Top 10 Property Valuation Impacts
We are in a recession, unemployment is on the rise and the housing market in far from buoyant so why is it that we are still improving our homes? That’s right, it keeps the property value high but there are things beyond our immediate control that can impact our property valuations and for both buyers and sellers these are some important things to be aware of.
its true, we have all seen the horror stories on Neighbours from Hell but having bad neighbours can actually impact the value of your home. A smart buyer will ask what the neighbours are like and take this into account. Halifax Home Insurance’s Peace of Mind survey done in 2011 revealed that a whopping 17% (or 1 in 5) home-owners had serious problems with their neighbours. This (according to the same survey) can impact the sale and cost the seller up to £31,000 of the sale price.
Unapproved / Illegal improvements
For structural and large changes then planning permission may be required. Some homeowners are not always aware of this and some may deliberately flout the regulations in an aim to make the sale of their home more appealing. Make sure you check as if you complete the sale the cost of rectifying any illegal changes will come out of your pocket and this is one of the many reasons that a survey is recommended.
Local School Gets Bad Report
Performance results of state schools are avidly watched by parents and being in the catchment area of a good school can make property far more appealing and impact the price, of course the inverse is true and bad reports can put parents off too.
We are a nation of animal lovers but this is not necessarily true when it comes to property. The smell of cat wee is a definite no-no when selling your home, as is having aggressive pets or too many of them. This can cut up to 5% off the sale price so keep that in mind when putting your property on the market.
A bad history
25 Cromwell street is a perfect example of knock the house down as it will never ever sell. That was the home of Rose & Fred West. Obviously that was an extreme case but murders and deaths can be upsetting and lead to some buyers being reluctant to make a purchase, it can even be superstition. If something has happened and it is common knowledge, it is best to be open and relaxed about it. It will likely have some impact on the value of the property though.
Increase in crime
These figures are now very easy to check on sites like upmystreet.co.uk and crime or lack of it, is an important factor. While you have limited control of the volume of crime in your area you can offset the issues by making sure your home is well protected with the best locks and deterrents visible and available. It will keep you and yours safe and also be an asset when you sell your home on.
Living on a flood plain
It will come up in a survey if your home is liable to flooding and the impact is usually the average cost of repairs, in the ever-changing global climate this is on the increase for many areas but be prepared that this will usually cost you between £20-40k off the sale price.
Looking at the décor you live for some people is not an issue as they can see passed it and look at the properties potential but this is not always true and so extreme tastes need to be toned down. That is why homes tend to favour neutral colours. If you want to get the best price for your property then tone it all down to help you make the sale. Your taste is your own but play to the mass market.
It is the fist impression and it counts. Clean the windows, make the property neat and tidy and appealing as if you don’t it could cost you and that cost could be as high as 5% of the valuation.
If there is something coming and you don’t like it then the chances are neither will someone else. New builds close by, crematorium, mobile phone masts, these all can impact the value of your home. While it may be inevitable you can minimise the impact by changing the areas you can (see points above).