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Estate Agents And The Valuation Of Property
- By Tom Pretty
- Published 03/29/2009
- General
Tom Pretty
Real estate expert Tom Pretty looks at the property valuation process and how homeowners can choose estate agents.
View all articles by Tom Pretty
Selling property is not always the easiest of tasks requiring a great deal of research in order to assess the current state of the markets and finding the best estate agent to carry out the process. One of the most important factors involved in the process is the property valuation. But how can homeowners find a realistic valuation? How can they find the right agent for the task? And what does a valuation say about the current economic climate? Hopefully the following article will be able to divulge this information and offer sellers some advice on the process.
The first step to gain a property valuation is to recruit the services of agents and surveyors. The majority of experts agree that at the bare minimum it is usually advisable to use around three different agents to value your property. Once they have valued the home it is not always preferable to go with the agent offering the highest valuation; ultimately the figure has to be realistic, a price that is too high will put many potential buyers off.
At this stage an agent is likely to place a contract on the table that signs you to their services. The savvy seller should avoid being tied to a particular agent for more than four weeks, by doing this it is possible to find a different service if the agents are not effective. In addition it is typically worth avoiding a sole selling agreement, this removes the option to go multi agency, which can be beneficial for some sellers.
Ultimately an agent that knows the local property market intimately is the best option. If they have knowledge of the local area they will be able to market a property effectively, they will also be able to conduct a more precise valuation process. In addition the agent should have a good rapport and be able to build a relationship with you; this works both ways, if an agent makes you feel uneasy it is likely that potential buyers will have the same feelings.
The process of a property valuation is not regarded by most experts to be an exact science. It requires a logical method of thought that takes a myriad of factors into account. An agent should not charge for a valuation. As previously stated, getting a minimum of three is preferable. Sellers can utilise tools such as property reports if they want to gain a ballpark figure before letting agents into their home. This can also be done using online valuation tools; ultimately this form of valuation provides the seller with a yard stick to assess any future valuations.
The agent will take into account a number of different factors when conducting a valuation. Firstly they look at the current condition of the property, whether there is any outstanding building work needed. Secondly they will take note of extensions or improvements that have been made to the property that could alter the value; it should be remembered that some improvements can actually be detrimental to the eventual sale price. The final element of the evaluation is to assess the current market conditions. In times of plenty, where there is an excess of buyers, prices are likely to be higher whereas in contrast if the there are few buyers on the market, prices will understandably be lower.
Hopefully this article has cleared up some of the issues surrounding the valuing of property whilst also providing some advice to sellers on how to choose an estate agent.
The first step to gain a property valuation is to recruit the services of agents and surveyors. The majority of experts agree that at the bare minimum it is usually advisable to use around three different agents to value your property. Once they have valued the home it is not always preferable to go with the agent offering the highest valuation; ultimately the figure has to be realistic, a price that is too high will put many potential buyers off.
At this stage an agent is likely to place a contract on the table that signs you to their services. The savvy seller should avoid being tied to a particular agent for more than four weeks, by doing this it is possible to find a different service if the agents are not effective. In addition it is typically worth avoiding a sole selling agreement, this removes the option to go multi agency, which can be beneficial for some sellers.
Ultimately an agent that knows the local property market intimately is the best option. If they have knowledge of the local area they will be able to market a property effectively, they will also be able to conduct a more precise valuation process. In addition the agent should have a good rapport and be able to build a relationship with you; this works both ways, if an agent makes you feel uneasy it is likely that potential buyers will have the same feelings.
The process of a property valuation is not regarded by most experts to be an exact science. It requires a logical method of thought that takes a myriad of factors into account. An agent should not charge for a valuation. As previously stated, getting a minimum of three is preferable. Sellers can utilise tools such as property reports if they want to gain a ballpark figure before letting agents into their home. This can also be done using online valuation tools; ultimately this form of valuation provides the seller with a yard stick to assess any future valuations.
The agent will take into account a number of different factors when conducting a valuation. Firstly they look at the current condition of the property, whether there is any outstanding building work needed. Secondly they will take note of extensions or improvements that have been made to the property that could alter the value; it should be remembered that some improvements can actually be detrimental to the eventual sale price. The final element of the evaluation is to assess the current market conditions. In times of plenty, where there is an excess of buyers, prices are likely to be higher whereas in contrast if the there are few buyers on the market, prices will understandably be lower.
Hopefully this article has cleared up some of the issues surrounding the valuing of property whilst also providing some advice to sellers on how to choose an estate agent.
