Over Or Under Market Value? How Does Your Property Compare?
Fri 19 May 2017
Whether you are buying or renting, when looking for a new property “Location, location, location” is said to be key. However, price also plays a big part in deciding which properties to view, being one of the key factors in narrowing down your search. If you are a Landlord (or indeed a vendor) you need to ensure that you are achieving the best price for your property whilst generating maximum interest from potential viewers.
The issue with an incorrectly valued property is that you do not get the most from the deal. If the property is undervalued you lose out, especially when you add the shortfall up over the year. If the property is overvalued, it tends to sit on the market until it becomes stale, which means a potentially lengthy void period. You are likely to then attract the “bargain hunter” Tenants, who are aware the Landlord is likely to accept a lower rent, and put in a cheeky low offer, often with some additional stipulations. Either way, the Landlord loses out.
One of my pet hates as a Letting Agent is other agents over or under valuing properties. When you employ the services of a letting agent, they should be looking out for you, as their client. I have however heard from other agents about properties that they have deliberately undervalued, to achieve a quick deal, or overvalued to win an instruction over other (more honest) agents. The agent concerned in the latter incident knew that the property would not achieve this price, but won the instruction, then recommended several reductions in price until the property was advertised at the correct market value and finally let.
So how do you know what the correct market value for your property is? You have a few options here. You can google similar properties, which will give you an approximate ballpark figure. No two properties are the same, and this will not take into account more unusual properties, things that particularly appeal to Tenants (such as a school catchment areas or whether they have a gas or electric cooker), condition or current market trends. Or alternatively, you can call a local professional agent you trust to give you an accurate figure, who will also advise you of how to maximise your income. Oh, and did I mention, we offer free valuations?