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How do Estate Agents value a property?

Date Published 04 October 2021

The short answer to this question is partly their local knowledge and partly research. The first thing to do is to ask the seller to describe the property to the agent. This should include the full postal address, the number of bedrooms, whether it is a detached, a semi detached, terraced, an apartment or another type of dwelling. It would be handy to know if the owner has carried out any major works for example an extension, conservatory, loft conversion or something like new windows or a new boiler.

With this information in mind, the agent will now carry out their research. This will include checking on a multitude of websites with property data. Including the Land Registry house sale prices, Rightmove.co.uk to see what has sold within the past three months, as Land Registry data has an approximate time lag of around three months. At Tyler Estates, we buy in data which gives us the plot size of a property, internal measurements which is handy to see the square footage, if there are any Tree Preservation orders on the plot, council tax band and we look at any planning applications near by that could help or hinder a sale.

Zoopla.co.uk has a suggested price band which in my opinion is too far a range and carries no real weight or accuracy when pricing a home for sale.

Once the agent has carried out their research in the office they should visit the home to carry out an internal inspection to confirm their findings. Many times I have done my research only to arrive at a property to find a massive opportunity to increase the price as there may be scope to extend on the side or the property is in a poor condition which will lower the suggested asking price.

Some agents will base their figure on the square footage using comparisons of homes sold in the road or a neighbouring road.

The estate agent may provide you with a report of your property and a letter with their opinion including some comparisons of similar homes sold recently whether by their agency or another company. We would always suggest at least two agents valuing your biggest tax free asset.

It could be the agent sees a property from a different perspective to another agent or has a client looking to buy in that road and will pay more for it. Also the agent should listen to your plans and reason for selling as this could be a factor. It may be that the timing of the sale is more important than the sale price or it could be you need to obtain the best price possible to enable you to move forward and you have time on your side.

I hope you have found this article useful. If you have a question to ask us, please get in touch.