Tips on How to Value Your Home during the Coronavirus Pandemic

Sarah Parker's picture
Authored by Sarah Parker
Posted: Tuesday, May 19, 2020 - 17:08

If you’re planning to sell your property or home during this coronavirus pandemic, the main question you’ve is perhaps ‘How much is the property worth?’ There’re several ways in which you can use to figure out your property’s worth, whether by yourself or by using a third party's assistance. In addition, there are a few things that you can undertake to enhance your house’s value if you are planning to do so. 

Valuing your property appropriately is perhaps the most important thing when it comes to selling your house. During this crisis, you don’t need to overvalue the home since you will lose the house’s appeal after the first few weeks of showings. If needs be, it is advisable to drop the asking price, but you’ll need to incorporate a CMA (comparative market analysis) to make sure that you’ve correctly valued the house. 

The Valuing Puzzle

Although valuing the house extremely high can be a big mistake, you do not need to worry about pricing it extremely low. In the realty industry, pricing your house below the standard market value will make it to get many offers that will certainly make the price shoot. Valuing the property is all about the law of supply and demand. You may consider using a real estate agent as they have proficient knowledge when it comes to preparing CMA, but you can undertake it yourself as well.

The Comparative Market Analysis – Search for Similar Listings

First, check for a comparable house that has been listed in the same area as the house over the last couple of months. Remember, appraisers always limit their comparatives to three months. Thus, you may need to narrow down your search timeframe as well. Preferably, you will certainly need to come in close to the ultimate home’s appraised value.

When comparing your home to others, it’s common to overlook some details. For instance, you need to pay close attention to the neighbourhood’s physical barriers and dividing lines, including railroads, freeways, and major streets. Always avoid comparing the property to properties on the other side of the roads. Remember, matching properties directly across the road from one another can have a difference of up to £100,000 in their valuation.

If possible, consider comparing comparable square footage that is within a variance of +/- 10%. Besides, it would be wise if you compared houses of similar ages. One area might comprise of houses constructed in the 1990s and its right next to houses built in the 2010s. The valuation of these two types of houses will vary significantly. Thus, ensure that you are comparing an orange with an orange.

Check for Active Listings

Keep in mind that as a seller, you can ask for whatever amount you want when selling your property. It doesn’t necessarily mean that you have to sell the house at the price that your competitors are selling at. However, you need to visit the active listings houses on the neighbourhood so that you know what the buyers expect when they come viewing your property. When touring the listings, make a note of the things you like and dislike about the houses. The feeling that you get upon stepping your feet in the apartments is also of significant consideration.

Note, you are competing with these houses. Thus, ask yourself why a willing buyer would prefer buying your competitor’s house over yours. With the answers you get, you can adjust your property accordingly. It is also essential to recreate the house’s positive reception feelings whenever possible.

Help is Available Online

You can browse the internet for the best financial agency valuation websites if you feel like the valuation process is complex. On these sites, you’ll find some useful tools to help you in property valuation, including an online budget calculator, which can assist you in adding some aspects for appreciation since you built or purchased the property. 

You need to utilise the above tips when valuing your home to sell. The tips, as mentioned above, go a long way in helping you to value your property correctly and to make it easier for potential buyers to get interested in the price you are offering. If you follow these tips to the latter, you will have an easier time getting the right buyer to purchase your house in no time during this coronavirus lockdown.

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