmental opportunities. For instance, certain plots of land may be developed or changed for use as something more profitable in the future.
To come to an overall residual figure for the land, we have to take the gross development value and subtract the cost of development. This amount essentially acts as the capital the developer can spend on the property. There are plenty of costs and challenges to overcome with this method which can result in inaccuracies. This is why surveyors tend to favour other approaches before resorting to this one!
The Investment Method
Used to assess the potential return on investment through ongoing income from a property, it is particularly suited to buy-to-let or leasehold properties. Firstly, the surveyor will start with a market rental rate. This means comparing the property against similar ones being rented in the area, mirroring the comparison method. Estimated costs such as maintenance, management fees and other associated costs will be subtracted from the final amount.
This number is then compared with the cap rate that tells us how profitable the property is going to be over a year. This method can be convoluted and there is no guarantee that it will align with the true operating costs. However, it gives us a comprehensive analysis of a huge investment piece which landlords need to make an educated decision.
The Contractor’s Method
You will usually see this approach when all others have been exhausted. It is a cost-based approach that looks at how much a building and site itself cost to produce. Having put together these averages and totalling the development costs – the figure can be used to determine the value of an equivalent property.
In other words, however much a 3 story property in central Guildford cost to develop and build a few years ago – that number is going to be the estimated value for another one down the road. Now, do you see why it is a last-ditch effort? Of course, things like depreciation are taken into account – but it is not always the most accurate method.
How To Get The Best Home Valuation Guildford
When we visit properties, we have to take all of the evidence put before us and use that alongside local knowledge of the property market to come to a suitable figure that we also hope will be adequate for your needs! However, there are a few things you could do to ensure we get all of the correct information and ensure you get the best outcome.
It sounds silly, but while you may like to leave us to it – there are sometimes questions to be asked and access to be granted! So on the day of the valuation, make sure we can get into the house and around the premises easily. This includes all of the rooms, garden spaces and any adjoining buildings too like garages.
Our sales manager Simon mentioned: “It happens more than you think where we have turned up to a vacant property and can only peer through the windows hoping someone will appear! It’s not helpful for us and it will not give you the most accurate representation of the value of your house.”
Similarly, we may have questions about any renovations or dates of certain parts of the house. If you can have this information to hand, it will benefit you greatly and mean we can leave you in peace much quicker! The overall condition and age of a property will help us compare it to others in the area and determine whether it may be worth a bit more than those that are less modern.
Discuss Work Done
We are not mind readers and we won’t be able to find records of every piece of redecorating or renovation you’ve had done. So in order for us to paint the best picture of your house – it’s super helpful for homeowners to walk us through each phase. A good place to start is letting us know how long it has been since you’ve redecorated each room. From there, we would need to know things like:
- Have you had kitchens or bathrooms refitted?
- Have you added any extensions?
- Have you had any external repairs carried out such as the roof or double glazing?
- Have you had any structural work done inside or out?
- Have you fixed an issue such as damp with new guttering?
Some of these things may be obvious, but the more you can tell us – the more we are going to have to base our final estimate on. This will put you at an advantage to bump up the listing price.
Choose Seymours For Your FREE Home Valuation Guildford
You are likely to come across a comparison approach when getting your property valued. Because of this, it is key to get hold of surveyors and estate agents with plenty of local knowledge. Our team is really well versed with the property market and have a working knowledge of house prices in town as well as surrounding areas.
Especially with Guildford being such a mix of rural and urban – you will find tonnes of property types in a small area. This can really affect the prices you see and so it takes a little more digging and expertise to place a number on your property. However, with over 30 years of experience in the county and with 20 dedicated branches dotted throughout the area, our expert agents can secure you the right price.
Don’t forget to keep any paperwork and notes of money you’ve put into the building since you’ve lived there. This again will help us identify any advantages your house has over others in the area. Similarly, let us know what you’ve found out about your neighbour’s sales recently. While we may well already know – it doesn’t hurt to discuss and share ideas and preferences over the value of properties in the area.
Sell or let your property with the experts today: choose Seymours Estate Agents.
If you would like free-market advice or need an instant property valuation you can trust, get in touch with the team at Seymours Guildford using our contact form or call one of our 20 dedicated branches here!