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Valuations 
The valuation is a 15-minute process at the heart of selling and buying a house. In a transaction you get two valuations: one is informal, from the estate agent, and this is the recommended sale price; the other is on the home you buy, usually made by a qualified surveyor acting for your mortgage firm. Some estate agents are experienced valuers - the bigger the firm, the more likely this is. Large estate agency chains tend to use a code devised by the Royal Institution of Chartered Surveyors which says sale prices should be based on: Agents factor in a 'market component'. They look at comparable properties on sale locally, then sometimes include a 'push' element - that is, an agent trying to push up prices. This is common in the spring, when asking prices are usually higher than in the autumn as agents try to 'push' the market to new highs as the selling year starts. If you are a seller going on to buy a different property, you will also get a valuation on your intended purchase by a qualified surveyor acting for your mortgage firm. In more than 90 per cent of cases it coincides with the estate agent's and seller's asking price, but in volatile markets there may be a discrepancy. If in this valuer's opinion the house is worth less than the purchase price, the proportion that will be lent by the mortgage firm will probably be calculated on this lower figure. The amount of the loan offered to you may therefore seem a strange percentage of the purchase price. Buyers often accept this, knowing they are paying a premium for a specific reason - there may have been many competing bids, pushing up prices to what in reality may be an 'above-market' level. Some buyers, however, will continue with the transaction, because they believe long-term appreciation on the property will more than compensate for the high price they must pay. Top tips Cosmetic appearances should not affect valuations but 'house doctors' claim they have evidence to the contrary. They say even experienced valuers judge whether an asking price is fair by first impressions (external appearance of home and hallway); on the brightness of rooms (which should be clutter-free and neutral coloured); and especially on kitchens and bathrooms (which should be sparkling). If you require any further information about the services that we provide or would like to review your financial planning position, please contact us |