“Location, location, location” is a cliché – because it is true. Proximity to public transportation, schools and shopping centres has a considerable effect on your home’s market value. The atmosphere of your neighbourhood, nature of the surrounding landscape and view from your house are also key factors influencing your home’s market value.

Technically, cosmetic appearance should not affect home valuations. However, prominent property experts lay claim to contradictory evidence. They contend that most valuators rely heavily on their first impressions of a home; especially regarding the exterior of your house, brightness of rooms and the condition of the bathrooms. A well-designed kitchen has the potential to boost a property’s value drastically. The square footage and overall design of your house can also significantly influence its market value.

Why estate agents cannot always be trusted

Second only to politicians as the least-trusted professionals in a recent UK survey, estate agents are infamous for inaccurate property valuations. Some even go as far as directing home sellers to ‘impartial’ financial consultants who are, in fact, collaborating with the estate agents to confirm imprecise valuations.

This discrepancy between the estate agent’s exaggerated valuation and true worth leads to a false sense of security for homeowners who are expecting a good deal. Reality kicks in when the homeowner receives much lower offers than initially anticipated.

Often, homeowners need to sell fast due to financial urgency, and thus accept low offers. Not mentioned by the estate agent initially, however, are further hidden costs and deductions that lessen this already reduced amount. Educate yourself and visit our More Bills webpage for more about these ‘silent’ deductions that too few people know about.

Take a moment to consider one more issue. Estate agents often implement the ‘push element’ to inflate property prices – as well as their commissions – during peak selling periods. This tactic instils false hopes of lucrative deals in sellers and increased resistance among buyers, who understand that the prices are unreasonable.

Avoid Internet property valuations

The flaws of online property valuations are manifold. Based solely on principles of ‘averages’ and ‘the common denominator’, these valuations draw random similarities between your home and previously sold properties and then use this information to fabricate an amount. It is only logical to contend that every home is unique and that this method of property valuation would yield inaccurate results.

Be wary of property buying companies with idealistic promises

Numerous property-buying companies exploit vulnerable people with financial complications by luring them in with unrealistic claims. Promising instant cash gratification and the end of your debt worries, they attempt to buy your property for much less than it is worth. In some instances, the companies rent homes back to their former owners at a rate higher than their previous mortgage commitments! Furthermore, these companies often charge hundreds of pounds for property valuations and then provide a mere drive-by valuation in return.