How much is my house worth?
Location, location, location
This is a prime consideration. The price range evidently varies drastically between cities. However this is not the only locality issue.
Your clients should take into account the nearby schools and their rating in the Department of Education’s performance tables. In some parts of England, catchment areas are commonly more porous so buyers are more likely to pay a high price to live near a well-performing school. Further aspects to take into account are:
• How easy is it for your clients to get to the property? Do they have access roads nearby?
• How city central is their property?
• Are there local amenities close to their property?
• Is the property in a flood risk area?
• What are the crime statistics for the area like?
Aside from locality, the structure of your clients property should also be at the top of the list. This will require a ‘Home Buyers Survey’, a service that is monitored and standardised by the Royal Institute of Chartered Surveyors.
The report will be able to tell you and your clients:
• The rate of the property on the open market
• Comments on the presence and state of damp proofing, drainage systems and insulation.
• Urgent matters that need addressing before contracts can be entered into.
• The house’s general condition
• Any faults in accessible parts of the property
Purchasing a property is an expensive and time-consuming process, so it’s a given that often, buyers want to take shortcuts to speed up the process and reduce the cost. One of the most common mistakes is being too economical with the survey and not receiving value for money. More often than not when buying a house, a lot of people depend on the basic valuation, but this could be a big risk.
Buyers tend to rely on the information provided by the basic valuation when deciding whether or not to purchase a property. This could be a big risk in the long run.
Your clients would be better off paying the initial cost (approximately £1,000) for a fully fledged property valuation, rather than realise later that the house needs a lot of structural work.
This article was brought to you by Mortgage Introducer