The Inside Edge
Do you have an idea of how much your property is worth?
It is an important and often misunderstood question. Many people assume that they can find the value of their property rather easily, by checking on the value of houses for sale in their local area. While this may give you a rough estimate of what your house could be worth, it is worth remembering that there can be large discrepancies in house prices, even within the same area or even along the same street.
Knowing what your property is worth is important. Many financial institutions will often use the value of the property as the basis for how much money they are willing to lend you. You also need to know the value of your property when it comes to renewing your home insurance. It is worth remembering that home insurance comes in two parts; contents insurance which covers your personal belongings and items that are not physically part of your home and buildings insurance. Buildings insurance can be the bigger challenge as you need to know the value of your home accurately and roughly how much it would cost to rebuild it at current market prices.
So what indicators can you find around your home that may well add, or detract, value from its overall price?
1. Extensions or conversions: If you have extended your home by adding additional rooms, or a conservatory, or perhaps have had the loft converted into a living space, this can add considerable value to your property compared to others in the area. Smaller changes in the home, such as changing a small room from a bedroom into another bathroom can also affect house prices and not always positively.
2. Garden area: In many areas, the amount of gardens the properties have is not always uniform. Obviously, those with larger gardens and more land tend to sell for a tad more than those with less. In addition, how that land is used, whether it is manicured gardens, wild grass or paved to allow for off road parking, can impact on the overall value of your home.
3. Security: The level of security your home has will also affect its value. If your property comes complete with deadbolts on main doors, double-glazed windows with individual window locks and is fully alarmed then it will be worth more than others that do not have these improvements.
4. State of repair: The general state of repair of your home also reflects its value greatly. This can easily be demonstrated by watching any of the TV shows that deal with housing developers who buy run-down properties, renovate them and then sell them on, often at significant profit. The better shape your house is in and the less work that needs completing on it, then the more it will be worth.
5. Issues: If your home has problems, such as damp or subsidence for example, then this can significantly affect the amount your home will realistically be worth.
6. Other buildings: If your property is large enough to include other buildings, such as a shed in the garden or other outbuildings, then this can increase the value of the property markedly too. How much this is depends very much on the location of the buildings, their state of repair and their functionality.
Understanding what your home is accurately valued at is a key issue for homeowners, whether you are seeking additional finance or trying to ensure that you have adequate home insurance cover, finding the realistic value of your property is a crucial step in securing the deal you want.