It is no secret that moving house is a complex process, and getting from A to B can feel like a minefield no matter your age or the size of your family. You will need to find a home that is the perfect antidote to a long day of work, a place to relax, a place to host, and a place to decorate. One of the key parts of moving house is, of course, selling your property – and this means having a property valuation performed.
Property valuations are an assessment of your home’s value to potential buyers. This takes into consideration the property’s current state and it’s permanent aesthetic characteristics, the property’s location, and the size of your building. Having your property valued will help alleviate any concerns that you may have about your home’s current state, and also, will give you valuable information regarding how much you should sell your home for.
However, it is essential to instruct a Home Report in Scotland. It is an example of good practice for an estate agent in Scotland to offer a valuation and appraisal of your property. Most estate agents will do this so they are represented as a fair business and to ensure they are providing good information to potential sellers. NB: estate agents do NOT act for purchasers in Scotland. As a leading estate agent and law firm located in in Scotland, we pride ourselves on providing homes of varying calibre around the nation. Below, we draw upon our expertise and delve deeper into the world of property valuations, and what that means for you selling your home.
What goes into a property valuation?
So, first and foremost, what exactly goes into a property valuation? As mentioned above, a property valuation includes your property’s current state, its size, its location and any notable permanent aesthetic features.
Below, we take a detailed look at how these affect a property’s value.
Location
For many estate agents, price calculations don’t just occur on the date and time that you book for it to take place. Calculations can occur over a long period of time. For instance, for local estate agents, they will have monitored and kept an eye on the area in which your home is located. For example, what schools are nearby? Did these schools receive good OFSTED marks? Is your home in close proximity to public transport links, local highstreets, shops and eateries? And, is your home close to parks and green spaces? All of these will contribute towards your home’s value.
This information will help inform a property valuation and will establish a target market that your estate agent is looking to attract. Of course, for homes closer to primary and secondary schools, estate agents will want to attract families or couples looking to start a family. However, for homes and apartments that are in city centre locations or close to universities, estate agents will market the home towards students and young professionals.
Size and aesthetic features
The size of your home will also reflect and influence the price, as well as aesthetic features like grade listing and period artefacts. As a general rule of thumb, the larger your home, the higher the price of your property. Yet, smaller spaces like cottages and apartments can still be costly if they are considered unique and they possess plenty of original character.
Do I need a property valuation?
It may be surprising to some that there is not a one size fits all box for property valuations. Infact, there are many property valuations that can be performed for various situations, for instance probates and Help to Buy. Read on to find out more.
Probate valuation
A probate valuation occurs after a person has passed away and their estate needs to be valued so it can be figured out how much inheritance tax is owed and so the estate can be evenly distributed. The deceased’s property comes under this estate.
Help to Buy valuation
The Help to Buy scheme is a shared equity scheme introduced by the government to help people take the leap to get on the property ladder. This is where first time buyers can borrow up to 20%, or 40% if you live in London, for the cost of a new house. Then, this loan is gradually paid back, and is interest free for the first five years. A Help to Buy valuation occurs when a person is in a position where they want to remortgage their house and start repaying their loan.
Matrimonial valuations
Matrimonial valuations are needed when relationships come to an end, but you still share a home. This is ideal as, for many relationships, further discord can occur if the assets are not split equally or amicably. For instance, it can be difficult to ascertain who should get what, especially if the end of the relationship has caused bitterness and resentment. A matrimonial valuation assesses exactly how much your property currently is and therefore gives both parties valuable insight into how they should organise the selling of the property.
Shared ownership valuations
A Shared Ownership scheme allows you to buy a share in a home worth 25% to 75% of the property’s market value and then pay a discounted rent on the remaining share, which is owned by a landlord or a housing association. You can then increase your share by 10% increments, which is known as ‘staircasing’. If you do decide to purchase an additional percentage, then a formal valuation is required.
What does it mean for your sale?
For many, a valuation is essential as it can give you peace of mind over your home’s current state or the home you are looking to buy. And, as stated above, in many stressful life situations like the death of a loved one, or the break down of a marriage – they are incredibly beneficial.
In addition, property valuations are important towards the selling of your home, as the valuation will be the listed price on the estate agent’s website. Moreover, it helps provide improved and highly tailored marketing. As mentioned above, your home could be within close proximity to schools and be the perfect size for an atypical nuclear family – meaning that the estate agent can tailor their adverts towards this market, thus increasing the chance of sale.
How can I improve the value of my home?
For many homeowners, from the moment they start thinking about selling, or whenever they plan to have a home renovation, it will be in the back of their mind as to how they can improve the value of their property. Simply because, if you can get a higher price for your home, then you are more likely to either buy a larger home, or downsize and save money.
Simply put, many home renovations like extensions, conservatories, loft conversions and generally beautifying buildings can help increase your home’s attractive nature and, in turn, its price. Infact, even just a thorough and lengthy spring clean before your home is valued can also help boost your home’s worth in the eyes of the estate agent.
If you are looking to improve the value of your home, but aren’t sure where to start or how much to invest in this matter, then another one of our handy well-written blogs can instruct you further. We have written a great guide to improving the value of your home,
McDougall McQueen: Estate Agents, Property Valuers and Lawyers throughout Scotland
Here at Mcdougall McQueen, we are more than just estate agents. Infact, we pride ourselves on being a one stop shop for property sales, family law, conveyancing, wills and executries and commercial law.
In life, you never know what exactly is going to happen and both happy and sad situations can blind side us, or inevitably lead us into a difficult situation. Whether you want to sell your home after your marriage has ended, or you are looking to buy your first property in Edinburgh, our expert team can lend a helping hand. On our w,NULL